Budget Process Manual

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Vision, Mission, & Goals

Vision: To be a leader in preparing every student to excel in tomorrow’s world. Mission: To provide an education that challenges all of our students to excel. Goals: Belton ISD will

1. Implement and monitor well-designed processes, including long-range planning and budgeting, to address future growth, changing student needs, and the maintenance of effective and efficient operations.

2. Achieve success on the State's student achievement and quality of learning indicators to prepare students to live, learn, and lead in an ever-changing global economy.

3. Attract and retain high performing administration, faculty, and staff who reflect the values of the community, serve as positive role models, exhibit moral excellence and are committed to achieving excellence for all students.

4. Sustain safe and supportive schools that provide secure, nurturing, non-threatening, respectful and disciplined learning environments where all members excel and exhibit moral excellence.

5. Promote shared partnerships of students, parents, schools, community and BISD alumni to include clear, informative, timely, concise communication and recognition of the achievements of all stakeholders.

6. Comply with all state and federal guidelines regarding instructional programs

including but not limited to Title I, Special Education, Dyslexia, State Compensatory Education, Bilingual English as a Second Language, Migrant, Career Education, and Gifted and Talented Education.

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The District

The Belton Independent School District encompasses an area of 197 square miles in Bell County, located in the central region of the state of Texas. Cities located within the District include Belton, Morgan’s Point Resort, and Temple. Belton, the largest city totally within the District, is located 45 miles south of Waco and 60 miles north of Austin.

The District has thirteen educational campuses, nine are situated in Belton, and four, in Temple. The

facilities include eight elementary schools (grades K-5), three middle schools (grades 6-8), and two high schools (grades 9-12). Official enrollment for the 2011-2012 school year is 9,551. The District has a separate administration building, support facility, special

education office, transportation facility, and various athletic facilities all located in Belton. South Belton Middle School and Belton New Tech High @ Waskow opened in the 2012 school year. Because of the continued growth in the District, a bond election has been called for May of 2012 for the construction of two elementary schools and one middle school.

The District received an “Academically Acceptable” AEIS rating and an “Above Standard Achievement,” Financial Integrity Rating System of Texas rating from TEA.

Several strategic planning initiatives to improve student achievement are underway. With a focus on increasing student engagement, the District has transformed Waskow High School into Belton New Tech High School @ Waskow, implementing Project-Based Learning with each student issued a MacBook. The project is funded by a $3 million Texas Title I Priority Schools grant. In 2012-13, the school will welcome its second incoming group of freshmen and will reach half of its expected capacity with a total enrollment of approximately 250 students.

In an effort to equip students with the necessary skills for competing in a global economy in the 21st Century, the District continues to investigate ways to increase the use of technology by students. The pilot 1-to-1 iPad project at South Belton Middle School has shown students are more engaged and produce better quality products when using modern technology. Building upon this initiative, the District is investigating the possibility of expanding the use of iPads by students to Belton High School in 2012-13.

Insuring professional development is job-embedded throughout the year is also a priority for 2012-13. High quality sessions covering technology integration, Effective Literacy Teaching, Effective Math Teaching, and other sessions on engaging instructional

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strategies will be offered during the summer. Intentional, structured follow-up and support for teachers will be provided to maximize the effectiveness of the training. Other programs such as Response to Intervention, Safe and Civil Schools, AVID, Advanced Placement, and G/T enrichment will continue to be offered.

General Economy

The economy of the area is primarily based on agriculture,

manufacturing, the Scott & White hospital system, federal military activities (Fort Hood), education, and a rapidly growing retail sector. Fort Hood is expected to maintain its level of troops, and the joint-use military/civilian airport facility in Killeen is in use. A small

percentage of the District’s students are uniformed military dependents, and more are dependents of civilian employees of the base or military retirees. The Belton area benefits as a recreational center with Lake Belton and Stillhouse Hollow Lake located in the immediate vicinity. Belton is the county seat of Bell County and the home the University of Mary Hardin-Baylor, a four year private college with graduate programs.

Belton is the economic and trade center of the District and is extremely aggressive in competing for new business and industry. A new large format HEB grocery store has been completed in Belton. Other retail projects are in progress including a six screen movie theatre in the City of Belton. The District is on the Interstate Highway 35 and Highway 190 corridor and has many areas available for development. Several road expansions and improvements are underway in the area and region.

Multiple new home developments are underway in the District, in and around Belton, both single home and multi-unit facilities. The City of Belton operates the water and wastewater systems in the Belton area, contracting its wastewater treatment to the Brazos River

Authority.

There are a number of other medium sized cities located in the immediate area of the District, these being the city of Temple, immediately adjacent to the north with a population of over 60,000 and the cities of Killeen and Harker Heights located some 15 miles to the west with a combined population of over 140,000.

The area has several major health facilities in Temple and one in Killeen. The Olin E. Teague Veterans’ Medical Center and Scott & White Hospital are both located in Temple.

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Budget Preparation Procedures

Budget development will be scheduled through the budget calendar. Budget planning is part of the strategic planning process of the District. This document will outline the budget procedures and

responsibilities of the various stakeholders in the process.

Resources are budgeted to meet the goals of the District and those of each campus and program of the District.

The Superintendent is the budget officer of the District and oversees

the budget’s preparation. The Superintendent reviews the budget allocations and underlying assumptions. Annual budgets are prepared for the General Fund, Food Service Special Revenue Fund, and Debt Service Funds. Budgets are prepared but not adopted for the capital outlay and special revenue funds from State, Federal, and other sources. Special revenue funds are from specific sources and legally restricted to defined purposes. Title I, Fund 211; IDEA B Special Education, Fund 224; and Advanced Placement Incentives, Fund 397 are examples.

The Board of Trustees participates in the budget process through Board meetings and budget workshops held as needed for budget development and approval. No line item in the budget has final approval until the budget is adopted by the Board of Trustees after the official public budget hearing. Once the budget is adopted, the property tax rate is adopted by the Board that will support that budget.

The Business Office prepares revenue projections for all funds based on State funding formulas and assigned CPTD values, estimates of local tax revenue, enrollment projections, and other factors.

The Business Office coordinates the budget request process and enters approved allocations into the finance software budget system for review by

stakeholders. During a legislative session, estimates for the

following year are made using the current school finance law.

Personnel costs accounted for 82% of the General Fund adopted budget in the 2012 school year.

81.8% 3.6% 5.4% 5.8% 2.0% 0.8% 0.5%

Belton ISD 2012 Budget By Major Object Category

General Fund

Salaries & Benefits Contracted Services Utilities & Fuel Supplies & Materials Other Operating Costs Debt Service Capital Outlay Local Property Tax Revenue, $24,060,000 , 35.6% Other Local Revenue, $613,000 , 0.9% State Aid, $42,338,084 , 62.7% Federal Revenue, $524,000 , 0.8%

Belton ISD Revenue by Source General Fund

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The new year personnel cost estimates will rely on enrollment projections at the

elementary level and master schedules that are built at the secondary campuses as well as other personnel needs. The Human Resources department maintains personnel data in the financial software personnel system through the current school year. This data is

transferred to the budget system each spring for planning. Recommendations are made each year and approved by the Board for salary increases as well as for new positions to support the District’s goals, growth and enrollment. The remaining budget appropriations are allocated each year for services, supplies, debt service, capital outlay, and other operating costs.

Expenditures are estimated and budgets prepared by the various budget managers throughout the District and submitted to the Business Office based on the parameters specific to each given program, campus, or department. These budgets are entered into the budget system and balanced to the available revenue in the General Fund. The Administrative Team reviews the budgets submitted by the budget and program

managers for the appropriateness of proposed expenditures in meeting stated program or department objectives and District goals. The Administrative Team reviews non-allocated special requests for capital outlay, maintenance, and program requests and assigns a funding priority for each request.

Adjustments to the budget are made continually, based on the latest relevant information, and presented through meetings and budget workshops as the budget is prepared for adoption. Under the current school finance system the District’s count of weighted students in average daily attendance is the primary driver of General Fund revenues. The District works with the Bell County Tax Appraisal District to prepare values for the tax roles and to prepare information for the required public hearing to discuss the budget and proposed tax rate for the new school year. The budget currently must be prepared by August 20 of each year and adopted by August 31.

Budget Priorities:

Improving instruction

Improving student achievement

Maintaining instructional priorities and programs Maintaining competitive salaries

Implementing and monitoring well-defined processes Maintaining effective and efficient operations

Issues specific to the 2013 budget process:

The State economy is improving but budget cuts instituted in the 2011 legislative session continue in the 2013 school year. No change is expected in the next legislative session to restore the funding cuts.

Inflationary cost drivers will continue to increase costs. These include items such as utilities, insurance, and fuel.

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The District strives to maintain a competitive compensation plan through its percent of mid-point pay system.

Increasing student enrollment may require additional instructional and support staff.

Technology and other capital outlay needs will increase as growth continues. New campuses will be needed to address student growth.

Maintaining adequate and appropriate fund balance level is a priority.

Unfunded mandates and greater accountability standards continue to impact local expenditures.

The District is at the $1.17 cap on the M&O tax rate and cannot raise additional discretionary funds under the current school finance system.

Low rates on invested balances represent a significant reduction in local revenues. The District is property-poor. State aid accounts for 65% of the current year’s

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Belton ISD - Budget Development Calendar 2013 Budget Year

Target Date Activity/Process Responsibility

January Comptroller's preliminary 2011 CPTD value study State Comptroller

(for State funding) - Local value is approved

February-March Expenditure projections based on major expense drivers Business Office

February-April Begin budget preparation - campus/department budget managers Principals/Directors/Staff

including one-time, program, maintenance, and technology requests

Early April Budget Managers Meetings with the Administrative Team Administrative Team

April 16 Regular Board Meeting, Budget Workshop; calendar, values, revenue School Board

April Preliminary review of campus/department budget requests, Superintendent, Adm. Team

April DWEIC Meeting - Outline budget process

April - May Bell County Tax Appraisal District delivers preliminary taxable values Tax Appraisal District

(District calculates local tax revenue for the new year, reviews WADA assumptions for State revenue)

May Review of preliminary District budget Superintendent, Adm. Team

June 18 Regular Board meeting, Budget Workshop - Review of School Board

first draft of budget, staffing plan and salaries

June - July Finalize federal and special revenue budgets with TEA Business Office, Directors

planning amounts including estimated roll forward amount.

June - July Comptroller's certified 2011 CPTD value assigned Comptroller's Office

Calculate final State revenue totals and apply to budget

July Bell County Tax Appraisal District certified taxable values Tax Appraisal District

Calculate final tax revenue totals and apply to budget

July 16 Regular Board meeting, Budget Workshop - Second draft of budget School Board

Set public meeting time to discuss budget and proposed tax rate

July - August Called meeting to propose tax rates for the new-year. School Board

(depends on receipt of certified values from the appraisal district)

August 8 "Notice of Public Meeting To Discuss Budget And Proposed Tax Rate Board President

published." (10 to 30 days before mtg.) Business Office

August Official public budget hearing School Board

August 20 Regular Board meeting, budget and tax rate adopted School Board

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General Fund

The General Fund (Maintenance and Operations) is used to account for all financial transactions not

properly included in other funds. The principal sources of revenue include local property taxes, state revenue and some federal aid. Expenditures include all costs associated with the daily operations of the schools with the exception of the Child Nutrition department.

Local M&O Revenue

Revenue from local sources makes up 37.1% of the

District’s General Fund revenue. State Aid makes up most of the balance of the

$67,535,084 General Fund budget total that was adopted for 2012. Revenue from local sources is comprised of tax receipts, interest earnings, gate receipts, tuition, rent, and other miscellaneous revenue. The significant sources of local revenue are described below.

Tax receipts are budgeted at a 98.5% collection rate including delinquent collections. In 2011, audited collections came in at 99.60% of the levy, including delinquent collections. This is just above the 99.26% average for the previous five years. For 2012,

$23,930,000 is budgeted for M&O tax collections. $150,000 is budgeted for penalties and interest. Penalties and interest are not considered tax collections as audited and reported.

Interest earnings on the General Fund invested balances have been a significant sources of revenue to the District. Earnings over the last several years have fallen dramatically. In the short-term interest rates are expected to remain low.

2009 Interest earnings - $176,669 2010 Interest earnings - $ 41,448 2011 Interest earnings - $ 37,214 2012 Projection - $ 30,000

Gate receipts for athletic events average $230,000 each year. The total is impacted largely by football gate receipts. Season ticket sales in August of each year are recorded in new year, September 1st, revenues as an audit adjustment. The gate receipts are recorded in two different funds, the General Fund and a debt service fund, Fund 515.

The District used a revenue bond to finance construction of the multi-sport facility at Belton High School. A revenue bond does not require voter approval but a revenue stream, the gate receipts, must be pledged as the means for payment of the debt service. The last payment on that debt is due in the 2025 school

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year. Voter approved debt for facilities is financed by the Interest & Sinking (debt service) tax rate.

2009 Gate Receipts - $ 194,742 2010 Gate Receipts - $ 205,840 2011 Gate Receipts - $ 281,992 2012 Projection - $ 240,000

Tuition paid by transfer students is collected primarily from August through December. Tuition payments received in August of each year are recorded in new year, September 1st, receipts as an audit adjustment. Tuition is also received for high school summer school electives. Transfer Students 2009 School Year - $ 88,146 2010 School Year - $ 84,845 2011 School Year - $ 91,832 2012 Projection - $ 99,500

Rent is collected for the use of school facilities by churches and other local groups and organizations. Payments from UMHB for the use of the football field are not included in these totals. For the current school year the UMHB payment is $40,000. Payments will continue through 2014 under the current agreement.

2009 Rent Receipts - $ 39,116 2010 Rent Receipts - $ 42,403 2011 Rent Receipts - $ 79,830 2012 Projected - $ 85,146

State M&O Revenue

A special legislative session was called in 2006 to address the State tax system and public school funding. The special legislative session resulted in significant changes to the State tax system. The manner in which the District’s total Maintenance & Operating funding was calculated for the 2006-2007 and following school-years also changed. The same weighted funding system was used to distribute State education funds, but the guaranteed yield and basic allotment were increased at that time.

This was done to increase the State’s share of the District’s funding and to replace the local tax revenue lost through the reduction in the property tax rate for schools (tax rate compression).

School Year Maintenance Tax Rate

2005-2006 $1.50

2006-2007 $1.37

2007-2008 $1.04

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The funding formulas allowed the District to receive sufficient funds to maintain its revenue per student in Weighted Average Daily Attendance (WADA) at that time. New discretionary funds were only available with the new “super” pennies of equalized funding.

For the 2009 school year the Board approved a Maintenance and Operating tax rate of $1.17 to access the remaining available 13 pennies of equalized enrichment funding provided by the State. The subsequent Tax Ratification Election was successful. The Maintenance and Operating tax rate of $1.17 continues in the current year.

School funding formulas were modified in the most recent legislative session to cut public education by approximately $5.4 billion. Cuts to Belton ISD for the 2012 school year totaled approximately $4 million.

How the State funds this system is being challenged through several lawsuits. Legislative change as a result of the litigation is not expected in the next legislative session for the 2013-2015 biennium. Inequities remain in the system that continue to allow property wealthy school districts an advantage at each level of funding.

The Foundation School Program

The Foundation School Program has two main components, operations funding and facilities funding, each of which is tied to the tax efforts of school districts. These components provide funding for school district operations and for school facilities. The operations funding component of the FSP provides school districts with assistance in financing their maintenance and operations based on the following three components:

o Tier I of the FSP provides school districts a basic level of funding with allotments for regular education; special education; compensatory education, including Pregnancy Related Services; career and technical education; bilingual / English as a Second Language education; gifted and talented education; and public education grants. This tier also includes allotments for transportation, new instructional facilities, and the Texas Virtual School Network as well as an allotment for specialized programs at the high school level. Additional compensatory education funds may be available to serve students who are military dependents.

o Tier II of the FSP is intended to supplement the basic funding provided by Tier I. Tier II guarantees a specific amount of funding per student in weighted average daily attendance for each penny of a school district’s tax effort above a specified level. The funding provided by this additional tax effort is also referred to as enrichment.

o Revenue at the compressed tax rate, provided for in the property-tax-relief law that was passed in 2006 and modified in 2009, guarantees school districts a set amount of funds per student in weighted average daily attendance to compensate for a mandatory reduction in, or

compression of, their local maintenance and operations (M&O) tax rates from rates that were adopted in 2005.

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Estimates for the new budget year’s State M&O revenue under the current school finance system are made using the latest Summary of Finance template for SB1. Using the current demographic data along with historical trends for students, taxable values, and tax collections can give a good indication of expected new-year state revenues.

Revenue from state sources makes up about 65% of this year’s General Fund revenue. The basic calculations of the state education funding formula have not changed for many years. However, the tax rate compression and new values used for the basic allotment have skewed the values for the State program allotments that the District earns for programs such as Compensatory Education and Special Education.

To adjust for this, the State has adjusted the program expenditure requirements for these programs from the 85% level to 55% for all programs except Career & Technology. The spending requirement for this program was changed from 90% to 60%.

The state share of the District’s Maintenance and Operating (M&O) funding generally drops each year as the District’s property wealth increases.

Federal M&O Funding

The majority of federal funding the District receives comes in the form of special revenue grants such as Title I (Fund 211) and IDEA B (Fund 224). Education Jobs funding is also a significant funding source in the current year.

The General Fund (Fund 199) federal revenues include the Medicaid reimbursement the District receives for qualified services provided to our special education students at school district expense. These reimbursement funds are used to support special education and other programs at the District. The significant increase in receipts is due to changes in the program itself and in the number of services the District has requested

reimbursement for.

2009 Medicaid Receipts - $ 74,649 2010 Medicaid Receipts - $ 336,556 2011 Medicaid Receipts - $ 676,287 2012 Projected - $ 750,000

Other General Fund federal receipts include our Impact Aid, flood control funds, and MJROTC program reimbursement. Impact Aid receipts are approximately $60,000 a year. The flood control funds are approximately $17,000 a year. Discretionary grants received in the past have been generally less than $5000 and occasionally as large as $50,000. They have included the Smaller Learning Communities grants and the LRE Pre-School Special Education grants.

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General Fund Revenue & Expenditure History

2006 2007 2008 2009 2010 2011

Beginning Balance 8,989,236 8,181,901 # 10,538,280 11,705,177 13,757,847 16,491,000

Revenues:

Local & Intermediate Sources 19,976,038 21,405,946 18,497,909 22,330,279 23,241,866 24,316,249

Revenue from State Sources 27,361,217 30,323,723 37,085,790 39,425,529 40,082,598 42,188,362

Revenue form Federal Sources 188,744 168,872 138,315 330,075 650,767 965,634

Total Revenues 47,525,999 51,898,541 55,722,014 62,085,883 63,975,231 67,470,245

Expenditures:

Instruction 25,929,518 26,654,718 29,282,920 31,859,711 32,273,392 34,320,084

Instructional Resources & Media 735,156 752,700 819,362 892,859 916,096 879,929

Curriculum & Staff Development 241,588 600,168 656,861 548,586 908,658 901,341

Instructional leadership 1,148,019 1,295,918 1,345,877 1,505,256 1,464,301 1,494,146

School leadership 2,825,397 3,144,858 3,223,491 3,463,607 3,615,895 3,764,439

Guidance, counseling, & evaluation serv 1,666,038 1,946,469 1,987,535 2,031,210 2,154,079 2,248,344

Social work services 174,787 298,166 326,092 298,735 297,672 346,571

Health services 564,333 602,548 656,894 704,688 752,809 806,439

Student transportation 2,354,420 2,545,654 2,937,453 3,228,642 3,493,173 2,955,119

Cocurricular/extracurricular activities 1,654,912 1,796,924 2,086,589 2,297,789 2,542,008 2,655,975

General administration 1,533,255 1,710,595 1,777,709 1,864,436 2,042,787 2,223,701

Plant Maintenance & Operations 6,205,134 6,666,504 7,917,520 7,833,833 8,218,844 8,459,170

Security and monitoring services 229,897 236,461 239,601 260,333 311,607 352,304

Data Processing 1,026,353 1,176,409 1,262,802 1,659,286 1,286,724 1,504,102

Community Services 66,705 72,192 116,022 159,285 192,034 214,959

Debt service 258,345 574,106 433,878 611,398 614,737 675,658

Facilities acquisition and construction 2,260,444 601,680 62,765 1,815,186 1,202,904 2,057,422

Payments to fiscal agent 16,666 0 0 0 0 0

Payments to JJAEP 33,516 48,510 64,025 49,335 75,592 28,040

Total Expenditures 48,924,483 50,724,580 55,197,396 61,084,175 62,363,312 65,887,743

Net Revenues (1,398,484) 1,173,961 524,618 1,001,708 1,611,919 1,582,502

Other Financing Sources (Uses) 591,149 1,182,418 642,279 1,050,962 1,121,234 0

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2005 2006 2007 2008 2009 2010 2011 Paid - Lunch 238,364 258,176 308,073 368,897 376,526 414,581 487,024 Reduced 87,418 96,280 104,152 109,776 110,641 118,491 107,850 Free 370,046 371,631 395,261 414,272 451,661 500,991 550,815 0 100,000 200,000 300,000 400,000 500,000 600,000

Belton ISD Lunch Count

Paid - Lunch Reduced Free Child Nutrition Fund

The Child Nutrition Fund, Fund 240, is a special revenue fund solely for the operation of the District’s school food services. The department employs 121 personnel who feed over 1,600,000 meals to students each year. For the past several years the

department has remained self sufficient and has built a solid fund balance to invest in new equipment for the program and for

contingencies.

The department has previously undergone a management review to study the programs operations and efficiencies. There were many good things reported as a result as well as valuable suggestions for program improvements. The department regularly scores high on the required regulatory visits to monitor the programs procedures and processes. A networked point-of-service system is used to bank student’s meal money, to facilitate checkout times at the registers during meals, and to report on meal counts for federal reimbursements. A new freezer for commodity program food has been added to the Support Services facility. The department also offers a summer feeding program in and around the District.

The percent of students District-wide who are eligible for a free or reduced price meal is over 45%. As the District’s count of eligible free and reduced students grows, the

District’s ability to operate with a fund balance will continue to improve. Counting and verifying these student applications is an important annual process for the department. The

count not only affects federal reimbursements received for this program, but is used for the State General Fund allotment for Compensatory Education (at-risk students) as well.

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For campuses with a free and reduced student count of over 70% the Breakfast In The Classroom program has been implemented. This program allows the District to feed all students at the campus a free breakfast. The National School Breakfast Program

reimbursement for the free and reduced price meals covers the cost of the program and improves profitability for the program as a whole.

Revenue

The program receives its revenue largely from local paid meal revenues and federal reimbursements for meals for free and reduced eligible students. Federal aid is also received in the form of commodity foods received free from the federal government. Several of these items are processed at a cost to the District. The cost is generally less than the cost of purchasing a similar fully prepared food item. The value of these items is booked as revenue to the program and contributes to the overall efficiency of the

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Child Nutrition Fund Revenue & Expenditure History

2006 2007 2008 2009 2010 0 2011

Beginning Balance 342,613 532,470 293,575 500,656 617,590 832,412

Revenues:

Revenue from State Sources 106,444 99,221 96,917 96,374 97,985 101,466

Revenue form Federal Sources 1,720,625 1,692,027 2,014,771 2,169,371 2,591,443 2,771,314

Total Revenues 3,175,072 3,063,653 3,614,415 3,941,485 4,282,773 4,490,252

Expenditures:

Child Nutrition Services 2,985,215 3,302,548 3,407,334 3,824,551 4,067,951 4,462,560

Net Revenues 189,857 (238,895) 207,081 116,934 214,822 27,692

Other Financing Sources (Uses) 0 0 0 0

Ending Balance 532,470 293,575 500,656 617,590 832,412 860,104

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Debt Service Fund

The Debt Service Funds account for the payments of principal, interest, and related fees on the District’s revenue (Fund 515) and general obligation (Fund 511) bonds. Voter approved debt service payments are charged to the Interest & Sinking (I&S) fund, Fund 511. Revenue for Fund 511 is received from the I&S property tax, the State Instructional Facilities Allotment (IFA), and the Existing Debt Allotment (EDA) programs. EDA and IFA funding combined now account for or pay approximately 37% of the eligible debt service. New debt service generally rolls into the State EDA program in the biennium following the year in which the first payment is made on the debt. As the District’s property values increase the State award for these programs decreases.

The District’s bonds presently carry a favorable rating with Moody’s Investment Service and with Standard and Poor’s Investor Service.

Instructional Facilities Allotment Program

House Bill 4, originally enacted during the 1997 Legislative session, provided state funding for new instructional school facilities (IFA). This program provides a guaranteed level ($35) of State and local funds per student per penny of tax effort applicable to debt service on eligible bonds. However, limited funds have been appropriated for this program each biennium so districts must apply for funding when it is available. The two Belton bond issues prior to the 2004 bond issue, Lake Belton Middle School and Joe M Pirtle Elementary, qualified for this IFA funding. The 2012 budget includes $358,000 in IFA funding.

Existing Debt Allotment

Additional state funding for existing debt was first granted during the 1999 legislative session – the Existing Debt Allotment (EDA). This allotment guarantees $35 per student in state and local funds for each cent of tax effort (subject to a maximum) to pay the principal and interest on eligible bonds. EDA is a significant source of revenue from the state for the District. The 2012 budget includes $2,220,620 in EDA funding.

Debt Service Expenditures

The 2011-2012 expenditure budget consists of the following amounts: $3,475,000 for bond principal payments and $3,715,587, for bond interest and fee payments. No major assumptions are made for these yearly expenditures, since the amounts are based on debt that has already been issued and scheduled. Historically, the District’s Administration and Board have followed the advice of financial advisors and structured debt with a principal retirement schedule that allows the District to continue to issue bonds without significant increases in the debt service tax rate.

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Debt Service (I&S) Fund Revenue & Expenditure History

2006 2007 2008 2009 2010 2011

Beginning Balance 126,804 406,567 634,763 1,082,226 1,388,713 1,722,851

Revenues:

Revenue from State Sources 3,116,821 2,822,675 3,363,856 3,113,973 2,675,026 2,064,530

Revenue form Federal Sources 0 0 0

Total Revenues 5,973,043 7,192,284 7,473,673 7,551,815 7,311,010 7,067,948

Expenditures:

Principal on long term debt 3,155,000 3,295,000 3,625,000 4,030,000 4,155,000 2,339,991

Interest on long term debt 2,528,571 3,664,625 3,381,154 3,201,738 2,997,011 5,306,726

Bond issuance cost and fees 9,709 4,463 20,056 13,590 70,983 7,925

Net Revenues 279,763 228,196 447,463 306,487 88,016 (586,694)

Other Financing Sources (Uses) 0 0 0 0 246,122 0

Ending Balance 406,567 634,763 1,082,226 1,388,713 1,722,851 1,136,157

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Belton Independent School District

Aggregate Unlimited Tax Debt Service Annual Basis

Aggregate Debt Service

Date Principal Interest Total P+I

08/31/2011 - - -08/31/2012 3,410,000.00 3,683,675.69 7,093,675.69 08/31/2013 3,365,000.00 3,612,263.77 6,977,263.77 08/31/2014 3,420,000.00 3,479,351.52 6,899,351.52 08/31/2015 3,560,000.00 3,340,347.52 6,900,347.52 08/31/2016 3,720,000.00 3,191,530.02 6,911,530.02 08/31/2017 3,890,000.00 3,034,261.52 6,924,261.52 08/31/2018 4,050,000.00 2,865,843.52 6,915,843.52 08/31/2019 3,430,000.00 2,678,145.02 6,108,145.02 08/31/2020 2,904,996.20 3,201,216.32 6,106,212.52 08/31/2021 3,695,000.00 2,416,675.02 6,111,675.02 08/31/2022 3,835,000.00 2,269,412.52 6,104,412.52 08/31/2023 3,990,000.00 2,119,437.52 6,109,437.52 08/31/2024 4,250,000.00 1,948,456.27 6,198,456.27 08/31/2025 4,445,000.00 1,755,118.77 6,200,118.77 08/31/2026 4,655,000.00 1,542,437.52 6,197,437.52 08/31/2027 4,885,000.00 1,309,212.52 6,194,212.52 08/31/2028 5,135,000.00 1,064,243.77 6,199,243.77 08/31/2029 5,385,000.00 807,937.52 6,192,937.52 08/31/2030 3,170,000.00 598,865.64 3,768,865.64 08/31/2031 3,330,000.00 438,293.76 3,768,293.76 08/31/2032 1,840,000.00 310,031.26 2,150,031.26 08/31/2033 1,925,000.00 221,921.88 2,146,921.88 08/31/2034 2,010,000.00 135,843.75 2,145,843.75 08/31/2035 2,100,000.00 45,937.50 2,145,937.50 Total $86,399,996.20 $46,070,460.12 $132,470,456.32

Par Amounts Of Selected Issues

5 7,210,000.00

6 20,710,000.00

10 $29mm (3/1) FINAL 27,680,000.00

10 ref FINAL (3/17) 1,560,000.00

11 u/t ref FINAL (12/5) 7,004,996.20

04 -after ref -NM 22,235,000.00

TOTAL 86,399,996.20

Aggregate | 1/ 3/2012 | 4:14 PM

Specialized Public Finance Inc.

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Construction Funds

The District’s bond proceeds are accounted for in the 600 series of funds. The proceeds are fully invested and carried as fund balances until they are needed for the costs of construction. Interest proceeds are monitored

annually for positive arbitrage earnings on investments. Any positive arbitrage earned is not considered for

construction expenditures so that the required payments to the IRS may be made from those earnings.

The District utilizes industry professionals and local committees to plan for the growth that is occurring in the area. Since 2002 the District has continually planned for growth through its ongoing Long Range Facilities Planning committee. Facility and demographic studies are used to facilitate planning. The District continues to monitor growth and student populations with its Transfinder software program. This system is used to set the District’s attendance boundaries and it is the primary tool for the efficient routing of buses for student transportation needs.

Through the Long Range Facilities Planning committee meetings the District has recommended three bond issues in recent years that have been passed by voters. Major improvements and classroom additions to the high school, two middle schools, and two elementary schools were included in the first bond issue in 2004. As the result of the second bond issue in 2006, an eighth

elementary school campus opened its doors at the beginning of the 2008 school year. In addition, this bond has provided for a new swim center, the Tyler

Elementary kitchen renovation, the Sparta Elementary core expansion, and several civil projects. The most recent 2010 bond issue built the South Belton Middle

School. A May election has been called for the construction of two elementary schools and a middle school to address capacity issues.

Budget Administration and Management Process

Adoption of the official budget by the Board of Trustees is only the first step in the budget process. Following adoption, the budget administration and management process begins. The budget administration and management process is the process of regulating

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expenditures throughout the fiscal year to ensure that they do not exceed authorized amounts and that they are used for intended, proper, and legal purposes.

Expenditures, Controls, and Approvals

Expenditure appropriations are allocated between approximately 30 organizations or cost centers (campuses, departments, divisions, etc.). Each organization is assigned a budget manager (i.e. principal, department head). The budget manager is accountable for their organization’s portion of the General Fund budget. Each budget manager is authorized to approve the expenditure of funds within their respective organization, provided that funds are expended in accordance with District purchasing procedures and legal requirements

This is accomplished through the use of the standard account code system prescribed by the Texas Education Agency, which includes an organization code. This code system is described in detail within this document. Each budget manager (or designee) is granted on-line access to the accounting codes for their organization. This access includes purchase order and account inquiry capabilities.

When fixed costs such as salaries, benefits, utilities, and fuel are set aside, the remainder of the funds available for discretionary expenditures is small in comparison. Expenditures for these services, supplies, travel, training, and other costs to support the goals of the District are approximately 13% of the General Fund budget.

These discretionary expenditure appropriations are managed by the budget managers. The budget manager is accountable for their organization’s portion of the budget. Each budget manager is authorized to approve the expenditure of funds within their respective organization, provided that funds are expended in accordance with District purchasing procedures and legal requirements.

The District’s Administrative Cost Ratio has been consistently less than the standard allowable of 12.5%, set on administrative expenditures by the Texas Education Agency. The last calculated rate was 9.63%. This ratio compares the cost for administration to the costs for instructional and counseling services.

Purchasing

The Board of Trustees approves all bid awards of $50,000 or more and individual purchases of $50,000 (2nd reading of policy in April) or more. Purchase orders are prepared for all purchases. Once a supply requisition is entered and approved at the campus/department level, the requisitions are reviewed by the purchasing director for verification of compliance with legal purchasing procedures. Once the Purchasing

Director approves the requisition, an encumbrance to the account(s) designated will post. Encumbrances are reservations of appropriations for open purchase orders for goods that have not yet been received. The purpose of the encumbrance is to insure that obligations are recognized as soon as financial commitments are made in order to prevent inadvertent over expenditure of funds due to lack of information about future commitments. The Purchasing department then prints and sends the resulting purchase orders to the appropriate department so that they may place their order.

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The goods ordered are generally received at the respective locations placing the order. Once the campus or department has matched the invoice to items received, they submit the invoice and purchase order to the Accounts Payable department for payment. The Comptroller and Accounts Payable staff verify that all policies have been followed, proper documentation has been presented for payment, and that the account codes coincide with the items or service received. Payments are then made to the respective vendors.

Payment Authorizations and Travel Forms

Payment Authorizations are used for the payment of miscellaneous items such as workmen’s compensation insurance payments, sales tax remittance, and refund of fees charged, etc. Pre-approved travel vouchers are used for payment of meals, mileage, registration, lodging, airfare, etc. relating to employee travel. Payment Authorizations and Travel Vouchers, along with the appropriate supporting documentation are forwarded to the Business Office for verification, approval, and payment.

Amending the Budget

After the District budget has been adopted, it is sometimes necessary for the District or a budget manager to reclassify or make changes to the line item budgets under their responsibility. Since the budget is legally adopted at the fund and function level, the Board of Trustees must approve any budget amendments that transfer funds between funds or functions or that increase or decrease District budget totals. For example, appropriations for Instruction, Function 11, cannot be transferred to an administrative function, Function 23, without Board approval. All other required transfers that do not involve fund or function changes are reviewed, approved, and processed by the Business Office.

For a change that does not increase/decrease the total District budget or function totals, a Budget Change Request Form should be completed and submitted to the Business Office for processing. This allows budget managers to move budget amounts between line item accounts within one function and from one object code category (supplies, services…) to another. A copy of the form with signatures and justification will be kept on file for audit purposes. One copy will be returned to the budget manager.

For a change that does increase/decrease the total District budget or which moves budget amounts from one function to another, Board approval is necessary. A Budget

Amendment Request Form is completed and submitted to the Business Office. This form is due to the Business Office by the Wednesday before the Monday on which Board materials are due to the Superintendent’s office.

Amendments moving budgeted amounts between Instructional, Administrative, and Student Support functions are common examples of this type of amendment. Donations to the District intended to increase expenditures and increases/decreases to grant funds are also common.

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Monitoring the Budget

The District’s Pentamation finance system provides many useful tools and reports to Business Office personnel and budget managers in administering, monitoring, and controlling the implementation of the budget. This system provides many checks on account balances to ensure that funds are not over expended at the budgetary level. If sufficient funds are not available at the budgetary account level, purchase orders cannot be generated. The Business Office and budget managers monitor comparisons between budget and actual expenditures to maintain cost control and to protect against

overspending for payroll and related accounts

On a monthly basis, management reviews financial reports generated by the District’s financial accounting system, and those reports generated for the monthly financial report to the Board. At any period of time during the year comparisons to the prior year can be made by functional category and financial projections through the end of the fiscal year can be modeled with the District’s cash flow projection report. These and other processes for reviewing projected year-end expenditure levels, as well as current expenditure levels, provide an increased level of comfort in assuring budgetary compliance.

Reporting to the Texas Education Agency (TEA)

The District’s current year budget must be submitted annually to TEA through the Public Education Information Management System (PEIMS) transmission process as part of the fall submission each year. TEA monitors for compliance at the District level only. This monitoring is a legal requirement to ensure mandatory expenditure levels in certain program areas. In addition, actual audited expenditures are submitted through the PEIMS system each year in the winter submission for the prior school year.

Financial Structure and Basis of Accounting

The Belton Independent School District is an independent public educational agency operating under applicable laws and regulations of the State of Texas. A seven member Board of Trustees elected to staggered three-year terms by the District’s residents autonomously governs the District. TEA provides the District’s K-12 education accreditation.

Fund Accounting

The funds and accounts of the District have been established under the rules prescribed in the Financial Accounting and Reporting Module of the TEA’s Financial Accountability System Resource Guide (the “Resource Guide”). This budget document contains detailed information for all funds for which the Board of Trustees is required to adopt annual budgets. Budgets for all funds are prepared using the same method of accounting as for financial reports (modified accrual), except for the Capital Projects Fund budget. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available, except for principal and interest on general long-term debt, which is recognized when due. Following is a description of the funds for which annual budgets are adopted.

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General Fund

The General Fund is used to account for all financial transactions not properly includable in other funds. The principal sources of revenue include local property taxes, state revenues, some federal revenues, and interest on fund investments. Expenditures include all costs necessary for the daily operation of the schools except for the school food services.

Child Nutrition Fund

The Child Nutrition Fund is used to account for all the District’s food service programs, including local, state, and federal revenue sources and all costs associated with the operation of the program.

Debt Service Fund

The Debt Service Fund is used to account for the payment of interest and principal on all voter approved bonds of the District. The primary sources of revenue for the debt service fund are local property taxes and the State instructional facilities and existing debt allotments.

Classification of Revenues and Expenditures

Texas Education Code Section 44.007 requires that a standard school district fiscal accounting system be adopted by each school district. The system must meet at least the minimum requirements prescribed by the State Commissioner and also be subject to review and comment by the state auditor. Additionally, the accounting system must conform with Generally Accepted Accounting Principles (GAAP). A major purpose of the accounting code structure is to establish the standard school district fiscal accounting system required by law. Although certain codes within the overview may be used at local option, the sequence of the codes within the structure, and the funds and chart of

accounts, are to be uniformly used by all school districts in accordance with GAAP.

Revenues in our Texas school accounting system are divided into three categories. Local (5700), State (5800), and Federal (5900) receipts are the most common. A fourth

category of receipts is the Other Resources (7900) category. These are considered non-operating revenues. Examples include receipts for the sale of real and personal property, operating transfers from other fund categories, lease proceeds, and other infrequent material items.

Expenditure budgets are legally adopted at the fund and function level. Major object codes are used to describe the type of items purchased or services obtained. The major object codes are: payroll and related costs (6100), purchased and contracted services (6200), supplies and materials (6300), other operating expenditures (6400), debt service (6500) and capital outlay (6600).

Basic System Expenditure Code Composition: 1993-11-001-11-001—6399000

Fund Code 199, General Fund – A mandatory 3-digit code is to be used for all financial transactions to identify the fund group and specific funds. The first digit refers to the fund group, and the second and third digits specify the fund.

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Fiscal Year Code 3, 2013 – A mandatory single digit code that identifies the fiscal year of the transaction or the project year of inception of a grant project.

Function Code 11, Instruction – A mandatory 2-digit code that identifies the purpose of the transaction is applied to expenditures. The first digit identifies the major service area and the second digit refers to the specific function within the area.

Organization Code 001, High School – A mandatory 3-digit code identifying the organization, i.e., campus, department.

Program Intent Code 11, Instruction – A mandatory 2-digit code used to designate services provided to students (GT, CATE, Special Education…)

Budget Manager Code 001, High School – An optional Pentamation 3-digit code identifying the organization, i.e., campus, department. “999” is used for all 61XX payroll codes.

Object Code 6399, Supplies – A mandatory 4-digit code identifying the nature and object of an account, a transaction or a source. The first of the four digits identifies the type of account or transaction, the second digit identifies the major area, and the third and fourth digits provide further sub-classifications.

Sub-Object 000, General Account – Optional 3-digit code used at Belton ISD to provide additional accountability for certain programs or areas.

Significant Financial Policies and Procedures

The District prepares its basic financial statements in conformity with generally accepted accounting principles promulgated by the Governmental Accounting Standards Board, and complies with the requirements of the appropriate version of the Resource Guide and the requirements of contracts and grants of agencies from which it receives funds.

The following financial policies and procedures of the District significantly influence the development of the annual budget.

Cash Management

The District’s cash management goals are as follows:  Insure proper collateralization of deposits.

 Insure adequate balances to cover cash disbursement needs.  Maximize interest earnings.

 Minimize bank charges.

These goals are accomplished by keeping bank balances as low as possible through transferring all available dollars into one of the investment pools used by the District.

Cash Balances are monitored daily by the District through online banking. Using this system allows accounting personnel to minimize bank balances by only transferring into the accounts the funds necessary to cover the dollar amount for accounts payable and payroll checks that have been paid or are outstanding. This keeps the low interest bearing bank balances at a minimum, thus maximizing interest earnings.

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Investment Policies

The Board of Trustees has adopted a written investment policy regarding the investment of its funds as defined in the Public Funds Investment Act of 1995. This policy authorizes the District to invest in obligations of the U.S. Treasury, the State of Texas, and certain U.S. Agencies. The District may also invest in certificates of deposit, repurchase

agreements, commercial paper, no-load money market and no-load mutual funds, public funds investment pools and banker’s acceptances as permitted by Chapter 2256, Texas Government Code.

The main goal of the investment program is to ensure its safety, as well as to maximize financial returns within current market conditions in accordance with the District’s

investment policy. Investments shall be made in a manner that ensures the preservation of capital in the overall portfolio, and offsets during a 12-month period any market price losses resulting from interest-rate fluctuations by income received from the balance of the portfolio. No individual investment transaction shall be undertaken that jeopardizes the total capital position of the overall portfolio.

Monitoring is performed monthly as investment reports are submitted to the Board of Trustees for review. In addition, the District investment officer annually presents a comprehensive report on the investment program and investment activity. The District’s investment officers also regularly communicate with industry professionals and financial advisors. The financial press is also an important monitoring tool for investments.

Financial Strength

One measure of a District’s financial strength is its ability to pay for its ongoing current year accounts payable and payroll obligations without having to borrow funds. The District uses its General Fund, fund balance, to help meet these cash flow needs. School districts carry these balances to pay obligations due when the State delays revenue payments, when scheduled State revenue payments don’t meet cash flow needs, and until tax collections are realized each year. Fund balances may also be used for emergency expenditures due to unexpected events and for planned one-time expenditures. Fund balances can be a significant source of General Fund interest revenue.

Reserve Policies

 General Fund – The District strives to maintain a general fund balance equal to approximately 20 to 25% of General Fund expenditures sufficient to maintain fiscal independence in the event of a financial need or crisis.

 Debt Service Fund – The District maintains a debt service fund balance. If the fund balance exceeds 1/12th of the previous year’s required principal and interest payments for all the outstanding bonds, the excess is considered a reserve and is subject to rebate under arbitrage regulations. This fund balance may be used to reduce the District’s outstanding debt service.

 Child Nutrition Fund – Fund balances for food service should not exceed three months of average food service operations expenditures.

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Property Taxes

Property tax rates are set following the Truth-In-Taxation guidelines published by the State Comptroller for school districts and other taxing entities. The primary goal of the materials is to make the procedure for setting property tax rates as transparent as possible, keeping the public informed of changes, and especially increases in the level of taxes collected. Appendix C contains an overview from those guidelines.

Property taxes are levied by October 1st on the assessed value listed as of the prior January 1 for all real and business personal property located in the District in conformity with Subtitle E, Texas Property Tax Code. Taxes are due on receipt of the tax bill and are delinquent if not paid before February 1st of the year following the year in which

imposed. On January 31st of each year, a tax lien attaches to property to secure the payment of all taxes, penalties, and interest ultimately imposed. Property tax revenues are considered available (1) when they become due or past due and receivable within the current period and (2) when they are expected to be collected during a 60-day period after the close of the school fiscal year.

The Bell County Tax Appraisal District provides for the appraisal and collection of current and delinquent taxes. The District and the City of Belton share a position on the appraisal district board to represent their interests. Tax receipts are transferred by the appraisal district directly to the School’s TexPool investment account to eliminate the need for the delivery and deposit of physical checks.

Loans and Leases

The District accounts for short-term debts through the appropriate funds. Short-term debts include notes and leases made in accordance with the provisions of the Texas Education Code. The proceeds from loans and leases are shown in the financial statements as Other Resources.

Debt Administration

Debt service is a major area of cost due to the District’s building program, which is primarily financed by the sale of general obligation bonds. The ratio of net tax supported debt to taxable assessed value for the District is 4.00%. Educational legislation has eliminated limits on outstanding debt. However, prior law limited debt to 10% of the assessed value, and the District is well below that level. Principal and interest payments are due February 15th and August 15th of each year. On February 1st of each year, outstanding taxes become delinquent, which promotes the collection of a large majority of taxes levied before the long-term debt payments are due.

Risk Management

The District’s risk management program encompasses various means of protecting the District against loss. The District has insurable risks in various areas, including property, casualty, automobile, comprehensive liability and worker’s compensation. Property, casualty, automobile, and comprehensive liability insurance, as well as worker’s compensation insurance, is provided by participation in a public entity risk pool administered by the Texas Association of School Boards.

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Legal Requirements of Budgeting

Sections 44.002 through 44.006 of the Texas Education Code establish the legal basis for budget development in school districts. The following items summarize the legal

requirements from the code:

The superintendent is the budget officer for the district and prepares or causes the budget to be prepared.

The district budget must be prepared by a date set be the State Board of Education, currently August 20.

The President of the Board of Trustees must call a public meeting of the Board of Trustees, giving ten days public notice in a newspaper, for the adoption of the district budget. Any taxpayer in the District may be present and participate in the meeting.

No funds may be expended in any manner other than as provided in the adopted budget. The Board does have the authority to amend the budget or adopt a supplementary emergency budget to cover unforeseen expenditures.

The budget must be prepared in accordance with GAAP and State guidelines.

Annual budgets must be prepared for the following funds: General Fund, Debt Service Fund, and Child Nutrition Special Revenue Fund. Minutes from the Board meetings will be used to record the adoption and amendments to the budget. The budget must be amended before exceeding a functional expenditure category.

Independent Audit and Financial Reporting

In accordance with Section 44.008, Texas Education Code, public school districts in Texas shall have their accounts audited annually. The audit shall be made on an organization-wide basis, and shall involve all fund types and accounts groups of the school district. The audit is also designed to meet the requirements of the Federal Single Audit Act of 1984 and the related provisions of OMB Circular A-133 “Audits of State, Local Governments, and Non-Profit Organizations.”

Once the annual audit is complete, it is submitted to TEA for review. This financial information is then submitted to TEA electronically through the annual mid-year PEIMS submission. These submissions are designed to meet the specific monitoring needs of TEA. The District is also required to publish one audit schedule each year in a local newspaper. This must be done before the 120th day after the end of the school year under audit.

Campus/Department Budget Manager Budget Preparation

Budget allocations are intended to meet the fiscal needs of each department and program with the exception of salary and benefit costs which are budgeted at the District level. The number and type of employees is coordinated with the Human Resources department and no change is made without that approval.

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Department budgets are prepared by the budget managers on the finance software system itself. Specific instructions and proposed budgeted amounts allocated to each campus or department will be submitted to each budget director with instructions and deadlines for completion. In addition to meeting the basic needs of each program allocations are intended to allow the budget manager to respond to departmental goals and objectives, to strengthen and existing program by targeting funds to identified needs and to be

accountable for decisions affecting allocation of resources.

All budget managers should be aware of any maintenance or other contracts that are billed on a regular basis for items such as copiers, software, internet/phone service, fee-based services or equipment. Amounts due for the new budget year should be verified with each vendor providing such a service for continuing contracts. Any contract renewals or new agreements must be approved through the General Counsel’s office. Budget managers or personnel with responsibility for major cost drivers (insurance, utilities, etc.) will receive special instructions for estimating the costs for the new budget year.

Most photocopiers in the District are leased for a four or five year term. The copier contracts have a variety of anniversary dates depending on when the individual copier was placed in service. Each campus/department is responsible for its copier’s cost. It is standard practice to replace copiers at the end of a lease, however, each copier placement is evaluated to determine the most appropriate size and speed of the new equipment for its intended location and use. Any new copier or replacement copier must be approved and signed off on by the Director of Purchasing. Copiers will not be considered for replacement if more than one year of the original lease term remains.

Most proposed budgets will be based on the previous year’s allocation. Areas of over/under spending will be evaluated in the current year.

Budget managers may request additional staff positions or one-time equipment, capital outlay, or facility improvement purchases by completing the appropriate forms in preparation for the annual department/campus budget meetings. This includes

computer/technology equipment and may be for individual or multiple item requests. Approval will be based on the amount of funding available for such purposes in the current year budget or the new-year budget. Approval or disapproval will be

communicated to the individual departments and campuses.

Campus Budgets (Function 11, 12, 13, 23, 31, 36) - Principals:

Resources: Prior and current year expenditure record, student counts, staff.

Local General Fund budget allocations to the campuses are intended to meet the fiscal needs of each campus with the exception of salary and benefit costs which are budgeted at the District level. The primary account code functions, or areas of budget

responsibility, for campus principals are Instruction (11), Media Services/Libraries (12), Staff Development (13), Campus Administration (23), Counseling (31), and

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Campus budget allocations for elementary and middle schools are based on a per-student allotment for the previously mentioned functions. In addition to the student counts, at the elementary schools, further consideration is made for campuses with more than 70% of at-risk students. Other special population needs at all campus levels are met through state program allotments and special revenue grants.

With enrollment changes from year to year, the amount allocated to individual

elementary campuses could differ appreciably from the current year, but will still reflect the number of students projected to be in attendance at each campus and the overall funds available/proposed.

Principals have the most discretion with the instructional, staff development, and campus office budgets and will make most budget changes or transfers in and between those functions. Instructions and forms for requesting budget changes are included in this 2012 Budget Process Book.

Funds have been added in recent years to the total dollar amount allocated to the campuses for the library and campus administration budgets to equalize the amounts between campuses on a per-student basis and to meet identified needs. The library allocations are based on the estimated number of students to be enrolled at the campus.

Functional Budgets (Function 21, 32, 33, 34, 35, 36, 41, 51, 52, 53, 61) – Budget Managers:

Resources: Historical data, district comparisons, department input.

Budget managers for these programs are identified with primarily one function, though there may be several budget managers within an individual function. Activities include Instructional Leadership(21), Social Work(32), Health Services(33), Transportation(34) Child Nutrition(35), Athletics/Fine Arts(36), Central Administration(41), Maintenance and Operations(51), Security(52), Data Processing(53), and Community Services(61).

State Programs (General Fund) – Program Directors:

Resources: Historical data, current year student ADA and FTEs, Summary of Finance Template, local budget templates, salary and benefit costs by employee.

These weighted programs include Gifted and Talented, Career and Technology, Special Education, Compensatory Education, and Bilingual/ESL.

State and Federal Special Revenue Grant Programs – Directors:

Resources: Historical data, local budget templates, salary and benefit costs by employee. Summary of Finance Template, Notice of Grant Awards.

Budgets are prepared but not adopted for the special revenue funds from State, Federal, and other sources. Special revenue funds are from specific sources and legally restricted to specific uses. Title I, Fund 211; special education IDEA B, Fund 224; Advanced Placement Incentives, Fund 397; and the State Technology Allotment, Fund 411 are examples.

Budget Process Manual

Table of Contents

Vision, Mission, & Goals

Aggregate Debt Service

Specialized Public Finance Inc.