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
Felicia Drummey, Treasurer/CFO

May 13, 2020

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 Fd 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
	
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
-	-	-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%
	
$31,452,770           $32,094,291           $32,980,691           $33,963,142           $34,948,228 $4,241,973            $4,733,228            $4,774,393            $4,822,736            $4,869,246 $0                         $0                        $0                        $0                         $0 $39,620,338           $39,130,348           $40,821,542           $40,876,100           $40,856,113 $2,272,847            $2,272,847            $2,295,576            $2,318,532            $2,341,717 $0                         $0                        $0                        $0                         $0 2,628,457              2,593,505              2,584,242              2,608,157              2,655,595
4,440,983	3,958,671	3,893,558	3,897,692	3,902,625
	
	83,886,625	83,476,450	85,102,221
	0.7%
	84,657,368	84,782,890	87,350,002	88,486,359	89,573,524

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 -                           -                           -                           -                           --                           -                           -                           -                           --                           -                           -                           -                           -
$160,000	$160,000	$10,000	$10,000	$10,000
	
	1,850,484	9,833	25,775
	31.3%
	160,000	160,000	10,000	10,000	10,000
	
	85,737,109	83,486,283	85,127,996
	-0.3%
	84,817,368	84,942,890	87,360,002	88,496,359	89,583,524

$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%
	
$35,982,450           $37,529,588           $40,308,898           $41,783,390           $43,322,210 $17,462,961           $19,121,171           $20,829,879           $22,214,898           $23,680,673 $25,163,098           $25,507,631           $25,740,311           $26,099,912           $26,469,204 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%
	83,801,963	87,766,049	92,315,214	95,202,869	98,691,767

2,291,973              1,814,325              1,803,537 -                           -                           -
-	-	-
	
-10.7% 0.0%
0.0%
	
$1,400,358            $1,114,017               $926,265               $927,075               $926,584 -                           -                           -                           -                           -
-	-	-	-	-
	
	2,291,973	1,814,325	1,803,537
	-10.7%
	1,400,358	1,114,017	926,265	927,075	926,584
	
	79,448,918	80,065,968	82,612,723
	2.0%
	85,202,321	88,880,066	93,241,479	96,129,944	99,618,351

6,288,191	3,420,315	2,515,273
	
-36.0%
	
(384,953)	(3,937,176)	(5,881,477)	(7,633,586)	(10,034,826)

7,051,465	13,339,656	16,759,971
	
57.4%
	
19,275,244	18,890,291	14,953,115	9,071,638	1,438,052

	13,339,656	16,759,971	19,275,244
	20.3%
	18,890,291	14,953,115	9,071,638	1,438,052	(8,596,774)

	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%
	
15,365,684	11,389,588	8,677,638	1,044,052	(8,990,774)

5/12/2020 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

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

12,343,768	15,624,177	17,791,190
	
20.2%
	
15,365,684	11,389,588	8,677,638	1,044,052	(8,990,774)

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

-
	
0.0%
	
-	-	-	-	-
	
	12,343,768	15,624,177	17,791,190
	20.2%
	15,365,684	11,389,588	8,677,638	1,044,052	(8,990,774)

5/12/2020 Groveport Madison - 046979	2

Groveport-Madison School District – Franklin County Notes to the Five Year Forecast General Fund Only May 13, 2020

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. 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 state funding to all 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 May 2020 filing.

Economic Outlook during the COVID-19 Global Pandemic
This five-year forecast is filed in the midst of a health and financial struggle that encompasses our state, country and global economy. The district is following events and video conferences daily to help determine how to maintain continuity of services to our students and staff as we play a vital role in our community. State and local resources are going to be under extreme stress as we continue through and eventually recover from the pandemic. We have drawn upon our experiences in projecting revenues and expenses from the Great Recession of 2008, but there is no historic data or situation to compare to what the district is facing now. That makes it extremely challenging to project where our finances will be through fiscal year 2024 as noted in this forecast. Given the requirement in Ohio Law that we file a forecast in May that goes through June 2024, we are using the best and most recent reliable data available to us.

May 2020 Updates:

Revenues FY20:
The overview of revenues shows that we are substantially on target with original estimates at this point in the year. Total General Fund revenues (line 1.07) are estimated to be $84,657,368 or.58% lower than the November forecasted amount of $85,153,861.

The decrease in revenue estimate is from the state funding cut of 2.67% in May 2020. This de crease will have a negative effect on revenues through the entire forecast period. All other areas of revenue are tracking as anticipated for FY20 based on our best information at this time.

Expenditures FY20:
Total General Fund expenditures (line 4.5) are estimated to be $83,801,963 for FY20 which is above the original estimate of $83,728,191 in the November forecast by 0.09%. The expenditure lines most significantly below projections are Personnel Services (line 3.01) and Fringe Benefits (line 3.020) due to lower than anticipated amounts being recoded to the Student Wellness and Success Fund. This will have a negative effect on the long term forecast.

Unreserved Ending Cash Balance:
With revenues increasing slightly over estimates and expenditures ending below estimates, our ending unreserved cash balance June 30, 2020 is anticipated to be roughly $15.3 million. The ending unreserved cash balance on Line 15.010 of the forecast is anticipated to be a positive accumulative balance through 2023 if

3

assumptions we have made for state aid in future state budgets remain close to our estimates, and there are no future state budget cuts to our funding.

Forecast Risks and Uncertainty:
In addition to the above noted uncertainty due to the COVID-19 Pandemic, a five-year financial forecast typically has inherent risks and uncertainties. This is due to normal economic uncertainties and 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 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 52.59% of district revenues, which means it is a significant area of risk to revenue. The state has made a reduction for the last six weeks of FY20 of 2.67% of the districts state foundation aid; we expect that there will be another 4% reduction in FY21 due to drastically reduced state revenue because of the COVID-19 pandemic. Additional future risk comes in FY22 and beyond if the state economy worsens or if the funding 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. We continue to watch closely the EdChoice Voucher legislation. HB197 passed in March 2020 freezes EdChoice eligibility of 517 buildings for the school year of 2019-2020. The district has 4 school buildings that are designated as underperforming during that year but the measures used by the state could be changed for the future. 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.	Franklin County will experience a reappraisal update in the 2020 tax year to be collected in 2021. The estimated increase in 2020 update may increase overall assessed values by $87.38 million or an increase of 10.07%. There is however always a minor risk that the district could sustain a reduction in values in the next appraisal update but we do not anticipate that at this time.

IV.	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 47.41% of the district’s resources. We believe there is a low risk that local collections would fall below projections in the forecast.

V.	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.

4

VI.	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.

General Fund Revenue, Expenditure and Ending Cash Balance

	

	

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 Felicia Drummey, 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	$ 84,657,368

Other State
	
Local Sources     47.41%
	
3.10%

Real Estate Taxes State Foundation	37.15%
49.49%

PUPP Tax State Sources	5.01%
52.59%
Other Local 5.25%

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. The amounts of the new construction in 2019 collect in 2020 is less than what was included in the abatement file, therefore we are going to include only half of the abatement totals as estimates for future years of the forecast.

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 12% 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 YEAR2019 COLLECT2020
$527,724,490 $339,883,930

Estimated TAX YEAR2020 COLLECT2021
$591,501,429 $355,486,814

Estimated TAX YEAR2021 COLLECT2022
$591,951,429 $364,953,719

Estimated TAX YEAR2022 COLLECT2023
$592,401,429 $388,256,042

Estimated TAX YEAR2023 COLLECT2024
$622,471,500 $398,527,852

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

$77,340,670 $0 $944,949,090

$77,840,670 $0 $1,024,828,913

$78,340,670 $0 $1,035,245,818

$78,840,670 $0 $1,059,498,141

$79,340,670 $0 $1,100,340,022

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.

Beginning in FY20 the district began posting the Public Utility Personal Property Tax (PUPP) in line #1.020 as recommended in the Uniform School Accounting System.

Due to the COVID-19 pandemic we may see a decrease in taxes received in August 2020 due to the higher unemployment causing the constituents to not be able to make real estate tax payments on time. If taxes are not paid on time in 2020, then in future years the amount of delinquencies will be increased and we will need to monitor this for each forecast period for the next couple of years.

Category
Est. General Property Taxes Line #1.010

FY20 $31,452,770

FY21 $32,094,291

FY22 $32,980,691

FY23 $33,963,142

FY24 $34,948,228

Estimated Public Utility Personal Property 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. 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.

Category Public Utility Personal Tax

Total Line # 1.020

FY20 $4,241,973

$4,241,973

FY21 $4,733,228

$4,733,228

FY22 $4,774,393

$4,774,393

FY23 $4,822,736

$4,822,736

FY24 $4,869,246

$4,869,246

7

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. The renewal of the levy is not included in the current forecast as it does not expire within this forecast.

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 (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.

Due to the COVID-19 pandemic state funding has been cut for FY20 by $1,112,621 or a 2.67% in the last three payments of the fiscal year and we expect another cut of $1,665,480 or 4% in FY21 with future state revenues that could be reduced as a result of the pandemic.

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 $219,333 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 $1,444,613 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

8

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 April #2 data. The district has received two negative adjustments for FY19 in FY20 in the amount of $72,320, this is important as this will affect the total funding for FY20 and future years of the forecast.

Future State Budgets: Our funding status for the FY22-24 will depend on two (2) new state budgets which are unknown. Prior to COVID-19 the district would have seen no growth in state funding for the FY20-21 due to the proposed decreases 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 $53.82 per pupil. Due to the COVID-19 closing the casinos in 2020 we are reducing the amount of funding in FY21 by 40% then increasing the amount in FY22 by 25%, FY23 by 32% and 1% in FY24 as we go through the next few years we will adjust as the funding information is available.

Category Basic Aid-Unrestricted Additional Aid Items

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

FY20 $38,179,137
$1,118,261

$39,297,398 $322,940
$39,620,338

FY21 $37,698,601
$1,237,963

$38,936,564 $193,784
$39,130,348

FY22 $39,341,349
$1,237,963

$40,579,312 $242,230
$40,821,542

FY23 $39,318,393
$1,237,963

$40,556,356 $319,744
$40,876,100

FY24 $39,295,208
$1,237,963

$40,533,171 $322,942
$40,856,113

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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 $2,021,876
$250,971

$2,272,847

FY21 $2,021,876
$250,971

$2,272,847

FY22 $2,042,095
$253,481

$2,295,576

FY23 $2,062,516
$256,016

$2,318,532

FY24 $2,083,141
$258,576

$2,341,717

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

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 $39,620,338
$2,272,847 $0

$41,893,185

FY21 $39,130,348
$2,272,847 $0

$41,403,195

FY22 $40,821,542
$2,295,576 $0

$43,117,118

FY23 $40,876,100
$2,318,532 $0

$43,194,632

FY24 $40,856,113
$2,341,717 $0

$43,197,830

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.

10

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 $2,499,605
$0 $128,852

$2,628,457

FY21 $2,516,194
$0 $77,311

$2,593,505

FY22 $2,584,242
$0 $0

$2,584,242

FY23 $2,608,157
$0 $0

$2,608,157

FY24 $2,655,595
$0 $0

$2,655,595

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.

In FY20 the interest income has been greater than expected with an increase of $450,000; however, this we do not expect this to be the case in future years. We have reduced FY21 interest by 50% and FY22 by another 25% due to the rapid reduction in interest rates to help stimulate the economy due to the COVID-19 pandemic and a 2% decrease in FY23 and FY24 for declining cash balances.

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.

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 $650,000 $300,000 $0 $1,750,000 $429,462

$4,440,983

FY21 $1,320,632
$4,282 $325,000 $300,000 $0 $1,750,000 $258,757

$3,958,671

FY22 $1,333,838
$4,625 $243,750 $300,000 $0 $1,750,000 $261,345

$3,893,558

FY23 $1,347,176
$4,995 $231,563 $300,000 $0 $1,750,000 $263,958

$3,897,692

FY24 $1,360,648
$5,395 $219,984 $300,000 $0 $1,750,000 $266,598

$3,902,625

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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 are due to cuts from the COVID-19 pandemic in FY20 and FY21 with no increase for FY22-FY24.

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. The district is expecting refunds in FY20 and FY21 for transportation fees of $150,000 each year.

Category Refunds & Sale of Assets

FY20 $160,000

FY21 $160,000

FY22 $10,000

FY23 $10,000

FY24 $10,000

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Expenditures Assumptions

All Operating Expense Categories - General Fund FY20 General Fund Operating Expenditures FY20 $83,801,963

Materials 3.46%

Capital             Other 1.42%            1.32%

Wages 42.94%

Services 30.03%

Benefits 20.84%

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 FY22 with a 2.75% base wage increase in FY20 through FY22. The district is estimating base increases of 2.75% in FY22 for classified staff and 2% in FY23 and FY24 for all employees.

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 $955,994 and an additional $191,199 in FY21, we do not know if this fund will continue in future years and are recoding them back into the general fund in FY22.

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Category Base Wages

FY20 $34,343,945

FY21 $35,383,796

FY22 $36,783,228

FY23 $39,547,611

FY24 $41,006,877

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
-$1,471,366

$35,982,450

$973,054 $757,213 $337,679 $0 $746,360 $0
-$668,514

$37,529,588

$1,011,539 $787,161 $1,441,323 $0 $761,287 $0
-$475,640

$40,308,898

$790,952 $846,319 $300,013 $0 $776,513 $0
-$478,018

$41,783,390

$820,138 $877,547 $306,013 $0 $792,043 $0
-$480,408

$43,322,210

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.

The Further Consolidated Appropriations Act of 2020, included a full repeal of three taxes originally imposed by the Affordable Care Act (ACA): the 40% Excise Tax on employer-sponsored coverage (a.k.a. “Cadillac Tax”), the Health Insurance Industry Fee (a.k.a. the Health Insurer Tax), and the Medical Device Tax.

The district is recoding additional insurance expenses to the SWSF 467 Fund of $33,257 in FY21 and $17,228 in FY21, these funds will be returned in FY22.

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.

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.

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Summary of Fringe Benefits – Line #3.020

Category STRS/SERS
Insurance's

FY20 $5,563,678
$11,254,267

FY21 $6,437,272
$12,008,325

FY22 $6,860,329
$13,231,926

FY23 $7,153,352
$14,317,479

FY24 $7,416,430
$15,496,098

Workers Comp/Unemployment Medicare
Other/Tuition

Total Line 3.020

$70,169 $510,543 $64,304

$17,462,961

$71,888 $539,382 $64,304

$19,121,171

$74,839 $598,481 $64,304

$20,829,879

$76,485 $603,278 $64,304

$22,214,898

$78,198 $625,643 $64,304

$23,680,673

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 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.

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Transportation 22%

FY20 Purchase Services

BaseServices 7%

Legal , Network, Curriculum,Substitutes etc. 15%

Utilities 4%

ScholarshipTransfers 7%

Open Enrollment Deduction 5%

CCP & STEM 1%

Other Tuition 3%

Community School Deductions 36%

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

$3,754,975 $1,168,673 $9,171,650 $674,369 $277,723 $1,841,822 $978,029 $5,629,829

$25,163,098

$3,792,525 $1,180,360 $9,171,650 $694,600 $286,055 $1,897,077 $1,026,930 $5,742,425

$25,507,631

$3,830,450 $1,192,164 $9,171,650 $715,438 $294,637 $1,953,989 $1,078,277 $5,857,274

$25,740,311

$3,868,755 $1,204,086 $9,171,650 $736,901 $303,476 $2,012,609 $1,132,191 $5,974,419

$26,099,912

$3,907,443 $1,216,127 $9,171,650 $759,008 $312,580 $2,072,987 $1,188,801 $6,093,908

$26,469,204

Supplies and Materials – Line #3.040
Supplies and materials are expected to grow by 3% through FY24. The additional supplies for new instructional programs and offerings have been put in place for student growth.

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

16

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 FY24 in the amount of $500,000 each year.

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

	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
$120

$100

$80

$60

$40

$20

$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 FY20 the district will

17

transfer for payments to the appropriate payment funds for Certificate of Participation Notes (COPS) $685,700, turf debt service $194,558, athletic field maintenance $55,000, and Severance Fund $350,000. 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 $1,400,358
$0

$1,400,358

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 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.

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 $15,365,684

FY21 $11,389,588

FY22 $8,677,638

FY23 $1,044,052

FY24
-$8,990,774

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.

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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 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	71	79	66

57
60	47

34 40

20	4

0

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

(20)

(40)	(33)

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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 53.21% 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, especially with the COVID-19 pandemic reducing the districts state foundation payments in FY20 and projected decreases in FY21.

The district will receive funding through the CARES Act of approximately $1,958,029 that is to be used for help due to the COVID-19. However, we have not received how these funds will be dispersed or if they will be included with the districts five-year forecast. We will monitor this and all other funding that is affecting our forecast from the pandemic.

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.

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