School Finance Week 3 Assignment Part 4

The Maintenance and Operations Fund (MOF) source of revenue is based on several factors that include the ADA, WADA, and local tax revenue (2005-06 funding).   It is my understanding that the main factor in determining the MOF is ADA and student population.  Based on current funding formulas property values play a very small role in the value of MOF.  The WADA is important as well.  In figuring the WADA each student has a weight based on their “status”.  For example a student may be economically disadvantaged or a Career and Technical student and this “weight” can increase the per pupil amount.  Depending on the tax rate set by the board of trustees the district residents can vote to increase their taxes beyond the set limit of $1.04.  By conducting this rollback vote the district can gain some revenue.  This is difficult of course and requires a tremendous amount of effort on the part of the community to increase their taxes.

According to my district’s budget the MOF’s for this past year are $11.9 million.  A majority of these funds are appropriated for instruction purposes.  A large portion of the instructional costs are based on payroll, contracted services, supplies, and other miscellaneous expenses.  Upon observation our district spends a majority of the MOF on payroll expenses, about 75-80%.  Currently our district is operation in the black based on the expenditures versus revenue.  The estimated cost to operate the district through MOF for 2010-11 is $11.8 million and revenue is $11.9 million. 

We are currently making budgetary adjustments to account for about a 50 student drop in enrollment which will account for a severe shortfall.  The district was growing at a consistent rate and this year we were budgeting for an increase, but in turn had a decrease.  Adjustments to these figures will not be realized until the end of the year, but monthly updates are reviewed by administrative personnel and shared with campus and other district employees.

There is a relatively a strong relationship between MOF, allocations, and district expenditures.   Allocations seem to be within the norm, with very few areas of concern or overindulgence.  I am cautioned greatly about expenditures due to the shortfall based on a decrease in student population.

According to the Financial Integrity Rating System of Texas (FIRST) our district scored a Superior Rating with a total of 74 points, well above the 56 points required to pass.  Thus far our district has managed its funds well and efforts are being made to manage our shortfall this year based on a population increase as well as the dark cloud that hangs over the State of Texas’ financial woes.

Reflection:
I enjoyed reviewing my districts budget.  Now that I have been in this course for a few weeks, several of the items and codes I recognized and was able to make some sense out of the data.  I feel a lot more comfortable about the figures, but still have much to learn.