Groveport-Madison Local School District – Franklin County SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE FISCAL YEARS ENDED JUNE 30, 2017, 2018 and 2019 ACTUAL FORECASTED FISCAL YEARS ENDING
JUNE 30, 2020 THROUGH 2024

Forecast Provided By Groveport-Madison School District
Treasurer's Office
Joyce Disharoon, Interim-Treasurer

November 12, 2019

GROVEPORT MADISON LOCAL SCHOOL DISTRICT Franklin County
Schedule of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Years Ended June 30, 2017, 2018, 2019 Forecasted Fiscal Year Ending June 30, 2020 through 2024

	Actual
		Forecasted
	
	Fiscal Year	Fiscal Year	Fiscal Year
2017	2018	2019
	Average
Change
	Fiscal Year	Fiscal Year	Fiscal Year	Fiscal Year	Fiscal Year
2020	2021	2022	2023	2024

Revenues
1.010 General Property Tax (Real Estate) 1.020 Tangible Personal Property
1.030 Income Tax
1.035 Unrestricted State Grants-in-Aid 1.040 Restricted State Grants-in-Aid
1.045 Restricted Fed. SFSF Fd. 532 FY10&11/Ed Jobs F 1.050 Property Tax Allocation
1.060 All Other Revenues 1.070 Total Revenues

Other Financing Sources 2.010 Proceeds from Sale of Notes
2.020 State Emergency Loans and Advancements (Appro 2.040 Operating Transfers-In
2.050 Advances-In
2.060 All Other Financing Sources 2.070 Total Other Financing Sources
2.080 Total Revenues and Other Financing Sources

Expenditures 3.010 Personnel Services
3.020 Employees' Retirement/Insurance Benefits 3.030 Purchased Services
3.040 Supplies and Materials 3.050 Capital Outlay
3.060 Intergovernmental Debt Service:
4.010      Principal-All (Historical Only) 4.020      Principal-Notes
4.030      Principal-State Loans
4.040      Principal-State Advancements 4.050      Principal-HB 264 Loans
4.055      Principal-Other
4.060      Interest and Fiscal Charges 4.300 Other Objects
4.500 Total Expenditures

Other Financing Uses 5.010 Operating Transfers-Out 5.020 Advances-Out
5.030 All Other Financing Uses 5.040 Total Other Financing Uses
5.050 Total Expenditures and Other Financing Uses 6.010 Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses

7.010 Cash Balance July 1 - Excluding Proposed Renewal/Replacement and New Levies

7.020 Cash Balance June 30

8.010 Estimated Encumbrances June 30

Reservation of Fund Balance
9.010	Textbooks and Instructional Materials 9.020	Capital Improvements
9.030	Budget Reserve 9.040	DPIA
9.045	Fiscal Stabilization 9.050	Debt Service
9.060	Property Tax Advances 9.070	Bus Purchases
9.080      Subtotal
Fund Balance June 30 for Certification of 10.010 Appropriations

Revenue from Replacement/Renewal Levies 11.010     Income Tax - Renewal
11.020     Property Tax - Renewal or Replacement

11.300 Cumulative Balance of Replacement/Renewal Levie
	
33,795,007	34,158,402	35,424,433 0                          0                          0 -                           -                           -
37,712,926            39,185,321            40,433,873 2,265,448              2,359,606              2,263,183
d		-	-	-2,841,785              2,767,245              2,690,318
7,271,459	5,005,876	4,290,414
	
2.4% 0.0% 0.0% 3.5% 0.0% 0.0% -2.7%
-22.7%
	
$35,496,955	$36,274,349	$36,986,519	$37,641,611	$38,316,985 $0                        $0                        $0                        $0                        $0 $0                        $0                        $0                        $0                        $0
$40,608,214           $40,789,406           $40,768,788           $40,747,963           $40,726,932 $2,397,293            $2,397,293            $2,421,266            $2,445,479            $2,469,933 $0                        $0                        $0                        $0                        $0 2,660,416              2,706,544              2,675,752              2,677,669              2,690,701
3,990,983	3,833,671	3,849,808	3,866,129	3,882,641
	
	83,886,625	83,476,450	85,102,221
	0.7%
	85,153,861	86,001,263	86,702,133	87,378,851	88,087,192

350,014                        60                           --                           -                           -
1,492,023                           -                           --                           -                           -
8,447	9,773	25,775
	
-100.0% 0.0% 0.0% 0.0%
89.7%
	
$0	$0	$0	$0	$0 -                           -                           -                           -                           --                           -                           -                           -                           --                           -                           -                           -                           -
$10,000	$10,000	$10,000	$10,000	$10,000
	
	1,850,484	9,833	25,775
	31.3%
	10,000	10,000	10,000	10,000	10,000
	
	85,737,109	83,486,283	85,127,996
	-0.3%
	85,163,861	86,011,263	86,712,133	87,388,851	88,097,192

$31,672,935           $33,669,012           $35,061,322 14,049,911            15,870,153            16,539,954 26,659,143            24,252,433            24,822,589 1,835,078              2,546,622              2,962,978 1,822,345                 810,428                 486,511
-	-	-

-	-	--	-	--	-	--	-	--	-	--	-	--	-	-
1,117,533	1,102,995	935,832
	
5.2% 8.6% -3.3% 27.6%
-47.7% 0.0%

0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
-8.2%
	
$35,923,260           $37,072,444           $38,682,206           $40,089,353           $41,558,040 $17,439,877           $18,332,114           $19,520,834           $20,817,384           $22,210,797 $25,171,600           $25,529,957           $25,776,900           $26,151,214           $26,535,685 2,896,867              2,983,773              3,073,286              3,165,485              3,260,449 1,190,587              1,495,125              1,210,739              1,213,150              1,213,150
-	-	-	-	-

-	-	-	-	--	-	-	-	--	-	-	-	-
$0	$0	$0	$0	$0 $0	$0	$0	$0	$0 $0	$0	$0	$0	$0 $0	$0	$0	$0	$0
$1,106,000	$1,128,761	$1,152,101	$726,035	$746,081
	
	$77,156,945	78,251,643	80,809,186
	2.3%
	83,728,191	86,542,174	89,416,066	92,162,621	95,524,202

2,291,973              1,814,325              1,803,537 -                           -                           -
-	-	-
	
-10.7% 0.0%
0.0%
	
$1,399,358            $1,114,017               $926,265               $927,075               $926,584 -                           -                           -                           -                           -
-	-	-	-	-
	
	2,291,973	1,814,325	1,803,537
	-10.7%
	1,399,358	1,114,017	926,265	927,075	926,584
	
	79,448,918	80,065,968	82,612,723
	2.0%
	85,127,549	87,656,191	90,342,331	93,089,696	96,450,786

6,288,191	3,420,315	2,515,273
	
-36.0%
	
36,312	(1,644,929)	(3,630,198)	(5,700,845)	(8,353,594)

7,051,465	13,339,656	16,759,971
	
57.4%
	
19,275,244	19,311,556	17,666,628	14,036,430	8,335,585

	13,339,656	16,759,971	19,275,244
	20.3%
	19,311,556	17,666,628	14,036,430	8,335,585	(18,009)

	995,888	1,135,794	1,484,054
	22.4%
	394,000	394,000	394,000	394,000	394,000

-	-	--	-	--	-	--	-	--	-	--	-	--	-	--	-	-
-	-	-
	
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0%
	
-	-	-	-	--	-	-	-	--	-	-	-	--	-	-	-	-
3,130,607	3,169,527	-	-	--                           -	-	-	--                           -	-	-	--                           -	-	-	-
3,130,607	3,169,527	-	-	-

12,343,768	15,624,177	17,791,190
	
20.2%
	
15,786,949	14,103,101	13,642,430	7,941,585	(412,009)

-                           --                           -
	
0.0% 0.0%
	
-                           -                           -                           -                           --                           -                           -                           -                           -
	
	-	-
	0.0%
	-	-	-	-	-

11/6/2019 Groveport Madison - 046979	1

GROVEPORT MADISON LOCAL SCHOOL DISTRICT Franklin County
Schedule of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Years Ended June 30, 2017, 2018, 2019 Forecasted Fiscal Year Ending June 30, 2020 through 2024

	Actual
		Forecasted
	
	Fiscal Year	Fiscal Year	Fiscal Year
2017	2018	2019
	Average
Change
	Fiscal Year	Fiscal Year	Fiscal Year	Fiscal Year	Fiscal Year
2020	2021	2022	2023	2024
	
12.010 Fund Balance June 30 for Certification of Contracts, Salary Schedules and Other Obligations

Revenue from New Levies 13.010     Income Tax - New 13.020     Property Tax - New

13.030 Cumulative Balance of New Levies

14.010 Revenue from Future State Advancements

15.010 Unreserved Fund Balance June 30
	
12,343,768
	
15,624,177	17,791,190
	
20.2%
	
15,786,949	14,103,101	13,642,430	7,941,585	(412,009)

0.0% 0.0%
	
$0                        $0                        $0                        $0                        $0 -                           -                           -                           -                           -
	
	-	-	-
	0.0%
	-	-	-	-	-

-
	
0.0%
	
-	-	-	-	-
	
	12,343,768	15,624,177	17,791,190
	20.2%
	15,786,949	14,103,101	13,642,430	7,941,585	(412,009)

11/6/2019 Groveport Madison - 046979	2

Groveport-Madison School District – Franklin County Notes to the Five Year Forecast General Fund Only

November 12, 2019

Introduction to the Five Year Forecast
For fiscal year 2020 (July 1, 2019 – June 30, 2020) school districts in Ohio are required to file a five (5) year financial forecast by November 30, 2019, and May 31, 2020. HB87, effective November 1, 2018, changed the October filing deadline to November 30 beginning with this forecast. The May 31 filing date remains unchanged. The five-year forecast includes three years of actual and five years of projected general fund revenues and expenditures. HB166, the new state biennium budget provided new restricted state funding to school districts in Fiscal Years 20 and 21 specifically for Student Wellness and Success. These revenues are restricted and are required to be accounted for in a Special Revenue Fund (Fund 467) and are NOT included in this forecast.

Fiscal year 2020 (July 1, 2019-June 30, 2020) is the first year of the five-year forecast and is considered the baseline year. Our forecast is being updated to reflect the most current economic data available to us for the November 2019 filing..

Economic Outlook
It is prudent in long range forecasting to consider the economic climate that long range projection of revenues and expenses are made. The state of Ohio provides roughly 50% of all school district funding so the state’s financial health is a stabilizing factor for school district funding. The state of Ohio ended FY19 with a surplus of revenue over expenses and is maintaining a statutory maximum balance of $2.8 billion in the Budget Stabilization Fund that would enable it to weather an economic slowdown during the forecast period. Unemployment rates statewide fell from 4.5% in June 2018 to 4.0% in June 2019 and overall economic growth is predicted to grow at a relatively steady rate of 2% annually through 2021 according to the Ohio Office of Budget and Management. This positively impact state revenues and local revenues for districts with school district income taxes and will reduce delinquent local property tax payments if employment remains strong. These indicators suggest the state of Ohio’s overall economy is healthy and should be able to maintain stable funding through the foundation program through the forecast period.

Statewide assessed property values and local tax collections have recovered from the sharp drops that occurred in 2008 through 2011. In 2008 statewide property values reached $256.23 billion of assessed value and in 2017 they rose above this to $263.73 billion for the first time. Assessed values grew 4.3% overall from 2017 to $275.01 billion in 2018. Property values and new construction are expected to continue growing throughout the forecast period with some districts with high agricultural values experiencing slightly lower growth due to changes in current agricultural use valuation that will occur during reappraisal and update years. Property values and tax collections show trends supporting stability and growth for the forecast period.

Forecast Risks and Uncertainty:
A five year financial forecast has risks and uncertainty not only due to economic uncertainties noted above but also due to state legislative changes that will occur in the spring of 2021 and 2023 due to deliberation of the next two (2) state biennium budgets for FY22-23 and FY24-25, both of which affect this five year forecast. We have estimated revenues and expenses based on the best data available to us and the laws in effect at this time. The items below give a short description of the current issues and how they may affect our forecast long term:

I.	The State Budget represents 53.6% of district revenues, which means it is a significant area of risk to revenue. The future risk comes in FY22 and beyond if the state economy worsens or if the funding

3

formula in future state budgets reduce funding to our district. There are two future State Biennium Budgets covering the period from FY22-23 and FY24-25 in this forecast. Future uncertainty in both the state foundation funding formula and the state’s economy makes this area an elevated risk to district funding long range through FY24. We have projected our state funding to be in line with our current estimates through FY24 which we feel are conservative and should be close to whatever the state approves for the FY22-23 biennium budget. We will adjust the forecast in future years as we have data to help guide this decision.

II.	HB166 continues the many provisions contained in prior state biennium budgets that will continue to draw funds away from our district through continuing school choice programs such as College Credit Plus, Community Schools and increases in per pupil scholarship amounts deducted from our state aid in the 2019-21 school years, even though funding for our students was not increased to our district for this biennium budget. College Credit Plus costs continue to increase as this program becomes more understood. These are examples of new choice programs that increase with each biennium budget cost the district money. Expansion or creation of programs such as these exposes the district to new expenditures that are not currently in the forecast. We are monitoring any new threats to our state aid and increased costs very closely.

III.	Property tax collections are the second largest single revenue source for the school system. The housing market in our district is stable and growing. We project continued growth in appraised values every three (3) years and new construction growth with continued modest increases in local taxes. Total local revenues which are predominately local taxes equate to 44.4% of the district’s resources. We believe there is a low risk that local collections would fall below projections in the forecast.

IV.	The district’s 6.68 mill Current Expense levy will expire on December 31, 2024. The renewal of this levy is necessary to keep the district financially healthy long term.

V.	Labor relations in the district have been very amicable with all parties working for the best interest of students and realizing the resource challenges the district faces. We believe as the district moves forward a strong working relationship will continue.

4

General Fund Revenue, Expenditure and Ending Cash Balance

	

	
	Tax levyto be renewed

	

Act. 2017	Act. 2018	Act. 2019	Est. 2020	Est. 2021	Est. 2022	Est. 2023	Est. 2024

General Fund Revenue, Expenditures & Cash Balance

Millions
$120

$100

$80

$60

$40

$20

$-

$(20)

Revenue	Expenditures	Ending Bal.

The graph captures in one snapshot the operating scenario facing the District over the next few years.

The major lines of reference for the forecast are noted below in the headings to make it easier to relate the assumptions made for the forecast item and refer back to the forecast. It should be of assistance to the reader to review the assumptions noted below in understanding the overall financial forecast for our district. If you would like further information please feel free to contact Joyce Disharoon, Interim-Treasurer/CFO of Groveport-Madison School District at 614-492-2520.

5

Revenue Assumptions
Operating Revenue Sources General Fund FY20

General Fund Revenues Estimated 2020	$ 85,153,861

Other State
	
Local Sources     46.4%
	
3%

Real Estate Taxes State Foundation	42%
50%

Tang. Tax State Sources 53.6%	0%
Other Local 5%

Real Estate Value Assumptions – Line #1.010
Property Values are established each year by the County Auditor based on new construction, demolitions, Board of Revision (BOR)/Board of Tax Appeals (BTA) activity and complete reappraisal or updated values.

The Franklin County Auditor provided the district the values of all abatements that will be added to the Comm/Ind valuation beginning in 2015 collected in 2016. The first year that the values are added from being abated the values are treated as new construction which will give the district an increase in tax revenue. We have included these values in the forecast during the correct collection year.

A complete reappraisal occurred in 2017 for collection in FY18 and we received an increase of 13.94% in residential/agricultural values and an increase of 4.38% commercial/industrial property. Real estate tax revenue makes up 41% of the district’s General Fund revenue. A reappraisal update will be completed in tax year 2020 for collection 2021, based on information from the county auditor we are using a 15% increase in values.

CAUV values represent 1.8% of Class I residential agricultural values. HB49 authorized a reduction in CAUV computations that will result in these values falling on average by 30%. These reductions will occur as districts experience their next reappraisal or update cycle. We experienced this in the Tax Year 2017 reappraisal. A reduction of value has been weighted in to our average Class I value change in 2017. This will cause a shift in taxes from agricultural taxpayers to residential taxpayers but should not result in lower taxes to our district.

Public Utility Personal Property (PUPP) values have seen a growth over the past five years and we expect a slight increase each year of the forecast. The district experienced a large increase in PUPP values in 2018 for collection in 2019 but does not expect that type of increase for future years of the forecast.

6

ESTIMATED ASSESSED VALUE (AV) BY COLLECTION YEARS

Classification Res./Ag.
Comm./Ind.

Actual TAX YEAR 2019 COLLECT2020
$521,665,620 $355,661,325

Estimated TAX YEAR 2020 COLLECT2021
$600,365,463 $379,426,028

Estimated TAX YEAR 2021 COLLECT2022
$600,815,463 $394,159,838

Estimated TAX YEAR 2022 COLLECT2023
$601,265,463 $408,893,648

Estimated TAX YEAR 2023 COLLECT2024
$631,778,736 $427,716,395

Public Utility(PUPP)
Tangible Personal Property(TPP) Total Assessed Value

$67,265,250 $0 $944,592,195

$67,765,250 $0 $1,047,556,741

$68,265,250 $0 $1,063,240,551

$68,765,250 $0 $1,078,924,361

$69,265,250 $0 $1,128,760,381

ESTIMATED REAL ESTATE TAX (Line #1.010)
Property tax levies are estimated to be collected at 97% of the annual amount. Technically 100% of taxes will be settled on property due to Ohio’s property tax laws however, the timing of the tax payments is always in flux but they appear to have normalized. Property taxes are estimated to be collected at 54.93% of the Res/Ag and Comm/Ind in the February tax settlements and 45.07% collected in the August tax settlements. The December 2017 Federal Tax law changes to the deductibility of State and Local Tax (SALT) caused the first half 2018 tax collections to be and estimated $200,000 higher and will result in the second half 2018 (affects FY19) being lower by this amount. This will result in FY18 tax collections being higher and FY19 will be lower. This was an event that caused onetime cash flow acceleration only and is not additional new taxes. Tax collections will return to normal collections for FY20.

The district is forecasting tax settlement payments from Board of Revision complaints in in FY20 through FY23 of $325,000. These are settlement payments from previous years taxes that were not paid as the amount of valuations were being challenged.

Public Utility Personal Property tax settlements (PUPP taxes) are estimated to be received 50% in the February and 50% in the August settlement from Franklin County Auditor. The district posts PUPP and Real Estate Taxes in Line 1.010.

Category
Est. General Property Taxes Line #1.010

FY20 $35,496,955

FY21 $36,274,349

FY22 $36,986,519

FY23 $37,641,611

FY24 $38,316,985

Estimated Tangible Personal Tax – Line #1.020
The phase out of TPP taxes as noted earlier began in FY06. HB66 was adopted in June 2005 and the provisions of the legislation have estimated the tangible personal property tax would be eliminated after FY11. Any TPP revenues received in FY13 and beyond are delinquent TPP taxes.

Renewal and Replacement Levies – Line #11.020
The May 2014 levy was renewed in 2019 for five years and will expire on December 31, 2024. The district will need to renew the levy in 2024 for collection in 2025 to preserve the same level of funding for the district.

New Tax Levies – Line #13.030
No new levies are modeled in this forecast.

State Foundation Revenue - Lines #1.035, 1.040 & 1.045 A) Unrestricted State Foundation & Casino – Line #1.035
The amounts estimated for state funding are based on HB166 funding simulations which basically guarantee all school districts the same amount of state aid they received in FY19. Essentially funding for all 610 traditional school districts and 49 Joint Vocational and Career Centers is frozen for FY20 & 21 at the FY19 funding level for state basic aid. The State Foundation Funding Formula used since FY14 has now been abandoned after six

7

(6) years. HB305 is currently being considered by the legislature and may produce a successor funding formula for the FY22-23 biennium budget but there is nothing to base future projections on. For this reason we have projected state aid flat through FY24 as we have nothing authoritative to rely on at this time.

HB166 did include an Enrollment Growth Supplement for FY20 and FY21 for districts that were growing based on previous years data. The district will receive this additional funding in FY20 of $222,432 and in FY21 of $359,108. There are not any future increases for this in the remainder of the forecast.

Supplemental Funding for Student Wellness and Success (Restricted Fund 467)
Nearly all of the new funding for K-12 public education in the FY20-21 Executive Budget is provided through a formula allocating $250 million in FY20 and $358 million in FY21 based upon each district’s percentage of students in households at or below 185% of the Federal Poverty Level (FPL) and the total number of students enrolled in each district. In FY20 proposed funding ranges from $20 per student to $250 per student and in FY21 funding ranges from $25 per student to $300 per student. All schools and students are to receive a minimum additional funding of $25,000 in FY20 and $30,000 in FY21. Our district is estimated to receive $1,444,363 in FY20 and $2,088,378 in FY21. Money will be received twice each year in October and February. These dollars are to be deposited in a Special Revenue Fund 467 and are restricted to expenses that follow a plan developed in coordination with one of the approved community partner organizations approved in HB166 that include the following:
A. Student Wellness and Success Initiatives (ORC 3317.26(B)) Mental health services
Services for homeless youth
Services for child welfare involved youth Community liaisons
Physical health care services Mentoring programs
Family engagement and support services City Connects programming
Professional development regarding the provision of trauma-informed care Professional development regarding cultural competence
Student services provided prior to or after the regularly scheduled school day or any time school is not in session
B. Community Partners (ORC 3317.26(C))
A board of alcohol, drug and mental health services An educational service center
A county board of developmental disabilities
A community-based mental health treatment provider A board of health of a city or general health district A county department of job and family services
A nonprofit organization with experience serving children A public hospital agency

At this time our district is spending money in our General Fund that is servicing student needs as identified in 3317.26 (B) and our approved plan calls for these expenses to be recoded to Fund 467 for FY20 and FY21.We believe that the funding in Fund 467 will continue and will not be returning the expenditures to the General Fund in FY22.

Our current state funding is using October #1 data. The district has received a negative adjustment for FY19 in FY20 in the amount of $56,406, this is important as this will affect the total funding for FY20 and future years of the forecast.

8

Future State Budgets: Our funding status for the FY22-24 will depend on two (2) new state budgets which are unknown. With the change to the state funding and no growth for the FY20-21 state amounts, we are not increasing the state funding for any year of the forecast. We believe our current state funding estimates for FY20-24 are reasonable and that we will adjust the forecast in the future when we have authoritative data to work with.

Casino Revenues: On November 3, 2009 Ohio voters passed the Ohio casino ballot issue. This issue allowed for the opening of four (4) casinos, one each in Cleveland, Toledo, Columbus and Cincinnati. As of March 4, 2013, all four (4) casinos are open for business and generating Gross Casino Tax Revenues (GCR). Thirty-three percent (33%) of the gross casino revenue will be collected as a tax. School districts will receive 34% of the 33% GCR that will be paid into a student fund at the state level. These funds will be distributed to school districts on the 31st of January and August each year which began for the first time on January 31, 2013.

The state indicated recently that revenues from casinos are not growing robustly as originally predicted but are still growing slowly as the economy has improved. Actual numbers generated for FY19 statewide were 1,785,583 students at $52.59 per pupil. That is a decline of .36% students from the prior year. For FY20-24 we estimated a .4% decline in pupils to 1,778,441 and GCR increasing to $95.5 million or $55.06 per pupil. We are increasing the amount by 1% each year for the remainder of the forecast.

Category Basic Aid-Unrestricted Additional Aid Items

Basic Aid-Unrestricted Subtotal Ohio Casino Commission ODT
Total Unrestricted State Aid Line # 1.035

FY20 $39,183,226
$1,094,573

$40,277,799 $330,415
$40,608,214

FY21 $39,239,632
$1,214,275

$40,453,907 $335,499
$40,789,406

FY22 $39,215,659
$1,214,275

$40,429,934 $338,854
$40,768,788

FY23 $39,191,446
$1,214,275

$40,405,721 $342,242
$40,747,963

FY24 $39,166,992
$1,214,275

$40,381,267 $345,665
$40,726,932

B)	Restricted State Revenues – Line #1.040
HB64 continues funding two restricted sources of revenues to school district which are Economic Disadvantaged Funding and Career Technical Education funding. We have incorporated a 1% increase each year of the forecast for FY18-22.

Category Economically Disadvantaged Aid Career Tech - Restricted

Total Restricted State Revenues Line #1.040

FY20 $2,146,388
$250,905

$2,397,293

FY21 $2,146,388
$250,905

$2,397,293

FY22 $2,167,852
$253,414

$2,421,266

FY23 $2,189,531
$255,948

$2,445,479

FY24 $2,211,426
$258,507

$2,469,933

C) Restricted Federal Grants in Aid – line #1.045
The district does not expect to receive any federal unrestricted funds in the general fund.

9

SUMMARY OF STATE REVENUES

SUMMARY Unrestricted Line # 1.035 Restricted Line # 1.040
Fed. Grants - SFSF & Ed Jobs Line #1.045

Total State Foundation Revenue

FY20 $40,608,214
$2,397,293 $0

$43,005,507

FY21 $40,789,406
$2,397,293 $0

$43,186,699

FY22 $40,768,788
$2,421,266 $0

$43,190,054

FY23 $40,747,963
$2,445,479 $0

$43,193,442

FY24 $40,726,932
$2,469,933 $0

$43,196,865

State Taxes Reimbursement/Property Tax Allocation - Line #1.050 A) Rollback and Homestead Reimbursement
Rollback funds are reimbursements paid to the district from Ohio for tax credits given owner occupied residences equaling 12.5% of the gross property taxes charged residential taxpayers on tax levies passed prior to September 29, 2013. HB59 eliminated the 10% and 2.5% rollback on new levies approved after September 29, 2013. HB66 previously eliminated 10% rollback on Class II (commercial and industrial) property.

Homestead Exemptions are also credits paid to the district from the state of Ohio for qualified elderly and disabled. In 2007 HB119 expanded the Homestead Exemption for all seniors over age 65 years of age or who are disabled regardless of income. Effective September 29, 2013 HB59 changes the requirement for Homestead Exemptions. Individual taxpayers who do not currently have their Homestead Exemption approved or those who do not get a new application approved for tax year 2013, and who become eligible thereafter will only receive a Homestead Exemption if they meet the income qualifications. Taxpayers who currently have their Homestead Exemption as of September 29, 2013 will not lose it going forward and will not have to meet the new income qualification. This will slow the growth of homestead reimbursements to the district, and as with the rollback reimbursements above, increase the taxes collected locally on taxpayers.

b) Tangible Personal Property Reimbursements – Fixed Rate The district no longer receives Fixed Rate reimbursements.

c) Tangible Personal Property Reimbursements – Fixed Sum
HB 64 has continued reimbursement of Fixed Sum TPP reimbursements at current levels through FY17 and will begin a phase out over five years through FY21. There will be no fixed sum TPP reimbursement in FY22. Districts will not lose money due to the phase out. The amount of money the state is cutting its reimbursement by will be added on the local fixed sum millage and collected in local property taxes. This is directly shifting the burden to local tax payers by the state cut in fixed sum TPP reimbursement.

Summary of State Tax Reimbursement – Line #1.050

Category a) Rollback and Homestead b) TPP Fixed Rate
c) TPP Fixed Sum

Total Tax Reimb./Prop. Tax Allocations #1.050

FY20 $2,557,335
$0 $103,081

$2,660,416

FY21 $2,655,003
$0 $51,541

$2,706,544

FY22 $2,675,752
$0 $0

$2,675,752

FY23 $2,677,669
$0 $0

$2,677,669

FY24 $2,690,701
$0 $0

$2,690,701

Other Local Revenues – Line #1.060
Revenues from all other sources are based on historical growth patterns. This revenue largely consists of rental income, tuition payments, Medicaid reimbursements and payments from TIF (Tax Increment Financing) and PILOT (Payments in Lieu of Taxes) programs.

The district expects to receive $300,000 in Medicaid payments each year of the forecast. This is considerably less than the past few years as the catch-up period has ended. The district expects to receive an additional $175,000 for a technology/telecommunication project that is eligible for e-rate funding in FY20.

10

Category TuitionSF-14 &SF-14H Extra Curricular &ClassFees Interest
Medicaid CAFS Cruiser Academy
TIF &PILOT Payments Erate &Other Miscellaneous

Total Line # 1.060

FY20 $1,307,556
$3,965 $200,000 $300,000 $0 $1,750,000 $429,462

$3,990,983

FY21 $1,320,632
$4,282 $200,000 $300,000 $0 $1,750,000 $258,757

$3,833,671

FY22 $1,333,838
$4,625 $200,000 $300,000 $0 $1,750,000 $261,345

$3,849,808

FY23 $1,347,176
$4,995 $200,000 $300,000 $0 $1,750,000 $263,958

$3,866,129

FY24 $1,360,648
$5,395 $200,000 $300,000 $0 $1,750,000 $266,598

$3,882,641

Comparison of Local Revenue and State Revenue

Millions
General Fund Local Revenue Vs. State $48

$46

$44

$42

$40

$38

$36

$34

Act.2017	Act.2018	Act.2019	Est.2020	Est.2021	Est.2022	Est.2023	Est.2024

Local Revenue	State Revenue

The chart above shows that the district has been receiving additional funding from the state from FY17 through FY24. The changes in state funding will hold steady in the remainder of the forecast. The local revenue increased in FY16 with the passing of the levy and will be maintained at that level with the renewal of the levy in FY20.

Short-Term Borrowing – Lines #2.010 & Line #2.020 There are no short term borrowings planned at this time.

Transfers In / Return of Advances – Line #2.040 & Line #2.050
Returns of advances to other funds from the previous year are included in this area. The reserve can only be used for emergencies and must be approved by the Board of Education.

All Other Financial Sources – Line #2.060 & Line #14.010
The district expects to receive $10,000 annually for refunds of prior year expenditures and sale of assets.

Category Refunds & Sale of Assets

FY20 $10,000

FY21 $10,000

FY22 $10,000

FY23 $10,000

FY24 $10,000

11

Expenditures Assumptions

All Operating Expense Categories - General Fund FY20 General Fund Operating Expenditures FY20 $83,728,191

Materials 4%

Capital     Other 1%          1%

Wages 43%

Services 30%

Benefits 21%

Wages – Line #3.010
The district had successful negotiations with both the Certified and Classified staff. The classified staff agreement is for three years with base wages of 2.75% in FY19-FY21. The certified agreement will expire in FY19 with a 2.5% base wage increase. The district is including a base wage increase for forecasting purposes only for the certified staff at the same amount as for the classified staff in FY20 and FY21. The district is estimating base increases of 2.75% in FY22 and 2% in FY23.

The district’s Student Achievement Improvement Plan includes additional staffing in in FY20 for 5 new teachers. The district is estimating an average of 6 retirements per year with replacement of those staff members for the remainder of the forecast.

The district will be paying severance from the 034 fund and will no longer include the amounts within the forecast.

We have recoded expenses that qualify in our plan for use of Student Wellness and Success funding in FY20 of $1,015,184 and an additional $446,681 in FY21, we do expect that this fund will continue in future years.

12

Category Base Wages

FY20 $34,343,945

FY21 $35,191,535

FY22 $36,326,084

FY23 $37,920,919

FY24 $39,312,840

Increases/ Merit Based Pay Steps&Training/Performance Based Pay Growth
Unfunded Recapture Subs&Supplemental Costs Severance
StaffReductions

Total Wages Line 3.010

$944,458 $734,960 $698,728 $0 $731,725 $0
-$1,530,556

$35,923,260

$967,767 $753,099 $337,679 $0 $746,360 $0
-$923,996

$37,072,444

$998,967 $777,378 $294,130 $0 $761,287 $0
-$475,640

$38,682,206

$758,418 $811,508 $300,013 $0 $776,513 $0
-$478,018

$40,089,353

$786,257 $841,295 $306,013 $0 $792,043 $0
-$480,408

$41,558,040

Fringe Benefits Estimates Line #3.02
This area of the forecast captures all costs associated with benefits and retirement costs, with all except health insurance being directly related to the wages paid. The district pays 14% of each dollar paid in wages to either the State Teachers Retirement System or the School Employees Retirement System as required by Ohio law. The Student Wellness Success decreases in salaries affected the benefits by the corresponding percentage of salaries to decrease those areas. There were additional decreases required for insurances as there is not a specific percentage of salary in order to complete the reduction for the total recoding of these items.

A)	STRS/SERS
As required by law the BOE pays 14% of all employee wages to State Teachers Retirement System (STRS) or School Employees Retirement System (SERS).

B)	Insurance
Medical insurance trend is being projected annually at 7% in FY20 with an increase of 0.5% each year for the remainder of the forecast. The trend is based on current plan design, enrollment in the plan and claim history. The insurance committee is working together to review possible options in order to reduce costs for employees and the district.

Patient Protection and Affordable Care Act (PPACA) Costs- the Patient Protection and Affordable Care Act (PPACA) commonly called Obamacare or the Affordable Care Act (ACA), is a United States federal statute signed into law by President Barack Obama on March 23, 2010. It is uncertain to what extent the implementation of PPACA will cost our district in additional funds especially since it is being reviewed carefully at the federal level for amendment or repeal. We are not certain what these added costs may be but Longer-term, a significant concern is the 40% “Cadillac Tax” provision but in December 2017 this was delayed until 2022 by congress. This tax would be imposed on plans whose value of benefits exceeds $10,200 for individual plans and $27,500 for family plans. The rules and implementation of the PPACA is an ongoing issue we are watching closely to evaluate the effect on our district.

C)	Workers Compensation & Unemployment Compensation
Workers Compensation is expected to remain at about .5% of wages FY19 – FY24. The district is a self-insured workers compensation district, which means we only pay claims as they occur. In order for the district to maintain a reserve for claims the amount of premiums will be paid to a self-insurance fund based on a percentage of annual salary. This fund will be evaluated each on the amount of the payments in December. Unemployment is expected to remain at a very low level. The district is a direct reimbursement employer which means unemployment costs are only incurred and due if we have employees who are eligible and draw unemployment.

13

D)	Medicare
Medicare will continue to increase at the rate of increases in wages. Contributions are 1.45% for all new employees to the district on or after April 1, 1986. These amounts are growing at the general growth rate of wages.

Summary of Fringe Benefits – Line #3.020

Category STRS/SERS
Insurance's

FY20 $5,555,391
$11,241,246

FY21 $5,729,211
$11,938,121

FY22 $5,971,819
$12,853,239

FY23 $6,192,971
$13,906,603

FY24 $6,419,699
$15,050,297

Workers Comp/Unemployment Medicare
Other/Tuition

Total Line 3.020

$70,110 $508,826 $64,304

$17,439,877

$71,430 $529,048 $64,304

$18,332,114

$73,212 $558,260 $64,304

$19,520,834

$74,791 $578,715 $64,304

$20,817,384

$76,434 $600,063 $64,304

$22,210,797

Purchased Services – Line #3.030
This category includes payments for contracted services, utilities, gas, electric, property insurance and transportation. Significant payments are made to Community Schools, Open Enrollment and the Educational Choice Voucher program. The chart below shows the depth of the loss of dollars for the district to other districts.

Our Students Leave with Substantial School Choice Dollars

$14,000,000

$12,000,000

$10,000,000

$8,000,000

Community Schools

Tuition & EdChoice

Open Enrollment

$6,000,000

$4,000,000

$2,000,000

$-

Act. 2017	Act. 2018	Act. 2019	Est. 2020	Est. 2021	Est. 2022	Est. 2023	Est. 2024

The district is projecting growth that was outlined within the Student Achievement Improvement Plan in the following areas: Early Learning Instruction services and student data management system, finishing of the floors for the athletic middle school programs, professional development for response to intervention, Connect Ohio Grant, gifted consultant, early teaching instruction consultant, additional middle school athletic

14

transportation costs. The district will be leasing modular classrooms beginning in FY18 through FY21 for $121,057 per year.

In order to better understand where the amounts are spent for services the chart below shows what percentage is for each area within the Purchase Service line.

FY20 Purchase Services

Utilities 4%

Transportation 22%

BaseServices 7%

Legal , Network, Curriculum,Substitutes etc. 14%

CCP, STEM & ScholarshipTransfers 5%

Other Tuition 8%

Open Enrollment Deduction 5%

Community School Deductions 35%

The amounts within the chart below correspond to the FY20 percentage as shown in the graph above.

Category Base Services

FY20 $1,666,028

FY21 $1,716,009

FY22 $1,646,432

FY23 $1,695,825

FY24 $1,746,700

Legal , Network, Curriculum, Substitutes etc. OpenEnrollment Deduction CommunitySchool Deductions
Other Tuition

CCP, STEM &Scholarship Transfers Utilities
Transportation

Total Line 3.030

$3,588,889 $1,218,196 $8,797,050 $2,036,795 $1,256,784 $978,029 $5,629,829

$25,171,600

$3,624,778 $1,230,378 $8,797,050 $2,097,899 $1,294,488 $1,026,930 $5,742,425

$25,529,957

$3,661,026 $1,242,682 $8,797,050 $2,160,836 $1,333,323 $1,078,277 $5,857,274

$25,776,900

$3,697,636 $1,255,109 $8,797,050 $2,225,661 $1,373,323 $1,132,191 $5,974,419

$26,151,214

$3,734,612 $1,267,660 $8,797,050 $2,292,431 $1,414,523 $1,188,801 $6,093,908

$26,535,685

Supplies and Materials – Line #3.040
Supplies and materials are expected to grow by 3% through FY23. The additional supplies for new instructional programs and offerings have been put in place for student growth.

15

Category Supplies

FY20 $2,757,441

FY21 $2,840,164

FY22 $2,925,369

FY23 $3,013,130

FY24 $3,103,524

Textbook/Curriculum Updates

Total Line 3.040

$139,426

$2,896,867

$143,609

$2,983,773

$147,917

$3,073,286

$152,355

$3,165,485

$156,925

$3,260,449

Equipment – Line #3.050
Most Capital Outlay is paid through the Permanent Improvement fund. The district has completed a Capital Outlay plan that includes: FY20-FY24 technology equipment and other items as they are needed. The district has included the replacement of a pick-up truck in FY21. The amounts for the updates at the softball field have been moved to FY20 from FY19 of $300,000. Also in FY20 there will be the E-rate project that was not expected in October for $160,000. Roof repair expenses have been added in FY21 through FY23 in the amount of $500,000 each year and FY23.

Category Capital Outlay
Other

Total Line 3.050

FY20 $1,190,587
$0

$1,190,587

FY21 $1,495,125
$0

$1,495,125

FY22 $1,210,739
$0

$1,210,739

FY23 $1,213,150
$0

$1,213,150

FY24 $1,213,150
$0

$1,213,150

Debt Service – Line #4.050; #4.060;
The district does not have any general fund debt.

Other Expenses – Line #4.300
The category of Other Expenses consists primarily of the County ESC deductions for specialized services provided to the District and Auditor & Treasurer fees. Auditor and Treasurer Fees will fluctuate with real estate revenue collections. The County ESC costs are projected to increase by 3% each year. The Win-Win agreement will expire in FY23 for a deduction of $450,000 in that year.

Category County Auditor & Treasurer Fees County ESC
Audit Fees/Liability Ins/Other Total Line 4.300

FY20 $520,959 -$23,666 $608,707
$1,106,000

FY21 $526,169 -$24,376 $626,968
$1,128,761

FY22 $531,431 -$25,107 $645,777
$1,152,101

FY23 $86,745
-$25,860 $665,150 $726,035

FY24 $87,612
-$26,636 $685,105 $746,081

16

	Capital

Material

Services

Benefits

Wages

		

		

Total Expenditure Categories Actual FY17 through FY19 and Estimated FY20 through FY24

General Fund Operating Expenditures Actual FY2017 Through Estimated 2024

Millions
$100

$90

$80

$70

$60

$50

$40

$30

$20

$10

$0

Act. 2017 Act. 2018 Act. 2019     Est. 2020     Est. 2021     Est. 2022     Est. 2023     Est. 2024

Transfers Out/Advances Out – Line #5.010
This account group covers fund to fund transfers and end of year short term loans from the General Fund to other funds until they have received reimbursements and can repay the General Fund. The district is required to transfer annually $114,100 to the 034 Building Maintenance Fund for the High School OFCC project for maintenance of the building for 38 years. In addition to the OFCC required transfer in FY19 the district will transfer for payments to the appropriate payment funds for Certificate of Participation Notes (COPS) $683,630, turf debt service $200,837, athletic field maintenance $55,000, Severance Fund $350,000 and $400,000 for the Columbus Public Schools Revenue Sharing Agreement. The district will be transferring for these items each year of the forecast; however the amounts may change based on payment schedules.

Category Operating Transfers Out Line #5.010 Advances Out Line #5.020

Total

FY20 $1,399,358
$0

$1,399,358

FY21 $1,114,017
$0

$1,114,017

FY22 $926,265
$0

$926,265

FY23 $927,075
$0

$927,075

FY24 $926,584
$0

$926,584

Encumbrances –Line #8.010
These are outstanding purchase orders that have not been approved for payment as the goods were not received in the fiscal year in which they were ordered. Estimates are based on trends of expenditures and payments.

Category Estimated Encumbrances

FY20 $394,000

FY21 $394,000

FY22 $394,000

FY23 $394,000

FY24 $394,000

Reservations of Fund Balance – Line #9.080
The district is establishing a Fiscal Stabilization policy as a goal of the passage of the levy. The amount within this line will not be permitted to be appropriated unless there is an emergency within the district and will need to be approved by action of the Board of Education.

17

Category Textbooks& Materials-Line 9.010 Capital Improvements-Line 9.020 Budget Reserve -Line 9.030
DPIA-Line 9.040

FY20	FY21	FY22	FY23	FY24
$0	$0	$0	$0	$0 $0	$0	$0	$0	$0 $0	$0	$0	$0	$0 $0	$0	$0	$0	$0

Fiscal Stabilization-Line 9.045 Debt Service -Line 9.05
TaxAdvancesfor Future Year-Line 9.060 State BusPurchases-Line 9.070

Total ReservationsofBalance-Line#9.080

$3,130,607 $0 $0 $0

$3,130,607

$3,169,527	$0	$0	$0 $0	$0	$0	$0 $0	$0	$0	$0 $0	$0	$0	$0

$3,169,527	$0	$0	$0

Ending Unencumbered Cash Balance “The Bottom-line” – Line #15.010
This amount must not go below $-0- or the district General Fund will violate all Ohio Budgetary Laws. Any multi-year contract which is knowingly signed which results in a negative unencumbered cash balance is a violation of 5705.412, ORC punishable by personal liability of $10,000, unless an alternative “412” certificate can be issued pursuant to HB153 effective September 30, 2011.

Category Ending Cash Balance

FY20 $15,786,949

FY21 $14,103,101

FY22 $13,642,430

FY23 $7,941,585

FY24
-$412,009

The chart below shows that the district is not deficit spending until the third year of the forecast which includes the renewal of the levy in 2019. By not deficit spending is allowing the district to increase our ending cash balance and to maintain 45 days of cash each year until FY22.

	

																				

																							

																									

																																	
Act.2017	Act.2018	Act.2019	Est.2020	Est.2021	Est.2022	Est.2023	Est.2024

General Fund Ending Cash Balance FY17 through Estimated FY24 Revenues vs ExpenditureIncluding Renewal of Levy FY

$120,000,000

$100,000,000

$80,000,000

$60,000,000

$40,000,000

$20,000,000

$0

-$20,000,000

Revenue W/Renewals	Expenditures	45 Day Cash Ratio	Ending Cash Balances

True Cash Days
The Government Financial Officers Association (GFOA) recommends, at a minimum, regardless of size, maintain unrestricted budgetary fund balance in their general fund of no less than two months of regular general fund operating revenues or regular general fund operating expenditures. Based on the current fund balances, without the renewal of the levy and with deducting the Fiscal Stabilization Fund the district will not have the

18

sixty (60) day balance at the end of FY21.This chart below shows the unencumbered cash balance and does not include the levy renewal.

Ending Cash Balance in True Cash Days

80

70
57 60

50

40

30

20

10

0
(10)	Act. 2017

71

Act. 2018

79

Act. 2019

68

Est. 2020

59

Est. 2021

55

Est. 2022

31

Est. 2023

Est. 2024 (2)

Conclusion

The Groveport Madison School District is very appreciative of the support from the voters on the passage of the renewal levy on November 5, 2019 for the continuing collection of the 6.68 mill levy. The passage of the levy will allow the district administration to plan for the future and to help maintain fiscal stability for the district.

The district was very fortunate to have received additional state funding in HB64 (FY16 and FY17) and HB49 (FY18 and FY19). The increases have been beneficial to the overall operations of the district and for the education of our students. Being that 53.6% of the funding for the district is from state dollars this increase is very beneficial to the overall operations for the education of our students. However, we are disappointed that HB166 does not provide additional non-restricted funding to our district to help offset the ongoing phase out of TPP reimbursements enacted by HB64 and SB 208.

The district administration notes that this current state biennium budget is why we have to be mindful and watch each state budget carefully as HB166 has not provided new unrestricted operating funds to our district. But they will also need to be mindful that there are many risks and uncertainties that will need to be considered in future planning as there are two new state biennium budgets could affect us positively or negatively for FY22 through FY24.

As you read through the notes and review the forecast, remember that the forecast is based on the information that is known at the time that it is prepared.

19