Shared Flashcard Set

Details

School finance
Information on public funding of IL school for PAR students.
56
Journalism
Graduate
12/12/2011

Additional Journalism Flashcards

 


 

Cards

Term
Triple approval that must take place for Life Safety Projects/Fire Prevention Projects?
Definition
Architect, Regional Office of Education, State Board of Education
Term
What is BINA?
Definition
Bond Issue Notification Act: it says school districts must have a hearing for any bonds that do not require a referendum.
Term
How are Fire and Safety Bonds sold?
Definition
No referendum needed. A district must have "triple approval" stating a "life safety expenditure" to use the funds.
Term
What is the max amount that can be levied in a tort fund?
Definition
Tort funds are unlimited within "allowable expenditures."
Term
List 3 funds where interest earned cannot be mored into other funds.
Definition
Life safety fund, tort immunity fund, IMRF fund
Term
When does the school budget have to be completed?
Definition
The last day of the first fiscal quarter, Sept. 30.
Term
What is a backdoor referendum?
Definition
Requires a posting to be place in the newspaper ("the black box") by the district superintendent requesting a referendum to sell bonds. Upon this advertisement, 10% of the district voters have 30 days to bring a petition opposing the referendum. If no opposition, the school can sell the bonds.
Term
Working cash bond
Definition
These bonds require a backdoor referendum and it has its own separate debt limitation (85% of last years ed fund extension, plus 85% of last years CPPRT).
Term
What is CPPRT and how is it determined for a school district?
Definition
Corporate Personal Property Replacement Tax: a tax PERCENTAGE established in 1979 that is still used today. It is a tax on corporate net income collected by the Dept. of Revenue and distributed to the schools.
Term
Why Fire Prevention and Safety Bonds don't require voter approval?
Definition
So districts can make the necessary repairs to keep buildings safe for kids.
Term
What is the difference between abatement and abolishment in regards to working cash fund?
Definition
Abatement - transfer part, but not all of funds into other funds to pay expenses.
Abolishment - in June, funds may all be transferred out of the working cash fund into other funds, ie Ed fund.
Term
What are the three legs of the Golden Triangle?
Definition
1 - Sell a Debt Certificate. Put the money in a savings account, does not qualify to be paid from bonded interest. It must be made immediately CALLABLE (can be paid off at any time).
2 - Sell a Funding Bond. This is usually used to pay off debt. it can be paid for by the bond and interest fund. You must have a backdoor referendum to buy this.
3 - Take the Funding Bond and pay off the debt certificate. This leaves you with $1 million in a savings account that it unrestricted.
Term
What are the three ways a school district can raise money?
Definition
Cut expenditures, raise tax rates, or sell bonds
Term
Difference between a levy and an extension?
Definition
A levy is the tax revenue that you ASK for. An extension is the actual tax revenue that you RECEIVE.
Term
What is an EAP?
Definition
Employee Assistance Program, started by districts for employees. They usually consist of free psychological counseling for anyone working in the district. Can be paid with the TORT fund.
Term
the POWER of EAV
Definition
Districts with higher equalized assessed valuation generate more money with LESS taxes.
Term
What are the three "nickel" levies?
Definition
Working cash, life safety, lease
Term
What is an aggregate levy?
Definition
How much money you go last year, minus the Bond & Interest fund. If you increase it more than 5% you have a BINA hearing and "black box."
Term
Rule of 75%
Definition
About 75% of voters do not have children in public school. This makes is difficult for schools to pass a referendum.
Term
What is the debt limitation for Working Cash Bonds?
Definition
85% of last years Ed fund extension, plus 85% of last years CPPRT.
Term
What is DSEB?
Definition
Debt Service Extension Base, a single number amount of principal and interest you owed in non-referendum bonds on the day tax caps became effective in your district. Unless raised by referendum, it is the permanent ceiling amount on the districts bond sales.
Term
What is bonded debt limit?
Definition
In a unit district, 13.8% of the district's equalized assessed valuation. In an elementary or high school district it's 6.9% of its EAV.
Term
Formula for determining poverty grant for districts?
Definition
Determined by the 3 year average of the DHS count divided by the ADA. DHS count includes kids in any of these 4 programs: food stamps, Medicaid, child care, or TANF.
Term
Four financial incentives for districts to reorganize?
Definition
1. Teacher salary equalization
2. GSA equalization
3. Debt difference
4. $4,00 incentive to district for each full-time ceritfied teacher
Term
What is a levy and when is it due?
Definition
The amount of money you ASK for. Due to the county clerk the last Tuesday in December.
Term
What is a disincentive?
Definition
Penalty districts pay for doing something that would help the district. Like reorganization can give up levy power, transportation funding, working cash, life safety, and lease fund.
Term
What is the importance of Blase v. State of IL?
Definition
in regards to IL Constitution Article X, that says the state will have the PRIMARY responsibility for funding schools. Which is not to be interpreted to mean the state will fund 51% of the ed costs, just that it is a goal.
Term
School debt is limited to 13.8% of a district's EAV, but there are exceptions. List 3.
Definition
1. areas with super high growth in student population may borrow up to 15% of its EAV.
2. a referendum passed by 2/3 majority may allow a district the ability to go up to 15% of its EAV.
3. With a construction grant, the debt limit may exceed the amount the Capitol Development Board certified as the districts local share.
4. legislative exception
Term
What do funding bonds pay?
Definition
District obligations
Term
What is performance contracting?
Definition
Using a company to update/repair current structure (lights) that will save money over time (energy bills). Schools may take up to 20 years to pay off such debt.
Term
What are funding bonds?
Definition
Bonds limited to the amount of outstanding claims against the district which cannot be paid dues to insufficient funds. Recently used to cover liabilities of early retirement, payments to TRS insurance premiums, textbooks, and other ordinary operating expenditures for troubled districts.
Term
How many school districts at the end of WWII?
Definition
about 12,000
Term
Name 7 of the 11 types of school consolidation
Definition
1. unit to unit consolidation
2. dual to dual consolidation
3. unit to dual consolidation
4. annexation
5. unit district conversion
6. dissolution
7. multi-unit conversion
8. high school deactivation
9. combined HS unit district
10. optional elementary unit district
11. co-operative high school attendance center
Term
What is the Bond & Interest fund?
Definition
Self-liquidating fund (pays for itself). It pays the principal and interest on the bonds that you sell. The only limit is the "bonded debt fund" which is 13.8% of your EAV.
Term
What does IMRF stand for?
Definition
IL Municipal Retirement Fund, for non-certified staff with 600 hours per year. Cannot move money from this fund.
Term
"Rule of thumb" for budgets
Definition
Over-estimate what you think you're going to spend, under-estimate what you think you're going to receive.
Term
What is EFAB?
Definition
Education Funding Advisory Board, appointed by gov. to recommend the foundation level for districts with high poverty levels.
Term
3 "C's" for cutting money?
Definition
Cut staff, cut programs, close buildings
Term
Explain the 3 formulas for GSA
Definition
1. Foundation formula: most common; districts have less than 93% of the foundation level available in local resources.
2. Alternative formula: districts that have at least 93% but less than 175% of the foundation level available in local revenue.
3. Flat grant: for elite districts that generate more than 175% of the foundation level and receive a flat grant.
Term
Three main sources of revenue and who controls them?
Definition
1. Congress control fed. funding
2. GA controls the GSA
3. school board controls the local revenue
Term
3 types of transportation
Definition
vocational, special ed, regular
Term
List four of the special ed items on the budget
Definition
1. personnel
2. transportation
3. private tuition
4. extraordinary services
5. orphanage tuition
Term
Charter schools
Definition
A private school that is funded and run in a public district. Contracted and accountable to the district, not the state. Must get funding outside GSA, but state provides "seed money."
Term
What is THIS?
Definition
Teacher health insurance supplement, pays for TRIP
Term
What does equity mean?
Definition
That the same amount of money is given to every kid.
Term
How do schools fund free lunches?
Definition
- Dept. of Ag. buys commodities and gives to schools
- students and teachers buy lunches
- fed. assistance for each student, more for the free/reduced lunches
Term
Truth in Taxation Act
Definition
If a district raises 5% or more than last year, they must hold a public hearing to approve the lecy and put a public notice in the paper ("black box").
Term
Double whammy
Definition
In tax capped districts 1) they don't receive the true amount of EAV 2) the state does calculate GSA on that true EAV, not the capped EAV
Term
What does adequacy mean?
Definition
the minimum amount of money or services guaranteed to every student.
Term
What is PTELL?
Definition
Property Tax Extension Limitation Law, "tax caps" that limit how much a district can receive from their property taxes.
Term
3 most important funds a school district has in AFR
Definition
1. Ed fund, pays salaries
2. Building Operations and Maintenance, supplies, utilities, workers
3. Transportation fund, pays cost of transporting students
Money can be MOVED between these funds.
Term
What is proration?
Definition
Occurs when a district is promised an amount of money, but the state runs out. The district receives a smaller (prorated) proportion of the money they were promised. Maybe 90% of the 80% they were promised.
Term
The nine funds schools have access to?
Definition
1. Ed
2. IMRF
3. Op. and Building M.
4. Fire and Safety
5. Working Cash
6. Transportation
7. Bond and Interest
8. Tort
9. Capital projects
Term
Refunding bonds?
Definition
It's refinancing. They are often issued to restructure the district's current debt bruden
Term
Tort judgment funding bonds
Definition
Tort is a legal remedy. Bons issued w/o referendum for the payment of tort judgments against the district.
Term
ADA
Definition
Average daily attendance, calculated by last 3 years of the school year
Supporting users have an ad free experience!