Board Agenda - August 01, 2006

X. Budget Report 2006-07

Presenter: Richard Matkin

Purpose: B - Update/status report

Time: No time limit

Description:

A budget report will be given concerning final appraised values and Chapter 41 payments for 2006-07. The final appraised values are received by the District the last week of July. Chapter 41 payment requirements have changed with recent legislation.

The Chapter 41 options will be presented to the Board at the Board Meeting. In previous years, the District has purchased attendance credits from other school districts. Due to legislation, the number of partners available and the benefit to partner districts has been greatly reduced.

An Option 4 Agreement nets the District an efficiency credit of $6.2 M; however, it also requires the District to find partner districts willing to sell 28,087 students. For the first time, legislation requires the partner district to return all profits for selling back to the State, unless funds flow through a Regional Service Center or JJAEP.

An Option 3 Agreement nets the District an efficiency credit of $2.2 M. This is a direct payment to the State. These contracts have to be to the State by September 1, or no efficiency credit is given to the District.

The District will present to the Board a recommendation for Chapter 41 payments at the August 15 Board Work Session. If Option 4 is selected, then the District has until December to approve a contract; however, if Option 3 is recommended, a contract with the State will need to be approved.

Recommendation:

Business Impact:

Summary:

Appendix:

Return to Meeting Agenda