Voter Approved Physical Plant and Equipment Levy

Voter Approved Physical Plant and Equipment Levy (PPEL)

What is a Voter Approved Physical Plant and Equipment Levy and why does the Alta School District need a voter approved 67 Cent Physical Plant and Equipment Levy (PPEL)?

Public schools in Iowa have a number of funding streams and each of these come with specific guidelines on how these funds might be utilized by the school.  Specifically, the Alta School District is in need of funds for building ground improvement/upkeep, athletic facility improvements/upkeep, elementary boiler replacement, tuck pointing repairs, technology/student computer updates and improvements, purchase of buses/vehicles for safe student transportation. 

            

These types of brick and mortar projects and equipment purchases are purchased using the Physical Plant and Equipment Levy and our Secure and Advanced Vision for Education (SAVE) Fund, which is better known as the "statewide penny sales tax." (Dollars generated through the PPEL levy or SAVE sales tax CAN NOT be used for employee salaries.)

            

Much of the funding generated by the existing board approved PPEL and the statewide SAVE tax have been applied to future payments for building remodel, building additions, as well as,  bus purchase, and maintaining only the facilities, technology and equipment we currently have.  

            

Our district is falling behind on putting updated technology in our teachers and students hands. Additionally, as the preschool has grown and overall student enrollment has remained steady, there is a shortage of available elementary classroom space in our current elementary building.

Why is this the right time to discuss a voter approved 67 Cent Physical Plant and Equipment Levy?

The PPEL is not being put to a vote at this current time, but this is the right time to begin the discussion and starting receiving public feedback on the idea of a voter approved 67 cent PPEL for sometime in the near future.

The need of increased revenue with our PPEL Fund has been present for a number of years.  This explains the continuing need to replace the original elementary boiler, delinquent tuck point of the elementary brick work, damaged sidewalk replacement, and replacement of outdated equipment.  SAVE fund dollars have been wisely used in the Alta School District in the past to pay for building renovations and additions, but those funds are now also stretched thin.

            

The portion of property tax that we pay for the school has dropped from $14.25 in fiscal year 2011 to $12.06 for fiscal year 2015, or a decrease of $2.19. This has been a direct result of gradually lowering the Cash Reserve Levy as the overall district financial position has improved over that same period of time in addition to some increases in property valuation.

           

The district Management Fund has now grown to a position of financial stability which will allow for a possible future decrease in that levy amount, further lowering the overall school property tax rate.

            

Using current taxable valuations the Alta School District would realize over $140,000 in additional revenue annually to utilize on building renovation/maintenance, transportation needs, safety improvements, and enhanced technology equipment.

How much would a 67 Cent voter approved PPEL cost me?

It is important to note the difference between "actual" valuation and "taxable" valuation as the actual tax paid is based on a rollback value.  This becomes the taxable valuation.

            

The expense of a 67cent PPEL for a homeowner with an actual valuation of $100,000 would be approximately $29 annually, or roughly $2.42 a month.

            

Agriculture property owners vary greatly with the number of acres they own and farm. For ease of calculation we will look at the taxable valuation on 100 acres of land using the average assessed valuation for Buena Vista County.  Here again, the assessed valuation and taxable valuation are two different amounts once rollbacks are applied.

            

A voter approved PPEL tax of 0.67 of taxable valuation on 100 acres of BV County ag land would result in a cost of roughly $0.63 per acre or $63 for the year.

How long would this voted PPEL be in place?

A voter approved PPEL tax can only be put in place for ten years.

What are the proposed improvements a successful vote might bring?

Boilers - the existing elementary boiler is original to the building (roughly 50 years old) and is beyond it's useful life. The only boiler for the old high school and gym is under the old high school making renovation for school and community use of the gym/shop area difficult and that particular boiler is about 40 years old.

Transportation - maintaining a modern fleet of vehicles is important for safe student transportation. This not only includes buses, but vans and suburbans. The Alta school board has made this a priority in future budgeting.

School Building Safety - Surveillance and site monitoring equipment for the elementary and high school wings of the building.

Technology - Increased access to mobile laptop labs at the high school and elementary level. Mobile labs of tablet computers (similar to iPads) for the elementary. Improved wireless network throughout the buildings to increase access speed and reliability.

Tuck Pointing - There are areas of the elementary cafeteria walls that wind driven rain can penetrate small cracks in the brick work.  This needs to be tuck pointed to prevent further water damage.

Handicap Accessibility -  If the school wants to continue to use the Roxy Theater, handicap accessibility is a must as it was identified by the Department of Education during the site visit 5 years ago.  If not addressed the school will be required to discontinue use of that building.

Additional information to consider.

Alta's sharing partner, Aurelia, has a voter approved 67 cent PPEL that was recently re-authorized by the Aurelia voters and has been in place a number of years.  This has been used wisely by the Aurelia Board of Education and the revenue received has allowed for improvements in Aurelia facilities to address:

• Handicap accessibility improvements (elevator and ramps),
• School safety improvements (surveillance camera system and monitors, improve fire safety, improved tornado alarm system, new building wide public address system)
• Gymnasium bleacher replacement,
• Construction of a ground floor cafeteria and kitchen,
• Provided for 7 mobile laptop labs for middle school student use,
• Mobile lab of iPads for use primarily for middle school students in 6th grade Science, *Annual roof replacement/repairs.
• New bus purchases
• Community/School Fitness Center
• Fitness Center equipment purchase and replacement.

Property Taxes Matter And Dillons Rule On School Spending

Local property taxes account for one-third of the total funds going into districts’ programs and represent about 40% of the overall state property tax funds levied. As discussed in prior articles, the state school funding formula largely determines school property tax rates and, therefore, the amount each district receives in state aid.

People often ask, "Why don't we just remove property taxes from the formula entirely?" There are several reasons why this isn’t a wise move.

§  It would take away roughly $1.31 billion dollars statewide, leaving lawmakers to decide whether to raise the state sales tax or income taxes to make up that difference.

§  Property taxes also add stability to the funding of school districts. For example, if we operated solely under the sales tax, the amount available for school funding would surely fluctuate depending on consumer spending.

§  Just as many people found out during the 1990s, too much reliance on a single funding source invites large swings in funding, which isn’t good for an entity unable to adjust to midyear revenue changes. Diversification is a prudent investing strategy that applies to schools as well.

Considering the aforementioned reasons and the present revenue and political climate, removing property taxes from the school finance formula seems unlikely.

No public official, whether our local school board members and administrators or the city and county officials, takes the impact of raising property taxes lightly. In most cases, public officials exhaust all other options before asking property taxpayers for more funds. However, when the General Assembly cuts short our state aid (as they have done twice in the last five years) and we experience additional, unforeseen expenses such as increased fuel and energy prices, we really have no alternative except to raise local property taxes or reduce expenditures. Seventy-five to 85 percent of school district budgets are comprised of salary and benefit costs, which doesn’t leave much discretionary spending to cut. No one likes property taxes, but they are an essential part of efficient funding of our schools. Fortunately, in both Alta and Aurelia, local school property taxes are projected to decrease for FY 2015.

Once all 351 districts establish their budgets based on the combination of state aid and local property taxes they receive, there are still many restrictions on where and how that funding can be spent. 

One of the most difficult and confusing elements of school funding is how Iowa law restricts the ways K-12 public schools can use various funding sources. Simply put, if we have a shortage in one area of the budget we cannot use other funds available to the district to offset such a shortage unless specifically allowed by law.

According to the Iowa School Foundation Formula, the largest funding source for schools comes from state and local property taxes. Revenues received under the formula are part of a school district's General Fund, which covers most of our expenditures for faculty and staff salaries. We also have dedicated funding streams for facilities, such as the Physical Plant and Equipment Levy, which can only be spent on buildings, grounds and certain equipment. People often refer to the General Fund side of the budget as the "breathing" part of the budget, while the other side is often referred to as the "bricks and mortar" side.

Depending on each district’s economic and demographic situation, some face pressures from the staff side of the budget while others have more pressures on facilities. However, due to the restrictions on revenue uses, excess money from the general fund cannot be used to solve shortages on the facilities side or vice versa.

Instruction expenditures (general fund) are equalized, but the funds we levy locally are not. The physical plant and equipment levy and debt service are valuation dependent and the revenue received varies considerably among districts. However the statewide school infrastructure sales and service tax (better known as the state penny sales tax), provides “equal” funding for school infrastructure needs and/or district property tax relief. The tax capacity of the district and the one penny revenue largely limits the amount of funds for building expenditures.

The state penny sales tax, which replaces the one-cent local option sales tax and is dedicated primarily to school buildings, equipment and property tax relief. It has proven to be a popular alternative to property taxes to renovate and build buildings. Now, with the passage of the state penny for school infrastructure, starting with FY 2014 each school district receives the same amount per pupil.

In short, when it comes to school spending, districts must look at all potential expenditures and determine not only if they have the money, but whether state law allows a particular fund to cover the expense. This standard, often referred to as “Dillon's Rule,” says school districts are only allowed to do what is specifically outlined by state law. This differs from cities and counties, which operate under “Home Rule,” which allows them to do anything not specifically prohibited by state law. Schools have less latitude than cities and counties in complying with the Code of Iowa, and in turn, how they spend their money.

Determining "Cost Per Pupil"

The General Assembly “equalizes” funding statewide so the “cost per student” is roughly the same in every district and every student has access to quality education.

Taxpayers often ask, and rightfully so, how Iowa spends the nearly $4 billion earmarked for the state’s public education system. Last mont, the the school newsletter ran the first in a series of articles dedicated to helping taxpayers understand how those dollars are being spent to educate nearly 474,000 students throughout the state. This month we’ll discuss how those dollars are divided.

When it comes to school funding, the state legislature tries to ensure all children receive a quality education based on roughly the same amount of per pupil funding throughout the state. That’s where the school finance formula comes in. This formula relies on a combination of state aid and property taxes to fund education. The amount of state aid each district receives depends on how much it brings in through local property taxes. If the state relied solely on property taxes to fund schools, some districts would be able to raise a lot of money with a very small property tax rate, while others would raise a smaller amount of money on a much larger property tax rate.

This was almost exactly the situation Iowa found itself in over 35 years ago. Before the early 70s districts relied primarily on property taxes for school funding.  However due to the wide range of property tax rates funding districts and concern over the disparity in funding per child, lawmakers instituted a formula to address both of these issues, setting a maximum and “equal” cost per student. All districts are required to levy a uniform levy of $5.40 and then the state funds an additional amountup to a certain level (called the foundation level). Beyond that foundation level, local property taxes are levied to fund the remainder of the difference.

The Iowa Association of School Board’s education finance co-director, Patti Schroeder, explains that school funding is basically made up of three layers. “The first layer is local property taxes determined by the Uniform Levy,” Schroeder says. “The middle layer is state aid and the top layer is additional local property taxes. The mix of all three of these is set by a formula over which the local district has little control.

Local property valuation per pupil is above the average: "property valuation per pupil that is above the state average. This means our Uniform Levy of $5.40 generates more dollars and we get less state aid as a result. However, our Additional Property Tax Levy rate is lower than the average, so our additional levy rate can be lower and generate the same dollars as other districts because of our higher property valuation."

While the state partially equalizes tax rates through the school finance formula, significant deviations still affect how much each district receives from the state. The lowest combined tax rate for a school district is $8.34 for the current fiscal year and the highest is $23.30, making that a difference of$14.96 per thousand.

Regardless of the financial situation of the local school district, a large portion of the district's tax rate is set by formula and there is little the local school board members or administrators can do about it. However, Iowa law does make allowances for growth and  inflation from year-to-year. 

We’ll discuss the concept of “allowable growth” in the third article in our series explaining school finance.

How Enrollment Impacts Revenue

Every year public schools in Iowa spend billions of dollars to educate children, sparking taxpayers to often ask school board members, administrators and lawmakers: “Where does that money go?” That’s why part of the AltaCommunity School District and Aurelia Community School District’s mission is to help taxpayers understand how districts are spending that money, in an attempt to dispel the mysteries surrounding school funding.

Here is an overall idea of the total funding public K-12 schools in Iowa receive to educate approximately 473,500 Iowa children. The total state appropriations for school aid under the school finance formula in FY 2012 amounts to $2.63 billion. About $1.31 billion per the finance formula comes from local property taxes earmarked to fund school programs, with approximately $475million funding facilities and other district expenses. Where it goes from there is a bit more complicated, but just as important to understand.

“Knowing how the state school funding formula works is important in helping understand the pressures facing local school districts,” said Patti Schroeder, education finance co-director for the Iowa Association of School Boards.

While the area of school finance is complex, some basic principles make it understandable to the average citizen, including:

1. The number of children enrolled in each district determines a district’s budget/revenues.
2. The General Assembly through the finance formula “equalizes” funding statewide so the “cost per student” is roughly the same in every district and every student has access to a quality education.
3. The Governor recommends the annual change in per pupil allowable growth.  The General Assembly is responsible for passing legislation to establish the annual increase in the “cost per student/allowable growth”.
4. Property taxes matter. They determine how much money each district receives in state aid.
5. Funds are restricted. We can only use funds on what the legislature tells us we can.
6. Schools are budget limited. Most other public entities are property tax rate limited. This difference is monumental.

Iowa’s school funding formula is a child-based formula, meaning that the allowable spending for a school district is based upon the number of children enrolled in that district on October 1 of each year. The number of students counted on that day is used to establish the district’s budget for the following year. This means our revenues are always a year behind the actual number of children we are serving in our classrooms. For the Alta Community School District, our October 1 enrollment is 510 for the current year. . For the Aurelia Community School District, our October 1 enrollment is 242.4 for the current year

“Because the formula is based on the number of children enrolled in the district,” Schroeder explained, “as we gain children, we gain revenues to serve those children and, if enrollment declines, we also lose revenue.”

Because the enrollment for our districts have been relatively stable over the past three years, we’ve been fortunate that our budgets have been stable as well. However, if enrollment declines in the future, along with increasing costs, we will be faced with the prospect of reduced resources to serve the needs of our district. This could result in personnel reductions and have an impact on programs.

Once district revenues are established, how is that money spent? It depends on state lawmakers –and this will be discussed in future articles. 

Being the Parent of a Student Athlete

From my over 30 years in education, half of it spent as a teacher/coach, I have come to understand an unspoken language with coaches when they uttered one word: "Parents."

It speaks volumes. I know what the coach was thinking. We share an identical image from my years on the high school coaching scene: wackos in the stands screaming at officials or stalking outside locker-room doors ready to confront the coach.

Then I became one. A parent that is.

You know, the guy in the stands with a child in uniform. It didn't happen overnight, of course. There were countless youth games played, thousands of miles driven and untold drive-thrus visited from the time my children were 5 years old through my son's senior year. T-Ball, baseball, softball, volleyball, football, track, golf, wrestling, cheerleading, at some point in their growing up years, they did it all.

They learned a lot, and of course, so did I.

Here are the 10 biggest lessons I learned from being the parent of a student-athlete

No. 1. Have no expectations, for your child or the coach. If you go into the season thinking "This kid is going to be a star," you have just set your child, the coaches and yourself up for failure.

Trophies won from ages 5 to 15 don't mean a thing. What he or she did in middle school or on the freshman and junior varsity teams is almost as unimportant. So many kids who are young all-stars will fade away. Even among the seemingly "sure bets", some will lose interest, quit, peak early, become ineligible, the list goes on.

Conversely, for the little ones, puberty is like a magic bean. It takes them to unexpected places. I'm 6' 1'.  My wife is 5'9".  My son grew to be 6'3" and my daughter is 5 foot nothing.  Both found their niche. They found what they liked, what they excelled at, and they worked hard at those activities. Interestingly, neither picked what I probably would have predicted for them when they were first starting out.  

It was astonishing to watch the transformation, and you will be amazed at the kids who weren't stars at early ages who stick with it and become valuable varsity performers.

No. 2. Give your child some space. Let her enjoy her successful moments and figure out how to deal with defeat, failure and disappointment. Don't get too wrapped up in the wins and losses. Your job is to make sure your child does not get too high after a win or too low after a loss.

No. 3. Try to have an objective view of your child's ability and build on his or her strengths. Don't tear him down by telling him what he did wrong unless the child comes looking for constructive criticism. Most of the time, the kid knows it better than you.

No. 4. Let your child make decisions that matter, with one caveat. When he or she considers quitting -- and most athletes have that moment -- make the child understand quitting is not the first option, especially once the season has begun. Dealing with adversity and persevering are important lessons.

No. 5. Grades really are the most important thing. The chances that he or she will get a college sports scholarship are almost nil, and even if the stars align and that happens, the kid still has to have good grades.

No. 6. Don't ignore injuries or signs of extreme mental and physical fatigue. If he or she is hurting, find out what it is. Playing injured can hurt the team and your child's long-term health.

No. 7. Let your child fight his or her own battles with the coach, especially with regard to the No. 1 complaint: playing time.

Your child has to learn how to deal with adults. It's part of growing up. He or she will have to confront professors and bosses, and this is a good place to learn.

If it's another issue and you find it necessary to get involved, always wait a day to talk to the coach. Let your emotions subside and think clearly about the point you want to make. If you suspect there is hazing or abuse taking place, report it to the athletic director or principal immediately.

No. 8. Support the team and be a good fan. Volunteer, and don't wait to be asked. Attend booster club meetings. Get to know the other parents. Make your own positive experience in the stands, no matter what is going on below.

When you're at the game or event, cheer for everyone on your kid's team, not just your own. Don't be the jerk in the stands, the one yelling at the coach, your team, the other team, and mostly the officials. You are embarrassing your school, your child and yourself. If you don't have anything good to say, sit down and shut up. If you're not enjoying yourself, stay home. You won't be missed.

No. 9. Understand these are competitive sports. Once they are in high school, it's no longer Little League where every kid gets to play.

There's going to be disappointment, heartache, unfairness and injuries. Unless it ends in a state championship, it will end in defeat. Your child is going to make mistakes. The coach will yell at him or her. That's what they do. Let it happen. He or she is not a baby anymore.

No. 10. Enjoy the ride. It will go by fast. Hug your child when it's over.

Safe Driving Near School Buses and a Few Reminders for Riders

As the new school year begins, drivers should remain vigilant as students and school buses return to the roadways. That means: Put the cell phone away, set your cup of coffee down, don't look in your rear-view mirror to fix your hair. Concentrate on who and what is around you. Our ultimate goal is to make sure everyone safely arrives at their destination. Motorists should avoid distractions and obey school bus and school zone traffic laws so we have the safest possible environment for students boarding and exiting buses.

The bill known as "Kadyn's Law," in memory of Kadyn Halverson, went into effect with the governor's signature March 16, 2012. The 7-year-old first grader from Kensett was killed by a driver who had illegally passed a stopped school bus.  This  provision increases the penalties for drivers who fail to abide by the law (Iowa Code 321.372) on stopped school buses. Previously, a motorist who passed a bus when the red warning lights were flashing was fined $200. The new Iowa law increased the penalty to at least $250 and as high as $675 for a first offense and up to 30 days in jail. For subsequent violations, a driver could face fines of up to $1,875. A driver who violates the law and causes an injury could face added fines, jail time and license suspension. 

In addition to the situations described below, drivers should never pass on the right. Violations of Iowa's motor vehicle laws should be reported to local law enforcement. 

Scenario 1 – You are traveling on a two-lane or three-lane

• Nearing the bus from the rear; drivers must always stop when either the amber lights or red lights are flashing. Stop no closer than 15 feet from the bus. 

• Meeting the bus from the front; drivers must slow their vehicles to 20 mph when amber lights are flashing. Stop when the lights change to red and the stop arm comes out. Remain stopped until the lights stop flashing and the stop arm is withdrawn.

Scenario 2 – You are traveling on a road with two or more lanes in each direction

• Stop if nearing the bus from the rear when amber or red lights are flashing. Stop no closer than 15 feet from the bus.

• When meeting the bus in one of the opposite two lanes (or more), you do not need to stop even if the bus has stopped with lights flashing and stop arm out. The bus is not permitted to load or unload children who must cross this type of roadway unless there are official traffic control devices or police officers present.

A Few Safety Reminders for School Bus Riders (Parents, please remind your students to follow these rules.)

1. Be alert to traffic. Check both ways for cars before stepping off the bus.
2. Make eye contact with the bus driver. Wait for the bus driver’s signal before you cross the street.
3. Walk in front of the bus; never walk behind the bus to cross the street.
4. While waiting for the bus, stay in a safe place away from the street.
5. Never go under the bus to retrieve something you’ve dropped.
6. Be aware of backpacks or loose clothing that could get snagged on bus doors or hardware.

Iowa Education Reform Legislation

·                          Implements the largest teacher leadership structure in the United States.

This structure provides top teachers a chance to take on more instructional leadership responsibility alongside school administrators, which will strengthen teaching throughout schools. It also provides more support for new teachers and fosters greater collaboration for all teachers.

The leadership structure is a multi-year commitment, with the first year focused on planning. About $3.5 million in planning grants has been set aside for school districts that join the system. Beyond that, districts will receive more than $300 per student a year.

·                          Pays teachers more.

Between raising the minimum salary to $33,500 and providing extra pay to teachers who accept leadership roles, opportunities now exist to help retain talented people.

·                          Expands Iowa Learning Online, a state-run system that has provided high-quality courses online and through the Iowa Communications Network (ICN) since 2004.

The expansion provides additional learning opportunities for students whose districts don’t offer certain subjects.

·                          Creates pilot programs in competency-based education, an approach that advances students based on their mastery of content rather than age or seat time.

“When a student demonstrates competency in a certain subject, he or she can move along – as opposed to having to sit a number of days in a class that’s already been mastered,” says Mike Cormack, policy liaison for the Iowa Department of Educations. “If a student has mastered Algebra I, for instance, she won’t have to wait for her classmates to catch up before she can start Algebra II.”

·                          Changes the minimum instructional time required in a school year by giving school districts a choice between 1,080 hours or 180 days.

Previously, the school year was measured by a minimum of 180 days. The new flexibility allows schools to make up snow days by gradually adding time to the school day, rather than tacking on extra days at the end of the school year.

·                          Creates college loan programs for teaching candidates.

This program will be available to high-achieving students who want to teach in high-need areas.

·                          Creates a simplified approach to connecting teachers with job openings in schools by establishing a statewide web-based education job posting system that will make the processes for hiring and applying for jobs more efficient.

·                          Increases school funding.

School funding will increase 2 percent next year, with an additional 2 percent, one time, state aid. School funding increases 4 percent in the second year.