Video instructions and help with filling out and completing What Form 2220 Exempt

Instructions and Help about What Form 2220 Exempt

In the prior video we shared how the state has decreased their funding to local districts due to rising property values so what has climbed done to prepare for this decrease in funding the district has been proactive in cost saving and cost avoidance measures over the years we've also sought revenue generating measures to bring additional revenue into the district cost-saving measures include an ambitious energy management plan that it saved the district 20 million dollars over the last 10 years along with savings through improvements to preventive maintenance programs standardization of equipment and supplies and cross-department functional efficiencies of nine hundred fifty thousand dollars running a triple tiered bus service saves the district five million dollars annually and offsets the cost of purchasing additional buses that would cost the district around 10 million dollars benchmarking auxilary services against best practices also allowed the district to pinpoint areas for additional savings in custodial maintenance and ground services cost avoidance measures within the energy management plan in plant operations save the district in excess of 32 million dollars over the last eight years revenue generated locally includes funds from facility rentals the Class D Education Foundation in stadium advertising we want to especially celebrate our wonderful client honesty education foundation that has poured more than 2.8 million dollars into our schools via grants professional development the reading expressed the steam Express and other innovative educational experiences the district prepared for some lean years knowing we were opening for new schools in four years for example over the last two years Kline ISD used twenty-eight point nine million dollars of excess fund balance which is like our district savings account or the state rainy day fund in order to balance the budget at the close of this school year the fund balance is projected to be just above 25 percent of our expenditures which is the lowest we can take it and still be within district policy the 25 percent represents our payroll for roughly two and a half months and is the recommended reserve amount by the Texas Education Agency and bond rating agencies continuing to use fund balances not sustainable of course in fact budget forecasting indicates that the fund balance would dip to 20 percent next year and drop to nine percent within three years this is not a prudent way for the district manage our funds and so the district continues to look for ways to fund the current level of service available to our students as you know the state funding system presents many challenges and the state's contribution to public education has declined significantly over the last 10 years over these years Kline has looked for ways to save an offset cost and to generate additional revenue we've also utilized our fund balance to the lowest prudent level so how can we continue to maintain the current educational programs and services for students in this section we'll examine the plan we have for moving forward it includes both reducing spending and bringing in new revenue let's start with becoming even more efficient in our spending in order to see where we were spending differently from our peers we completed a peer group analysis we found that among other things Klein ISD spends less in a number of areas including central office administration and facility maintenance and operations this allows us to invest more than our peers in areas that affect students most directly and our analysis showed exactly that as we invest more than our peers in instruction counseling security teacher training and school leadership over the next three years our goal is to shore up the budget by eight million dollars ensuring that the areas with which we become more efficient have minimal direct impact on students such as budget areas like non campus department budgets staffing via attrition among others these strategic reductions will bring our spending into alignment with our peers the shoring up is not enough to balance the budget however even after spending twenty eight point nine million dollars of fund balance and an additional eight million dollars of planned budget reductions we still find a recurring shortage of twenty two point two million dollars beginning with this year's budget and so we move to the second part of our plan to generate more revenue for the district by maximizing the state school funding system via a tax ratification election this will allow the district to address the budget shortfall and avoid increased budget cuts for a number of years when a tax ratification election or tre is approved and increases the amount of funding per pupil we received from the state and allows us to utilize the state finance system to generate additional revenue you'll recall that target revenue is a fixed amount that takes legislative action to increase well when a tre passes that amount actually increases even more than the amount local taxpayers pay here's how it works the tax rate has been a dollar four for the last 11 years the state allows for the adoption of a tax rate exceeding $1 for but this requires voter approval in the form of a tax ratification election when voters approve an increased tax rate above $1 for the first two cents of that increase our what we call super pennies and they allow us to maximize the state funding formula you see each normal penny of the mo no tax rate equals about 2.1 million dollars in district revenue from local property taxes however the state funding formula for super pennies requires the state to match more than double the local contribution so for the two super pennies the district receives 4.2 million dollars from local revenue and an additional nine point two million dollars in state funding garnering a total of thirteen point four million dollars in order to complete the budget picture we're asking for an additional seven pennies that yield local and state