SB 307 Building Reserve Fund
In SB 307, laws regarding the building reserve fund have been updated to include new provisions for levies and state funding. The changes affect construction projects, transition costs, improvements to school safety, and more. March 1 marks key dates for estimating state school major maintenance aid, while March 31 involves resolutions for nonvoted levies in school districts. Details about fund handling and calculations are provided in the content.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
How 307 affects the 406 (307 = SB 307 & 406 = state area code) Jokes are only funny when you don t have to explain them.
SB 307 Law prior to SB 307 allowed for the following in the building reserve fund: 1. An election that authorizes a voted levy for construction, equipping, enlarging or purchasing of land not to exceed 20 years (20-9-502, MCA). 2. An election that authorizes a voted levy for transition costs not to exceed 6 years (20-9-502, MCA). Once a levy is setup the district enters the amount to be levied in the budget year. You may recall entering data into MAEFAIRS in screens like these 3. Transfers of funds to fund 61 for the purposes of improvements to school safety and security
SB 307 Law post SB 307 now allows for the following in this fund: All items listed in the prior slide all handled in the same manner as in previous years (with the exception of school safety transfers now are permanent and includes language requiring that transfers be returned to the originating fund within 2 full fiscal years if not expended or encumbered) (Section 3 of SB 307 or 20-9-236). NEW 4. Permissive building reserve levy and, in the future, state funding to the building reserve fund. How will this all work?
March 1 Using the taxable valuation most recently certified by the department of revenue under 15-10-202, the superintendent shall provide school districts with a preliminary estimated amount of state school major maintenance aid per dollar of local effort for the ensuing school year no later than March 1 and a final amount for the current school year no later than July 31. (section 8(4)). In March 2018 the Preliminary Budget Data Sheets for FY2019 will be adjusted to show the preliminary estimated amount of state school major maintenance aid per dollar of local effort for the ensuing school. To do this a district s school major maintenance amount (SMMA) will be calculated (Section 6(3)(a)). SMMA = $15,000 + ($100 X PY Budget Limit ANB) Example: SMMA for budget year 20189 $15,000 + ($100 X 35) = $18,500 Where 35 equals the budget limit ANB from FY 20178. Then OPI will calculate the amount of state major maintenance aid per dollar of local effort. (Section 8(3)(a)) through (Section 8(4)). See excel calculator titled MMA_Calculation.
March 31 March 1 Resolution of intent to increase nonvoted levy notice The trustees of a school district shall adopt a resolution no later than June 1 in fiscal year 2017 only and no later than March 31 in fiscal years 2018 and subsequent fiscal years and provide notice pursuant to subsection (2) whenever the trustees intend to impose an increase in a nonvoted levy in the ensuing school fiscal year for the purposes of funding any of the funds listed below: (section 1(a)(b)) tuition, adult education, building reserve, transportation, bus depreciation. Help to calculate the requirements of this section can be found on the Mill Calculator tab of the GF Budgeting Spreadsheet.
March 31 MAEFAIRS Budget Time (July-August) March 1 MAEFAIRS budget screens are being adjusted to handle the new permissive levy portion. The Voted Levy, Safety Transfers & Transition levy portions in the budget should work the same way as in the past. Voted Levy Voted Tax Levy
March 31 MAEFAIRS Budget Time (July-August) March 1 A new button will be created to handle the new permissive levy portion. New Button Permissive Levy Revenues Voted Levy Add A New Permissive Budget Record 0118 (Building Reserve MMA) Permissive Levy 1125 (Building Reserve MMA) Coal Gross Proceeds 1131 (Building Reserve MMA) Tax Title and Property Sales 1511 (Building Reserve MMA) Interest Earnings 1901 (Building Reserve MMA) Other Revenue from Local Sources 3303- (Building Reserve MMA) State Payment in Lieu of Taxes FWP 3441 - (Building Reserve MMA) Combined Block Grant 3461 (Building Reserve MMA) Montana Oil and Gas Tax 9101 (Building Reserve MMA) Other Revenue 9711 (Building Reserve MMA) Residual Equity Transfers In School Major Maintenance Amount (SMMA) $57,000 Note: These are unique revenue codes and will be available for only fund 61 in the PRC designated for Permissive Sub-Fund. These are budgeted NLR s and Budgeted Transfers. The OPI will check to assure these estimated revenues are deposited to this sub-fund on the ensuing year s TFS. If the revenues are not deposited the State support will be recalculated and a reversion will be applied. Permissive Tax Levy The levy amount cannot exceed 10 mills and the overall amount cannot exceed the SMMA Box size.
March 31 MAEFAIRS Budget Time (July-August) March 1 The summary tab is getting a new look to display the permissive portion of the fund. 20,400 (Voted Levy) Voted Levy Amount 15,000.00 Permissive Levy Amount Revenue and Transfers For Permissive Levy 400.00 State Major Maintenance Aid 5,000.00 0.00 Total Voted Levy Mill Levies 7.35 Permissive Mill Levies 2.65 Total
March 31 MAEFAIRS Budget Time (July-August) May Payment FY 19 March 1 NOT IN FY 2018 Beginning FY 2019 - Subject to proration under subsection (5) of this section, aid must be annually distributed no later than the last working day of May to a school district imposing a levy pursuant to 20-9-502(3) in the current school fiscal year (Section 8(3)(a)). What does this mean for me? Lets say your district has the following: A permissive levy amount of and the state school major maintenance aide (MMA) per dollar of local effort is $1.37 Your state MMA should be (IF FULLY FUNDED) $7,000.00 $9,590.00 In reality there may not be enough state funding to fully support the calculated MMA and only 60% is available: A permissive levy amount of and the state school major maintenance aide (MMA) per dollar of local effort is $1.37 0.82 Your state MMA should be (Prorated at 60%) $7,000.00 $9,590.00 $5,754.00
March 31 MAEFAIRS Budget Time (July-August) October 31 FY 19 May Payment FY 19 July 1 FY 19 March 1 What can the School Major Maintenance Amount be expended on? Section 8 (2)(a) first, making any repairs categorized as "safety", "damage/wear out", or "codes and standards" in the facilities condition inventory for buildings of the school district as referenced in the K-12 public schools facility condition and needs assessment final report prepared by the Montana department of administration pursuant to section 1, Chapter 1, Special Laws of December 2005; http://opi.mt.gov/Finance-Grants/Index.html Landing Page http://www.mtk12facilitysurveys2008.com/ Detailed survey by district (b) after addressing the repairs in subsection (2)(a), any of the following: (i) updating the facility condition inventory as recommended in the final report referenced in subsection(2)(a) with the scope and methods of the review to be determined by the trustees, employing experts as the trustees determine necessary. The first update must be completed by July 1, 2019, and each district shall certify the completion to the Office of Public Instruction no later than October 31, 2019. And then additional certifications no less than once every 5 years thereafter.
March 31 MAEFAIRS Budget Time (July-August) October 31 FY 19 May Payment FY 19 July 1 FY 19 March 1 What can the School Major Maintenance Amount be expended on? Section 8 (continued) (ii) undertaking projects designed to produce operational efficiencies such as utility savings, reduced future maintenance costs, improved utilization of staff, and enhanced learning environments for students, including but not limited to projects addressing: (A) roofing systems; (B) heating, air conditioning, and ventilation systems; (C) energy-efficient window and door systems and insulation; (D) plumbing systems; (E) electrical systems and lighting systems; (F) information technology infrastructure, including internet connectivity both within and to the school facility; and (G) other critical repairs to an existing school facility or facilities.
MAEFAIRS Budget Time (July-August 2018) TFS Reporting to Begin July 2017 (for TFS reporting of FY 2018) SB 307 requires that revenues and expenditures be tracked as sub-funds . The sub-funds are as follows: Building Reserve Voted Levy Sub-Fund Building Reserve Permissive Levy Sub-Fund Building Reserve Transition Cost Sub-Fund Building Reserve School Safety and Security Sub-Fund (example PRC 994) (example PRC 991) (example PRC 992) (example PRC 993) The OPI intends to create project reporter codes (PRC s) to identify each sub-fund. It will be required that revenues and expenditures are entered to the MAEFAIRS system using the PRC s designated to each sub-fund to track expenditures and revenues in those sub- funds.
