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Meeting Date:
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10/26/2023 - 5:30 PM
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Category:
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Report of the Committee on Accountability, Finance, and Personnel
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Type:
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Action
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Subject:
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11. Report with Possible Action on Strategies Used to Maximize the Fiscal Year 2023-24 State Aid
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Strategic Plan Compatibility Statement:
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Goal 3 Effective and Efficient Operations
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Attachments
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File Attachment:
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Background:
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One of the Board-approved budget parameters each year is to maximize the use of the revenue limit. To help accomplish this the MPS budget allocates the full extent of the revenue limit. Revenue limit is made up of state aid and property taxes.
There are three district factors that are used in the calculation of State General Aid which is also called Equalization Aid. The three district factors are equalized property value, membership, and spending (shared cost) from the prior year. Shared cost can be defined as expenditures for which the district has no other revenues except for local property tax and Equalization Aid. When the district increases spending in these two categories it helps maximize the amount of State Equalization Aid the district will receive the next year.
Administrative Policy 3.11 gives the Office of Finance authorization to oversee investment decisions. The district has Board-approved investment policies that include:
• Other Post-Employment Benefits (OPEB)
• Long-term Capital Improvement Trust Fund
The district invested in both OPEB and the Long-term Capital Improvement Trust Fund in fiscal year 2023. That investment counts toward shared costs. The shared costs help maximize State General Aid in fiscal year 2023.
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Fiscal Impact Statement:
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This item reports on investments made in the amount of $1,000,000 to Other Post-Employment Benefits (OPEB) and $60,000,000 to the Long-term Capital Improvement Trust Fund to increase our eligibility for State General Aid in fiscal year 2023-24 based on fiscal year 2022-23 shared cost expenditures.
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Implementation and Assessment Plan
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Recommendation:
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Your Committee recommends directing that the Administration, in consultation with the Office of Board Governance and the Office of Accountability and Efficiency, bring a report regarding, and recommendations for the use of, the long-term capital improvement trust fund. The report shall include, but not be limited to:
- the balance of the long-term capital improvement trust fund; and
- analysis of eligible expenditures under the parameters of the trust
The recommendation for use shall reflect prioritization through and equity lens and include, but not be limited to:
- Facility condition and needs, which may include, but not be limited to, outstanding ESSER projects, deferred maintenance, and HVAC improvements; and
- Consideration of capacity preservation and expansion in alignment to the District's strategic plan; and
- Consideration of needs, based on forecasted future enrollments; and
That the report and recommendations be brought back to the Board no later than the February 2024 Board cycle.
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Approvals:
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Recommended By:
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Signed By:
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Jacqueline M. Mann, Ph.D. - Board Clerk/Chief Officer
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