Letter to School District Administrators - 2004-2005 General Aid Certification

Date: October 14, 2004

To: School District Administrators

From: David Carlson, Director
School Financial Services Team

Re: 2004-2005 General Aid Certification
Aid Payment Schedule Information
2004-2005 Estimated Categorical Aid Prorations
Common School Fund (Library Aid) Information
Important Dates

2004-2005 General Aid Certification

The enclosed General Aid Worksheet calculates the October estimate of your district's 2004-2005 general aid eligibility. General aid is defined as equalization aid, special transfer (chapter 220, integration) and special adjustment aid. This information is also posted to the team's website under "Late Breaking Information" and under "Worksheets DPI Printed" on the left hand scan bar. The data used to generate this estimate was derived from the following sources.

1. 2003-2004 Membership Reports (2003 summer school FTE, September 2003 - 3rd Friday, January 2004 - 2nd Friday, 2003-2004 group and foster home adjustment, Youth Challenge Academy adjustment and students attending part time under Wisconsin Statute 118.145 (4)).
2. 2003-2004 PI 1506 AC (Aid Certification) Reports.
3. 2003 Equalized Property Valuations, School Aid TIF-OUT certification with exempt computer values. Districts received these values in May 2004.

Refer to the attached sheet for the October estimates of 2004-2005 cost ceilings and guarantees. Also enclosed is a membership worksheet used in the calculation of your district's equalization aid. Note the addition of an adjustment line for districts that had students in the Youth Challenge Academy.

Actual 2004-2005 aid eligibility using final audited 2003-2004 data will be computed after all desk audits of 2003-2004 Annual Reports are completed (Spring, 2005). Any resulting 2004-2005 aid eligibility adjustments will be made in the September aid payment of the 2005-2006 school fiscal year.

The following is an explanation of Sections H and I of the General Aid Certification Worksheet.

Section H - Equalization Aid

H1 Current Year Equalization Aid Eligibility From Calculation Of Sections A To G.
H2 Milwaukee Parental School Choice Deduction From Equalization Aid. (Milwaukee Only).
H3 Milwaukee Charter School Program Deduction From Equalization Aid As Per Wisconsin Statute 121.08(4) To Reflect The Funding Requirements Of This Program.
H4 Prior Year (2003-2004) October To Final Equalization Aid Eligibility Adjustment
H5 Prior Year Data Error Adjustment (Specific Districts).
H6 2004-2005 Equalization Aid Payment.

Section I - General Aid Certification

I1 2003-2004 Special Adjustment Aid Estimate And Special Transfer (Chapter 220, Integration Aid) Eligibility Estimate. Special Adjustment Aid Ensures That Districts Do Not Receive Less Than 85% Of Their Prior Year General Aid Eligibility.
I2A Milwaukee Parental Choice Deduction From Special Adjustment Aid/Special Transfer (Milwaukee Only).
I2B Milwaukee Charter School Program Deduction From Special Adjustment Aid/Special Transfer As Per Wisconsin State Statute 121.08(4) To Reflect The Funding Requirement Of This Program.
I2C Prior Year (2003-2004) October To Final Special Adjustment Aid/Special Transfer Aid Adjustment.
I3 2004-2005 Special Adjustment Aid/Special Transfer Aid Payment.
I4 Prior Year (2003-2004) October To Final Choice (Milwaukee Only)/Charter Deduction Adjustment.
I5 2004-2005 October 15 Certification of Aid. Line I5 Is To Be Used On Line 12 Of The 2004-2005 Revenue Limit Calculation.

The 2004-2005 equalization aid worksheet, as an executable spreadsheet file is available on the finance team website under "Worksheets (Executable)" on the left-hand scan bar or at dpi.wi.us/sfs/workexe.html.

2004-2005 Aid Payment Schedule

Beginning with the 1997-98 school fiscal year and again in the 2004-2005 school fiscal year, $75,000,000 from the general aid distribution will be withheld and paid on the fourth Monday of July following the close of the fiscal year. As a result, each actual 2004-2005 aid payment received by districts (September 20, 2004, December 6, 2004, March 28, 2005, and June 20, 2005) will be reduced by approximately 2.0 %. The aid withheld will be paid on July 25, 2005. Per statute, districts are to record this payment as actual revenue for the 2004-2005 fiscal year.

Note also that public school open enrollment payment adjustments, revenue limit penalties and Youth Challenge Academy payment adjustments will again be made on the June equalization aid payment.

To assist districts with their planning the School Financial Services Team will again be providing each district with a 2004-2005 equalization aid payment schedule. This information will be posted to the team's website by October 29 under "Late Breaking Information" and on the left-hand scan bar "Aid Payments Information" link.

2004-2005 Categorical Aid Proration Estimates The following list of 2004-2005 estimated aid prorations are based upon unaudited 2003-2004 report data.

Special Education (includes sped transportation)	29.6%
Social Worker/Psychologist	29.6%
Special Education - Room & Board	29.6%
Special Education - Hospital	100%
Pupil Transportation	91%
Bilingual/Bicultural	13%
Common School Fund (Early Estimate) (July Estimate)	$15.98

Common School Fund (Library) Aid

The actual amount of school library aid the district will receive will be posted to the team's website under "Late Breaking News" and under "Common School Fund" on the left hand scan bar no later than January 10, 2005. The payment date is Monday, April 25, 2005.

It is important to remember that districts must spend an amount in function 222 000 object 430 series equal to the amount of revenue they receive from the common school fund (recorded in source 613). If districts do not spend an amount equal to common school fund revenue, districts will be required to spend the difference in the next fiscal year. Additional information about the common school fund revenues and expenditures can be found at the website address listed above.

2004-2005 Important Dates

October 22 - Tentative mailing of 2004-2005 Revenue Limit Calculation Estimate
November 1 - Last day for school board to certify tax levy (ss. 120.12 (3)(a))
November 6 - Last day to notify municipalities of tax levy. (ss. 120.12 (3)(b))
November 15 - First special education aid payment
December 6 - Second equalization aid payment
December 20 - Second special education payment

For any additional questions, contact one of the following School Financial Services Team consultants.

Brad Adams	(608) 267-3752	bradley.adams@dpi.wi.gov
Karen Kucharz	(608) 267-9707	karen.kucharz@dpi.wi.gov
Jerry Landmark	(608) 266-3464	jerome.landmark@dpi.wi.gov

Enc: 2004-2005 General Aid Worksheet
District Membership Summary
2004-2005 Equalization Aid Guarantees (October estimates)
Inter-District Aid Summary (some districts)

For questions about this information, contact dpifin@dpi.wi.gov (608) 267-9114

Last updated on 2/25/2008 12:04:10 PM