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The 2020 Budget & End-of-Year Reminders

The 2020 Budget & End-of-Year Reminders

Latest info on teacher pay raises and things you need to do prior to the school year's end.

The legislature is still working on the current budget for 2020. There are quite a few things that still must happen for the final budget to released. The House has passed a teacher pay raise, but the question is how much revenue will come with it? It is always important to remember that if this all flows through the formula, it will be more dependent on the number of WADM that you have in your school than on the number of teachers in district.  

As with last year's pay raise, it is important to remember that burdens will be a requirement for the salary increase. If it’s a $1,200 increase, it will be vital to calculate the benefits that go along with the pay raise. One area that we often forget is the retirement and tax match that goes along with any increase in pay, especially if we are looking at employees in the federal programs. Now would be a good time to look at the net effect on the budget if the pay raise does pass the legislature.  

At this time, we still see strong collections, and the total state collections will exceed budgeted amounts. One area of concern is the sales tax revenue that is slightly under collecting. We will know more about the net income tax receipts after the income tax filing period. The total amount at the end of the year will be interesting to examine for how much the actual growth this year has been. The continued unrest in the oil markets will set an interesting stage for next year’s collections. As always, we will monitor the collections.  

One item we would like to remind you of is the need for an accurate inventory of equipment and supplies. The end of the year is a good time to assess inventories for your school’s building, classrooms, athletic equipment and vehicles. This not only helps your board and staff to know what you have, but it is also good information to have in case of a natural disaster or building issue.This is not anyone’s favorite activity, but it is a necessary and important part of business. The inventories and check-out sheets are vital to end-of-year activities.

One other item that needs to be on your horizon is the proposed new W-2 forms. These will be much more detailed than in the past. We don’t know for sure when this will be released, but we will be in contact with the Department of Labor and may have a workshop in July to help payroll clerks work with teachers through this process. The tax bill passed at the end of 2018 is changing the need for withholdings, and this has a real effect on salaried personnel.

We will publish our state budget report as soon as we can after information is released so that schools can prepare for any changes. If you need assistance or have questions, please don’t hesitate to contact me.  Our next finance report will have a summary of current collections through April and will also look at the collected county 4-mill collections. We are also working on a FAQ on the School Land Commission payments to districts, as we have had several questions over the past three months about this fund. We will try to have this ready for the June report.  

Andy Evans

Director, Finance

Andy serves as the Finance Director for OPSRC. In this role, he provides help in financial and business-related areas for schools. This includes budgets, managing cash flow, Estimate of Needs, federal programs and general service to aid in the effective use of district resources. Additionally, Andy serves as a resource in customizing budget spreadsheets, projection sheets, and other financial tools essential to administrators in maintaining their district’s financial health.

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