Board Budget Development Committee Meeting Report – December 11, 2017

Minutes approved from October 23rd meeting.


Annual Audit Presented

  • An audit of the financial statements of Natrona County School District No. 1 (the ‘‘District”) as of and for the year ended June 30, 2017, and have issued our report thereon dated November 27, 2017
  • Audit is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement.
  • Includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting.
  • Internal control at NCSD is looked at solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

General Fund Revenues and Expenditures

  • Graphs provided to explain visual aspects of General Fund Revenues and Expenditures over 10 year period.$file/NCSD%20Graph%20Analysis.pdf
  • 33% increase in revenue over 10 year period
  • 27% increase in expenditures over 10 year period
  • 12,700 ADM
  • General Fund Cost of Operations Per Day – went up due to capital leases on PIC equipment and buses and payment requirements of district
  • General Fund Number of Days of Operating Reserves equals 40 day

No questions or final thoughts on annual audit report

Report on State Activities

  • Recalibration is underway- The State of Wyoming Select Committee on School Finance Recalibration met on November 29, 30 and December 1, 2017 to continue their work on recalibrating the current funding model as part of the Legislature’s attempt to address the $350 million shortfall to education funding.
  • Wyoming state model was found to be adequate in comparison or aligned with
  • Recommendations viewed are draft recommendations- to be given to select committee for an update
  • Equity student was performed- has the funding model been equitable among all districts in the state? Consensus- Wyoming model is pretty fair
  • Special Education- APA recommended to continue the 100% reimbursement of approved expenditures.
  • Several transportation recommendations to create efficiencies were made- reimbursable costs, shared services, and increased use of technology for bus capacity and routing decisions
  • Consolidation and Shared Services Study- not a lot of support for this due to the rural nature of Wyoming and other reasoning
  • Implementation of Alternative Approaches and Model Recommendations- APA implemented the three alternative funding approaches and made draft recommendations for an adequate funding model. The draft recommendations can be found at the following link:
  • Upcoming Recalibration Events and Meetings
    • December 15, 2017 – APA provides draft report and proposed funding model
    • January 1, 2018 – Deadline for APA to gather stakeholder feedback
    • January 12, 2018 – APA submits final report to Select Committee
    • January 23-24, 2018 – APA presents final report and proposed funding model to Select Committee
  • Joint Education Committee Update
  • 18LSO-0220 WD 0.5 School finance amendments
  • Table 1. Estimated Impact to Proposed Amendments in 18LSO-0220 WD 0.5 Using FY 2018 Funding Model ($ Millions).
Proposed Amendments to Funding Model Est. FY 2018
1) Model ADM to be based at the district-level using the greater of the district’s prior year or three-year average ADM($10.77)
2) The repeal of W.S. 21-13-324, teacher extra compensation reimbursements($0.20)
3) Modifying the groundskeepers formula to provide groundskeepers resources for district- level sites based upon ten percent of the amount calculated for elementary, middle and high school sites($3.01)
4) The repeal of student assessment funding at an amount equal to $25 per funding model ADM($2.35)
Interaction differences of all proposed amendments to funding model$0.03
Grand Total Including Interaction Differences ($16.30)

Budget Development Update

  • The following is an update on actions taken in preparation of the development of the fiscal year 2019 budget.
  • Update on the One-Time-Only Enhanced Early Retirement Notification program 2018 is 84, 2019 is 38, 2020 is 116 for a total of 238
  • Actions taken to realize savings from the closure of schools and programs – Total estimated savings $2.5 Million
  • Number of positions saved at NCSD due to attrition since 2014 is 108

Board​ ​Budget​ ​Committee​ ​​ ​December​ ​11,​ ​2017 Insurance​ ​Rate​ ​Increase​ ​Update

  • Employee Health Insurance Update provided by Ryan Kelly, Director Business Services
  • Natrona County School District #1 participates in the State of Wyoming’s Employee Group Insurance Plan. The Employee Group Insurance (EGI) Department administers the plan on a calendar year basis.
  • Current plan, premium rates, enrollment elections are in effect from January to December each year.
  • Open enrollment occurs for employees from October 1 to November 30 each year.
  • Each year, EGI makes recommendation to the State on premium levels.
  • Due to increased costs for medical insurance, a moderate increase to premiums is typically expected every year.
  • In calendar year 2016 there was a rate increase of approximately 5%.
  • In order to continue to spend down premium reserve levels there was no rate increase proposed in calendar year 2017.
  • We​ ​estimate​ ​the​ ​impact​ ​to​ ​the​ ​district​ ​budget​ ​to​ ​be​ ​approximately​ $​​ 2.1​ ​million​​ ​for​ ​FY18.​ ​For FY19​ ​we​ ​estimate​ ​the​ ​impact​ ​to​ ​be​ ​​$3.7​ ​million.
  • Strategies​ ​to​ ​Accommodate​ ​the​ ​Increase​ ​for​ ​FY18​ ​of​ ​$2.1​ ​million
    • Accommodate​ ​within​ ​the​ ​current​ ​FY18​ ​Salaries​ ​and​ ​Benefits​ ​Budget
    • Accommodate​ ​using​ ​other​ ​GF​ ​budget​ ​carryover​ ​(i.e.​ ​Utilities,​ ​Dept.​ ​Budgets,​ ​etc.)
    • Request​ ​to​ ​use​ ​Board​ ​Priority​ ​funds


Other thoughts- Messaging moving forward

  • Staying the course on reductions and proactive measures previously implemented
  • 3 year strategy is continuing- once legislative session is complete- we will have a better budget picture
  • We are avoiding lay-off’s at this time…but we are reducing the workforce- 108 reduced positions
  • Reductions that have the least impact on students

The next scheduled Board Budget Development Committee Meeting is January 22, 2018 at 3:00 p.m.




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