Around Des Moines

A public hearing for the Fiscal Year 2009 budget of the Des Moines Public Schools will be held on Tuesday, April 8, 2008, at 1800 Grand Avenue at 6:00 p.m. A summary of the proposed budget was presented to the school board at the March 11th board meeting.

The proposed budget is $398 million. Of that amount, $329 million is in the General Fund.

Almost 44% of the budget’s revenue will come from state foundation aid. Each year the Iowa General Assembly sets an allowable growth rate for school funding. Also each year, on October 1st, districts report the number of students enrolled. The rate set by the legislature during its 2007 session is multiplied by the number of students enrolled in the DMPS on October 1, 2007, to calculate the FY2009 funding. The actual numbers are $5,614 (district cost per student) x 31,128.8* (enrollment) = $174,757,083. Although the state permitted a 4% growth, a decrease in DMPS enrollment means the DMPS has just under a 3.7% permitted growth. Much of the budget discussion takes place in context of this so-called new money.

Some of the increased funding the district will receive is required by law to be used for specific purposes. The district calculates that 18% of this new money must be used for programs such as special education, English language learning, and gifted/talented courses. For the unreserved dollars, the district identified priority areas for increased financing.

“Investment in Student Growth, Achievement, Engagement and Choice - Through the process of value-based budgeting, additional resources are assigned to priority areas. These priorities include: investing in full day kindergarten; 9th grade Academies at Lincoln and East High Schools; restoration of kindergarten [through] third grade teachers and principals; competitive compensation; International Baccalaureate, Walnut Street and Orchard Place programing; on-line classes and other classroom technology; middle school activities; policy governance; community relations; and custodial services at new locations.” (source: Executive Summary for the 2008-2009 budget)

Background details for several of these priority programs were provided at the school board meeting. The budget also includes one-time projects. These projects will be paid for with the fund balance, or cash reserves.

The fund balance “should only be used to finance one-time expenditures, not on-going expenditures. For that reason, these one-time funds will be used to invest in the one-time costs associated with the implementation of the district’s Enterprise Resource Planning (ERP) financial and student information (SIS) and the upgrade of the district’s television station - Channel 12.” (source: Executive Summary for the 2008-2009 budget)

The overall property tax rate is expected to drop from Fiscal Year 2008 but the portion supporting Drop-Out Prevention programs is expected to increase. The proposed 2009 property tax rate is $17.78099.which is a drop of 0.0087% from the 2008 rate.

The line item for Facilities Acquisition and Construction is $23,040,000. It is approximately 6% of the total budget and represents projects paid for with the local school option sales tax. An additional $5,190,000 is identified in the Capital Projects Fund Summary for Other Financing Uses, up from $2,400,000 in FY2008. Projected revenue from the Sales and Use Tax is $30,750,000.

The Food & Nutrition Summary shows projected expenditures of $15,212.210. Revenue is expected to come from the federal government ($9,865,180), the state ($180,000), and local sources ($5,014,915). Federal dollars account for 66% of projected revenue, which is close to the approximately 60% of district students identified as qualifying for free or reduced price lunch. Last month the school board voted to approve a diversity plan based on students receiving free or reduced price lunch.

(*Note: DMPS has been asked to explain an 8/10ths enrollment.)

M.R. Field covers the school board meetings for AroundDesMoines.com.