HCSD BudgetingCommunity Report FY 2017 Don’t tell me where your priorities are. Show me where you spend your money and I’ll tell you what they are. James W. Frick

Humboldt County School District Tel 775-623-8100 Fax 775-623-8102

310 East Fourth Street Winnemucca, NV 89445

http://www.hcsdnv.com

Table of Contents

Contents Message from the Superintendent _______________________________________________ 1 Driving Goals and Objectives ___________________________________________________ 2 Where Do HCSD's Funds Come From ____________________________________________ 3 Funding Comparision _________________________________________________________ 7 Salaries and Benefits vs Total Expenditures ________________________________________ 8 Contact Information ___________________________________________________________ 9

Message from the Superintendent

Pg. 01

Budget Basics -There are two primary budgets for Humboldt

Message from the Superintendent Dear Humboldt Families, Employees, and Community Members,

County School District.

It is my sincere privilege to act as superintendent of schools for Humboldt County School District. I could

The primary budget is

not be prouder to call Winnemucca my home and to work with the caliber of employees that we have

the Operating Budget,

serving the students in our district. The focus of the district over the past several years has been on

which provides for day

enhancing our commitment to ensure that every student is prepared to graduate; college and/or career

to day operations and

ready. Our staff has responded phenomenally to this challenge as demonstrated by increased graduation

general maintenance of

rates; growing from 63.49% during my first year as superintendent, to over 76% for the graduated class of

our schools. The second

2016 with a goal of 90% in the future.

is the Capital Improvement Budget

To ensure our communities expected quality of education, fiscal resources are necessary to accomplish

which addresses major

the identified goals. In order to provide all interested parties a better understanding of how district

facility needs.

resources are utilized, this document, HCSD Budgeting – Community Report, has been designed to assist in explaining the complexities of our school system’s budget. Understanding our budget is important

-A fiscal year for HCSD runs from July

1st

because it reflects the priorities of our school system and the community as a whole.

to

June 30th. For example,

As a district, we have been fortunate to have maintained a solid fiscal position. This has not come without

the Fiscal Year (FY)

strategic emphasis or focus. Despite this work, challenges will continue to require us to focus on ensuring

2017 budget provides

the stability of our resources. As such, input and suggestions from both staff and community members is

resources for the school

essential to ensuring that funds are utilized in the most effective manner possible. One question that has

year beginning July 1,

been implemented to drive decisions is; “what is the return on our investment.” This concept, ROI, is

2016 and ending June

essential to ensuring that funds are utilized in a manner which support activities, programs and initiatives

30, 2017.

that have the greatest impact on our students. As we have articulated in the past, no longer can decisions be made based simply on the premise, “It’s what we have always done.”

- 2017 marks the first year that funding is

I hope that this document may be of benefit in encouraging meaningful conversation regarding the

based on Average Daily

utilization of funds in our district. I would encourage each community member to take an active part in

Enrollment (ADE) versus

discussions regarding the budgeting and instruction of our greatest commodity; the students of Humboldt

a fixed count day.

County.

- HCSD falls under the

As a district, we are committed to success for every child in Humboldt County School District. Thank you

Nevada Plan which

for your continued support as we work together in providing a bright future for our community’s children.

utilizes a share between state and local resources. As local resources increase, the state’s share decreases.

Dr. David Jensen Superintendent January 6, 2017

Driving Goals and Objectives

Pg. 02

Vision Statement:

Driving Goals and Objectives

“Every child will

Superintendent Goals:

graduate; beginning with Kindergarten,

The goals established by the Superintendent for the 2016-2017 school year revolve around three primary areas:

each will be prepared and confident to

1) Continue Efforts to Enhance Graduation Rates

succeed.”

2) Provide a Strategic Focus on Communication 3) Ensure Continued Fiscal Responsibility The purpose of these goals is to define the steps necessary to continue to move the district

Mission Statement:

forward on behalf of all students within Humboldt County. Each goal includes clear action

As a community, we

steps which assist in tracking and monitoring progress. A copy of the goals, with associated

will instill in every

action steps can be found under the Superintendent tab on the district website;

child a vision to

www.hcsdnv.com.

graduate, providing a

Board Goals:

comprehensive, safe, challenging and

Similar to the goals established by the superintendent, the Board of Trustees has also

effective learning

defined specific goals addressing four critical areas identified as being essential to the

environment that

Board:

prepares students to be career and college ready.

1) Ensure Financial Stability and Integrity of the District 2) Maintain a Focus on Graduation Rates 3) Engage Stakeholders More Effectively 4) Ensure Ongoing Professional Development as Trustees As with the Superintendents goals, each area of focus has specific actions steps associated with them. This allows the board to track their progress and is utilized as a component of the board self-evaluation which is conducted on an annual basis.

Pg. 03

Where Do HCSD’s Funds Come From?

Where Do HCSD’s Funds Come From? Funding Breakdown (FY 16), excluding Bond Funds: Local Funds – 63% $24,698,339 Property and sales taxes are the primary funding sources of Local Revenue

State Funds – 28% $10,858,710 Primarily funded through various state allocations for Class Size Reduction, Full Day Kindergarten & Special Education.

Federal Funds – 9% $3,697,460 Primarily funded through federal grants to support Title Programs

Total for FY 2016 $39,254,509

Majority of Revenue Comes from Local Sources

Where Do HCSD’s Funds Come From?

Pg. 04

Local Funds Comparision Budget Process

$35,000,000

90%

$30,000,000

Ongoing – Administration monitors system performance

$25,000,000

75%

70% 81%

80% 72%

63%

70% 59%

$20,000,000

53%

53%

60% 51%50% 40%

$15,000,000

30%

$10,000,000

February – Class size analysis process March –

20%

$5,000,000

10%

$-

0% FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 LOCAL

Superintendent

%

begins soliciting input on budget priorities

Funding is based on the Nevada Plan

April – Tentative

The Nevada Plan is the means used to finance education funding within the State of Nevada

Budget presented to

as defined in NRS 387.121. Under the Nevada Plan, school districts and charter schools are

the Board of Trustees

provided a guaranteed amount of funding. The source of those funds are derived from a

May – Final Budget

combination of both local and state resources. In general, the guaranteed funding level

presented to the Board of Trustees

contributes 75% to 80% of a district’s general fund resources. Funding is obtained through the Distributive School Account (DSA) and locally collected revenues from the current 2.60% Local School Support Tax (LSST) and one-third of the proceeds from the 75 cent ad valorem

June – Second

property tax rate as defined by NRS 387.195.

budget augment for concluding school year

The level of funding for each district, identified as a per-pupil dollar amount, is defined in law during each legislative session. The amount each district receives is determined through a complex formula that includes local demographic characteristics of the school district. In

December – First

addition, costs associated with transportation are included utilizing 85% of the actual

budget augment to

transportation costs adjusted for inflation as defined by the Consumer Price Index. A Wealth

match revenue and

Adjustment, based on a district’s ability to generate revenues in addition to the guaranteed

expenditure patterns

funding, is also included in the formula. For Humboldt County, this would include Net Proceeds of Minerals (NPM). Once local revenues are determined, any remaining obligation (state aid), is funded through the Distributive School Account (DSA). Revenue received by the district from the LSST and

Where Do HCSD’s Funds Come From?

Pg. 05

the one-third calculation of the 75 cent property tax rate is deducted from the districts support guarantee. NPM is included within the local property tax rate. If local revenues come in lower than projected, state aid is increased to cover the short fall. Conversely, if local revenues are higher than projected, state aid is reduced and often leads to a reversion of payments back to the Department of Education. Most districts also receive additional funding “outside” the Nevada Plan not included in the state guaranteed calculations. Other local revenues “outside” the Nevada Plan include: two-thirds of the proceeds of the 75 cent property tax rate; basic government services tax distributed to the district; franchise tax; interest income; tuition agreements; unrestricted federal revenue, and other local revenues. Source: The Nevada Plan for School Finance: An Overview. Fiscal Analysis Division Legislative Counsel Bureau. 2013 Legislative Session

As noted, FY 16 marks the first year in which funding is based on an “Average Daily Enrollment” (ADE) versus the historic count day. Under the count day analysis, generally the third Thursday in September was identified as the date in which district enrollment was determined. The total number of students enrolled on that date became the basis for the funding for the year. Under the ADE analysis, enrollment is calculated on a quarterly basis. As a result, the district must anticipate a “moving target” as future enrollment becomes an unknown. In addition, historically, rural districts, such as Humboldt County School District, tend to lose enrollment throughout the school year. As a result, available Basic Support is subject to reduction during the fiscal year, although costs (such as staffing) remain fixed for the year.

Where Do HCSD’s Funds Come From?

Pg. 06

THE NEVADA PLAN FY 16 - Simplified Definitions Weighted Enrollment – All

The following illustrates the guaranteed funding process (General Fund only, excludes Special Education, Federal Grants, Debt Service, Capital Projects and Other Governmental Funds) based on the revenue of our district and, in addition, shows other revenue outside of the guarantee, making up the majority of the resources included in an operating budget.

students with Kindergarten and Early Childhood factored at 0.6. Basic Support –

BASIC SUPPORT GUARANTEE

DISTRICT

1. Number of Pupils (Avg Quarterly Weighted Enrollment)

3,280.22

2. Basic Support Per Pupil

$ x 6,476

Legislatively identified funding level for each student. Guaranteed Basic Support – Minimum funds

3. Guaranteed Basic Support 4. Special Education Allocation (33 teacher units @ $45,455 per unit)

$21,242,705.00

+ $1,500,015.00

5. Total Guaranteed Support

= $22,742,720.00

6. Local Resources Minus Charter School 2.60-cent Local School Support (sales) Tax 25-cent Ad Valorem (property/mining) Tax

- ($ 159,283.00) -($10,386,659.00) -($ 3,655,922.00)

guaranteed for the education of pupils based on the Weighted Enrollment multiplied by the Basic Support level.

7. State Responsibility

= $ 8,545,389.00

8. Special Education Transfer

-($ 1,500,015.00)

LSST – percentage of taxable sales utilized to fund education in the state

9. Total Revenue from Distributive School Account

= $7,040,841.00

of Nevada. Currently factored at 2.6 cents.

RESOURCES IN ADDITION TO BASIC SUPPORT:

Ad Valorem – portion of

10. 2.60-cent Local School Support (sales) Tax

$10,386,659.00

11. Net Proceeds of Mines (Advance Payment)

$2,328,517.00

12. 50-cent Ad Valorem (property) Tax

$7,920,589.00

assessed valuation.

13. Motor Vehicle Privilege Tax

$1,331,484.00

Net Proceeds of Mines –

14. Federal Revenues (Unrestricted) (Impact Aid, E-Rate)

$966,038.00

revenue.

15. Miscellaneous Revenues, Tuition, Pay to Play

$255,217.00

Advanced Net Proceeds

16. Opening Fund Balance (NPM, ANPM. Inventories, Unres)

property tax used to support education in the state of Nevada. Factored at 75 cents per $100

taxes paid based on mining

of Mines – NPM taxes paid based on projected revenues. Opening Fund Balance – Funds available for use in the current fiscal year. Ending Fund Balance – Funds reserved for the following fiscal year.

$6,088,393.00

17. Total Resources in Addition to Basic Support

$ 29,276,897.00

18. Total Resources Available (Add lines 9 and 17)

$ 36,317.738.00

Pg. 07

Where Do HCSD’s Funds Come From?

Enrollment The District reached an enrollment high of 4,257 students during the 1998-1999 school year. The lowest student enrollment of 3,336 in 2008-2009 represents a loss of 22% from the high noted in 1998-1999. 2014-2015 reflected the first decline in

DSA calculations have historically been based on enrollment figures calculated on the third Thursday in September, identified as Count Day. Effective with the 2015-2016 school year, enrollment will be based

enrollment since

on Average Daily Enrollment (ADE) on a quarterly basis. This number becomes the foundation for our

2010-2011 with

state support. The district is funded fully for first grade and above, while students in kindergarten and

almost flat enrollment

early childhood special education are funded at 0.6 per student.

for 2015-2016. Funding By way of approximation, for each 1 million in increased/decreased Ad Valorem, the DSA is decreased/increased by $1. As a result, we are impacted by local fluctuations.

Where Do HCSD’s Funds Come From?

Pg. 08

DSA Funding $7,000.00

6719 6476

$6,000.00

5738

5242

5540 5718

6091

6402 6529 6437

6000

5642 5525

$5,000.00 $4,000.00 $3,000.00 $2,000.00 $1,000.00 $0.00

Funding levels have been increasing since 2014 as a result of a decrease in gold prices reducing the available local support. In addition, the Nevada Plan was revised providing benefit to HCSD in 2015. However, under the Nevada Plan, “local wealth” is taken into consideration when determining the Basic Support level, and figures are generally two years behind. As a result, local triggers that reduce local wealth are not calculated for the current year placing districts at a disadvantage. As an example, original projects showed Humboldt receiving $6,846 for FY 17, however, calculations that included local wealth reduced this figure to the current $6,719. Because of the unpredictability of the DSA funding, districts must utilize extreme caution. In addition, increased funding levels often do not keep pace with costs for benefits. As an example, the PERS (Nevada’s retirement system) was 19.75% in 2009, while current PERS contribution rates are currently at 28%. This increase equates to an increase of $1,864,442 in expense, while basic support is inadequate to cover this expense alone. (see graph “All Salaries and Benefits – By Year” on page 10) As a district, and in conjunction with our associations, we have been frugal in our expense patterns providing a level of stability many districts did not enjoy over the past several years. The following pages provide information regarding funding comparisons. As you review this information, I would invite you to contact Dr. Jensen should you have any questions, comments or suggestions.

Funding Comparisons

Pg. 09

Funding Comparisons DSA versus Actual Cost - Per Pupil $14,000 $12,000

$12,262

$11,851 $10,767

$10,947

$10,636

FY2015

FY2014

FY2013

$10,604

$10,871

FY2011

FY2010

$10,005

$10,306

FY2009

FY2008

$10,000 $8,000 $6,000 $4,000 $2,000 $FY2016

FY2012

Actual Cost Per Pupil

DSA Basic Support Per Pupil

Local Revenue vs State Revenue - as a % 120% 100%

100% 80%

75%

88%

83%

82% 69%

61%

60% 40%

25% 17%

20%

12%

18%

31%

60%

56%

39%

40%

44%

FY10 Actuals

FY09 Actuals

FY08 Actuals

55%

45%

0%

0% FY16 Actuals

FY15 Actuals

FY14 Actuals

FY13 Actuals

FY12 Actuals

% Local Revenue

FY11 Actuals

% DSA Revenue

FY07 Actuals

Pg. 10

Salaries and Benefits vs Total Expenditures

Salaries and Benefits vs Total Expenditures FY2016 $2,876,873 $3,514,167

SALARIES

$9,238,143

$21,602,755

BENEFITS

PURCHASED SERVICES

SUPPLIES

All Salaries and Benefits - By Year $25,000,000 $21,602,755

$20,000,000

$20,552,389 $20,348,282 $19,703,799 $20,772,611 $20,490,298 $19,820,084 $19,727,439 $19,337,343

$15,000,000 $10,000,000

$9,238,143

$8,633,055 $8,526,560 $7,761,160 $7,528,891 $7,456,433

$6,985,745 $7,373,701 $6,954,598

$5,000,000 $FY2016

FY2015

FY2014

FY2013 SALARIES

FY2012 BENEFITS

FY2011

FY2010

FY2009

FY2008

Contact Information

Pg. 11

Contact Information Dr. David Jensen Superintendent Tel 775-623-8196 Fax 775-623-8102 [email protected]

Glenda Deputy Vice President Tel 775-421-8282 [email protected]

District Contact Information Humboldt County School District 310 East Fourth Street Winnemucca, NV 89445 Tel 775-623-8100 Fax 775-623-8102

http://www.hcsdnv.com

Bruce Braginton Board President Tel 775-397-8960 [email protected]