Informational Presentation on School Funding, including Ad Valorem Taxes and Millages October 15th, 2019 Overview of Funding For Public Education Overview of Local Education Funding a This Yea r?s Process and Assessments Overview of Funding for Public Education Public Education Is Funded by 4 Major Revenue Sources State Funding Sources Local Funding Sources Other Funding Sources Property Sales and Tax 5:31: anld Use Tax (Ad era Grants Valorem) lA PUBLIC SCHOOLS The MFP Is a Complex 4-Tiered Formula That Equitahly Allocates $3.7 Billion Across 177 School Districts and Schools Level 1 starts with a base per pupil amount of $4,015 Adds ?weights? For certain students Includes a ?wealth measurement? to determine the proportion of total MFP educational cost that will be shared between the state and local school districts and schools Allocates $2.4 billion (67% of the total MFP calculation Level 2 provides an incentive to school systems taxing themselves above the minimum level of Financial support required. When taxable assessed value increases, a district is viewed as more able to support education locally and the MFP Formula increases the responsibility For costs over to the district, resulting in a smaller state allocation lA PUBLIC SCHOOLS The MFP Is a Complex 4-Tiered Formula That Equitahly Allocates $3.7 Billion Across 177 School Districts and Schools Level 3 includes allocations added to the Formula over the years due to requests From the Legislature to Fund speciFic items (pay raises, health insurance, retirement, Fuel, etc.) on a per pupil basis Level 4 provides Funding For speciFic programs and schools, such as Foreign Language Associates, Career Development Funds, Supplemental Course Allocation, and High Cost Services and For state schools such as NOCCA and OFFice oF Juvenile Justice schools lA PUBLIC SCHOOLS Ad Valorem Roles Total value of property is set by the Assessor Property is required to be reassessed at least once every 4 years 2020 is a quadrennial reassessment year I Taxing authorities set millage rates City of New Orleans sends the bills, collects the payment From taxpayers, and remits amounts collected to the taxing authorities lA PUBLIC SCHOOLS Overview of Local Education Funding Orleans Parish Taxing Authority City of New Orleans School Board Sheriff Board of Liquidation Sewerage and Water Board Audubon Park Zoo Aquarium Levee Board West Levee Board East Special Taxing Districts Mills 48.65 45.31 2.80 22.50 16.23 0.32 2.99 12.28 12.56 31.26 All of Orleans Parish School Millages Began More Than 20 Years Ago Constitutional 27. 65 1921 Books, materials, supplies 1.55 10 years 2028 1989 Discipline and dropout programs 1.55 10 years 2028 1989 Employee salaries and benefits 7.27 10 years 2028 1989 Air conditioning, asbestos removal, 2.32 20 years 2028 1989 Facilities Capital repairs (School Facilities 4.97 30 years 2024 and 2021 1995 Preservation Program) and General Obligation Bond . PUBLIC School Millage Rates in Surrounding Parishes and Other Urban Parishes Surrounding Parishes Urban Parishes St. Tammany 64.41 Caddo 73.82 St. Charles 55.76 Orleans 45.31 St. Bernard 46.72 East Baton Rouge 43.45 Orleans 4531 Jefferson 22,91 Plaquemines 27.02 Jefferson 22.91 PUBLIC SCHOOLS This Year?s Process and Completed Assessments Ad Valorem Tax Calendar October Assessor provides completed assessments May - November Taxing authorities adopt millage rates 3:00pm: OPSB Public Hearing 5:30pm: OPSB Board Meeting to consider roll Forward December - January City mails invoices to taxpayers November 19 January 31 Tax payments are due to the City by the taxpayer City remits taxes received to the taxing authorities Ad Valorem Assessment Information Taxable value total value less $75,000 homestead exemption 2019 taxable value $3,877,724,080 2020 taxable value (as oF10/02/19) $4,487,546,230 lA PUBLIC SCHOOLS State Education Funding (MFP) to Orleans Parish will Decrease Due to ncreased Assessments The Louisiana Department oF Education has estimated that state Funding to New Maintain Orleans Public Schools will decrease by Revenue Forward Current AV $91 million All Mills Rates . . . . Ad 203.3 175.7 This IS due to the Increase In taxable V3 Crem assessed value From 2019 to 2020 This decrease will happen regardless oF whether millage rates are rolled Forward or Total 194.2 166.6 not lA PUBLIC SCHOOLS Rolling Forward All Mills Would Increase Public School Spending by Roll Forward All Revenue Mills Compared to in 2019-20, Ad valorem $2033 this would represent in additional revenue For schools MFP m2 per pupil) Total 194.2 lA PUBLIC SCHOOLS 2017-2018 Per Pu il Funding in Surrounding Parishes and ther Urban Parishes Revenue State Local Taxes Add? Forward Revenue Revenue School District MFP Ad Valorem Sales Total Pupils Per Pupil (~$400pp) St. Charles $29,810,121 $68,993,341 $45,512,459 $144,315,921 9,354 $15,428 2" Plaquemines $10,705,227 $25,233,389 $16,509,356 $52,447,972 4,478 $11,712 LE St. Tammany $215,773,198 $123,367,154 $93,372,055 $432,512,407 38,059 $11,364 (?616 Orleans $194,770,852 $158,311,016 $127,844,470 $480,926,338 46,603 $10,320 $10,720 U): Jefferson $224,888,663 $79,473,755 $187,948,865 $492,311,283 49,594 $9,927 St. Bernard $42,511,970 $13,036,758 $13,517,194 $69,065,922 7,152 $9,657 East Baton Rouge $183,800,008 $150,904,696 $174,082,945 $508,787,649 46,158 $11,023 is Caddo $216,678,177 $129,523,423 $73,777,428 $419,979,028 39,857 $10,537 5 [its Orleans $194,770,852 $158,311,016 $127,844,470 $480,926,338 46,603 $10,320 $10,720 Jefferson $224,888,663 $79,473,755 $187,948,865 $492,311,283 49,594 $9,927 Overall, Orleans Parish is ranked #30 out of 69 School Districts in Per Pupil Funding PUBLIC SCHOOLS Nl Roll Forward is Ke to RemaininiCompetitive With efferson Paris With NOLA-PS Roll Forward and Revenue Addtl Increased Per A ff I School District Pupils Per Pupil Revenue Pupil pprove erson ncrease St. Charles 9,354 $15,428 . g? Plaquemines 4,478 $11,712 Per #3 St. Tammany 38,059 $11,364 Orleans Parish $10,720 Orleans 46,603 $10,320 $400 $10,720 Jefferson Parish $10,507 Jefferson 49,594 $9,927 $580 $10,507 St. Bernard 7,152 $9,657 Maintain Current NOLA-PS Levels East Baton Rouge 46,158 $11,023 . 3 .5 Caddo 39,857 $10,537 . 5 Orleans 46,603 $10,320 $400 $10,720 Jeffemn Par'Sh $10,507 Jefferson 49,594 $9,927 $580 $10,507 Orleans Parish $10,320 PUBLIC .SCHOOLS The Roll Forward Will Have Real Impact on Our Schools MMJA (mun; luardo Neva Ill! 'l?l VH1: PUBLIC .SCHOOLS