Our Schools

Elementary

• Adams
• Harrison
• Jackson
• Jefferson
• Kennedy
• Lincoln
• Madison
• Monroe
• Roosevelt
• Van Buren
• Washington
• Wilson

• Edison
• Franklin
• Marshall

• Craig
• Parker

• Arise Virtual Academy
• Rock River Charter
• Rock University High School
• TAGOS Leadership Academy

NTRODUCTION

The Business Services Group is pleased to present the 2023-24 School District of Janesville (“SDJ”) budget.
A balanced budget is being presented to the Board of Education for approval on October 24, 2023. As a
result of the COVID-19 pandemic, the District is receiving federal grants to support its response. The
District is using funds to offer a robust online instruction platform, reduce class size at the elementary
level, maintain secondary instructional pathways, invest in sanitation efforts, install bottle filling stations,
provide personal protective equipment such as face masks, and improve indoor air quality. In aggregate,
the District will receive over $27 million in federal funding through three different Elementary and
Secondary School Emergency Relief (“ESSER”) and Governor’s Emergency Education Relief (“GEER”)
Funds. The funds are provided on a cost-reimbursement basis, meaning the District must incur costs and
then be reimbursed. Some of these funds are received by the District and are required to be allocated to
private schools. Some of these federal funds were used during the 2020-21 through 2022-23 fiscal years,
and most of the remainder will be used during the 2023-24 fiscal year. A portion may carryover to fiscal
year 2024-25. Of the remaining funds, a portion will be used for indoor air quality at Franklin Middle
School and social distancing in greenhouses at Craig and Parker High Schools.

DISTRICT OVERVIEW

The School District of Janesville serves over 9,300 pre-kindergarten through 12th grade students in 20
schools. As one the largest school districts in the State of Wisconsin, our instructional programs are
provided in two comprehensive high schools (9-12), three middle schools (6-8), twelve elementary schools
(K-5), and twelve P4J Community Partnership sites (4-year-old early learners). In addition, we serve
students in three charter schools: Rock University High School, Rock River Charter School, and Arise Virtual
Academy. The District is committed to preparing our students to enter the world beyond the classroom
as life-long learners with strong academic skills and a sense of self. The District is ensuring that every
graduate is college and/or career ready.

In November 2020, the District received support from electors in the form of two referenda. The first
provides $22.5 million for safety, security, and facility improvements. The second provides four years of
support in addition to our revenue limit to meet operational needs of the District. The operating
referendum provides an additional $11.5 million for 2023-24 to support:

• ongoing investment in curricular resources such as language arts
• maintain instructional technology for students and staff
• preserve reasonable class sizes
• attract and retain qualified educators and support staff

BUDGET DOCUMENT

The 2024-25 budget is being presented by fund. Prior-year data presented are actual values and not
budgeted amounts. The 2023-24 actual data have been subject to audit, but as of the release of the
budget, are not yet available in report form.

The data presented are not a collection of program-oriented budgets displaying what each program costs,
but rather, a cost accounting budget presented by functional areas describing the purpose for which
expenditures are made. This is consistent with the Wisconsin Uniform Financial Accounting Requirements
(“WUFAR”) structure and the budget presentation format required by §65.90, Wis. Stats. Narrative
explanations detailing the WUFAR system are provided throughout the document to provide additional
context.

The budget is based upon information known and decisions made through October 18, 2024. The October
15 certification of general/equalization aid and related adjustments to the revenue limit computation are
incorporated in to the budget presented here. However, additional modifications to the budget may
occur prior to the budget hearing and levy certification meeting.

So as to meet the needs of students, careful administration of the budget plan is essential to achieving
short-term and long-term strategic direction and the financial health of the District.

On behalf of the entire Business Services Group, we look forward to an exciting and successful school year
in 2024-25.

Dan McCrea, SFO
Chief Financial Officer

Matthew Sylvester-Knudtson, CPA
Director of Finance

Tami Carlson
Financial Analyst / Grants Mgr.

October 18, 2024

Wisconsin school finance practices and generally-accepted accounting principles require that the District segregate financial transactions into distinct accounting entities, called funds. Funds are used to report on-going annual costs of operating the district, to account for capital projects financed through borrowing, or to place
certain revenues and expenses in a trust. SDJ utilizes the following funds for budgetary purposes:

• General Fund $146,787,035 
• Special Education Fund $25,433,544
• Debt Service Funds $8,748,094
• Capital Funds $7,185,323
• Food Service Fund $6,400,000
• Community Svc. Fund $200,000 
• All-Fund Expenditures $194,753,996

Debt service funds include all transactions related to the payment of general obligation debt and refinancing of debt.

Capital funds are created whenever acquired resources are restricted for the acquisition or construction of specific capital projects or purchase of capital items.

The community service fund allows for the segregation of financial transactions related to community use of facilities and programs operated for the benefit of the entire community. 

All revenues, expenditures, and changes in fund balance for each fund are accounted for separately and reported to DPI. 

The District also operates and manages the following funds, which are not included in total budgeted District expenditures: 

Employee Benefit Trust Fund (Fund 73) – The OPEB Trust Fund accounts for resources held in trust for post-employment benefit plans legally established as an irrevocable trust.

Special Revenue Trust Fund (Fund 21) – Accounts for gifts and donations to the District.

The budget development process generally begins the December prior to start of the fiscal year and is when budget assumptions are developed based on the State of Wisconsin’s biennial budget and local determinations.

2024-25 BUDGET DEVELOPMENT ASSUMPTIONS – APRIL 2024 (ACTUAL in blue)

Budget development assumptions create parameters, at a high level, that guide both administration and the Board of Education during the budget modeling and development process. Additionally, budget assumptions consider the district’s mission driven long-term fiscal health. The following sections provide an overview of the budget development assumptions:

FINANCIAL MANAGEMENT

• District Administration will present, and the Board of Education will adopt, a balanced budget that meets the needs of the District’s students.
• The District’s fund balance will not be utilized for recurring expenses.
• The district will model the effect of pre-paying (defeasing) its long-term Fund 38 and 39 debt obligations. District Administration will propose defeasing Fund 38 in 2024 and 2025, thereby eliminating Fund 38 WRS Debt.
• The District will secure a line of credit for the 2024-25 fiscal year, related to the historically low November cash point, prior to the December state aid payment.
• The Board will utilize its full authority to levy within the allowable revenue limit.
• Final ESSER III expenses need to be incurred by September 30, 2024.
• Property values are assumed to increase by 3%. Decrease of approximately 2%.

REVENUE

Per Student Categorical Aid (outside the district’s revenue limit authority)

• The 2024-25 per pupil categorical aid increase $0.00 per FTE. Unchanged.

State Equalization Aid

• The 2024-25 Statewide General Equalization Aid will increase $225,000,000 over the prior year. Increases in state aid off set the local levy, all else equal. The actual increase for the District is $3,801,723.

Categorical Aid

• Targeted reimbursement for special education funding will remain unchanged from the current legislated amount of approximately 33%. Actual aid received in 2023-24 was 32.4% of prior year expenses.

Revenue Limit Authority

• The allowable revenue limit will increase $325 per FTE. A base FTE, using the September FTE count will be used. Preceding September FTE counts have been:
  • a. 2015 – 9,898
  • b. 2016 – 9,780
  • c. 2017 – 9,668
  • d. 2018 – 9,528
  • e. 2019 – 9,370
  • f. 2020 – 9,070
  • g. 2021 – 9,051
  • h. 2022 – 9,108
  • i. 2023 – 9,118
• For budget planning purposes the District’s summer school student FTE will remain at 76. Actual 76.
• Independent Charter School (ICS) membership count is estimated to increase from 25 to 32. Actual 25.5.
• The District will be in year four, $14,500,000, of a four-year non-recurring operational referendum to exceed revenue limit authority.

Open Enrollment / Tuition Programs (outside the district’s revenue limit authority)

• For budget planning purposes, the District’s September open enrollment-in will remain status quo at 576, net of the 14 JIEP students, and open enrollment-out will remain at 588. Actual open enrollment in as of 3rd Friday is 587 and open enrollment out is 610.

Fund 10 & 27 Grant Revenue, State and Federal Sources

• Federal and State grant award revenue will be budgeted at prior year levels.

EXPENSES

• The District will utilize a cast forward model consisting of the budgeted 2023-24 expenses, less administrative recommendations.
• The District will forecast a 4.12% increase in base wages, subject to allowable July 1, 2024. CPI-U percentage. The base wage increase amounts to a 3% increase for certified staff totaling $1,572,008.
• The District will budget for a TBD increase in health insurance and model various plan design options designed to recruit and retain talent. Actual approximately 11%.
• The District will budget for a 5% increase in dental insurance.
• The District will budget a 5% increase transportation expenses
• The District will budget a 5% increase in utility expenses.

STAFFING

• Staffing plan assumptions are developed within the guidelines established by Board Policy 4221. In support of district goals, administration may recommend alternative staffing ratios at targeted grade levels.

The following chart and table illustrate the District’s General Fund (10) revenues, by source, beginning with the 2022-23 fiscal year to current. Budgeted revenues include approximately $4 million less ESSER and similar funding compared to the prior year, and approximately $2 million more of revenue compared to the prior year due to a new lease in 2024-25. Without the two aforementioned sources, revenues would have increased approximately 2.8%. In the context of all Fund 10 revenues, approximately 58% is derived from state sources and 30% from local sources.

SPECIAL EDUCATION FUND (27) – REVENUES

The following chart and table illustrate the District’s Special Education Fund (27) revenues, by source, beginning with the 2021-22 fiscal year to the current fiscal year. The projected increase in revenue is due, in part, to some staff costs in being expensed to the IDEA Flow Through grants in 2023-24 and a higher transfer from Fund 10.

SPECIAL EDUCATION FUND (27) – EXPENSES

The following chart and table illustrate the District’s Special Education Fund (27) expenses beginning with the 2021-22 fiscal year to the current fiscal year. As noted in the March 2023 staffing report, 4.5 FTE additional instructional special education staff were added.

GENERAL OPERATING FUNDS (10 AND 27)

Over half of the financial support for special education services is provided via a transfer from the General Fund (10). Because of this reliance, and because special education is a component of the broad instructional services the District provides, these funds are occasionally blended. When done so, the net totals may be considered the District’s operating budget. The values illustrated are net of the inter-fund transfer.

Fund 38 – Non-Referendum Approved Debt

Fund 38 debt, within the District’s revenue limit authority, accounts for debt related to the merger of the two Wisconsin retirement systems and the District’s use of the Act 32 Energy Exemption for work related to facility improvements, predominately at Edison Middle School, replacing outdated boilers and other mechanical, electrical, and plumbing systems. Act 32 is no longer available for Wisconsin school districts. In 2019, the District refinanced debt related to the merged retirement systems saving $1,566,860 or $150,000 a year on an annual basis.

Debt service is levied on the calendar year basis, but budgeted for on the fiscal year basis. For 2023-24, a transfer of $2.5 million from Fund 10 is included in the budget. These funds will be used to defease retirement-system related debt. At the end of the 2023-24, the following debt balances will be outstanding. The anticipated 2023- 24 defeasance has not been factored into these balances.

• Act 32 $4,715,000
• Retirement-system $6,270,000

Fund 39 – Referendum Approved Debt

The District’s Fund 39 debt relates to the 2006 approved referendum for the purpose of building renovations at Craig and Parker High Schools, and various elementary schools, and the 2020 capital referendum. The 2023-24 budget does not include an allowance for defeasing Fund 39 debt. 

At the end of the 2023-24, the following debt balances will be outstanding.

• 2016 Issuance $4,745,000
• 2020 Issuance $2,585,000

Fund 46 – Long-Term Capital Improvement

In 2015, the Board of Education acted to establish a long-term capital improvement fund, which could not be utilized until five years after its inception. Investing in this fund is accomplished by transferring funds from Fund 10 to 46 during a given fiscal year or no later than July 30 following fiscal-year-end. Budgeted expenses for 2023-24 relate to capital projects at Edison and Franklin Middle Schools and Craig and Parker High Schools.

Fund 49 – Capital Projects

Upon issuance of the 2020 referendum‐approved debt, a capital projects fund was established to account for the costs associated with those projects.

The District self-operates its school food service program, absent from the local levy, serving breakfast and lunch in participation with the United States Department of Agriculture, National School Lunch Program.

Included in the Fund 50 budget is an approximately 5.7% market adjustment to wages ($67,000 including FICA and WRS) for specific student nutrition staff groups. 

The District established Fund 73 as a mechanism to account for post-employment benefit obligations such as health insurance. The District, generally, makes both annual contributions to and withdrawals from the fund. The District’s expenses related to post-employment benefits are decreasing over time, related to the reduction of such benefits. As a fiduciary fund, a budget is not required to be established for Fund 73.

Fund 21 accounts for gifts and donations to the District. 
As donations and expenditures are not always known, a budget is not established for Fund 21.

COMMUNITY SERVICE FUND (80)

In 2019, the Board of Education embraced the opportunity to support early literacy utilizing a
Fund 80 levy as a financial vehicle. For 2023-24, the levy includes $25,000 in support of Bags of
Hope staff. A substantial amount of revenue, via donations, flow through Fund 80 to support
community programs (e.g., Bags of Hope).

All Wisconsin school districts conduct a third Friday in September count as well as second Friday in January count. The September count generates a membership count of students actively attending the School District of Janesville or any other public school (“Members”). This count is used to calculate the District’s revenue limit, by factoring the full-time equivalency (FTE) of each student (“Membership FTE”). Enrollment represents the headcount of students attending any school within the District, regardless of school district residency.

Within the revenue limit worksheet, summer school membership is added to the September membership value. The following chart illustrates the September enrollment, members, and membership FTE. Summer school FTE is not included.

The District’s property tax is frequently measured in an amount per $1,000 of property value (milrate). The following table illustrates the mil rate trend since 2014-15. The recent mil rate reductions are due, in part, to a higher-than-average increase in equalized property values.

2022-23 ROCK COUNTY MIL RATES OVER TIME

Historically, the School Districts of Janesville and Milton have had the lowest rates in Rock County. Milton had not carried debt until their recent debt referendum, thus the increase from 2018-19 to 2019-20. Prior year data is illustrated as current year mil rates have not yet been set.

The District’s tax levy is comprised of five elements, representing four funds and, if applicable any given year, the prior year levy chargeback. The prior year levy chargeback relates to prior year refunds of property taxes as determined by a municipality within the District. The following chart represents the percentage of the levy as it relates to each levy.

The following tables illustrate the tax levy over the course of the past three fiscal years, with the most recent reflected by the change columns, and by municipality.

A separate illustration of the District’s budget following the Statutory format for budget adoption is included with this budget book.

Our Schools

Elementary

• Adams
• Harrison
• Jackson
• Jefferson
• Kennedy
• Lincoln
• Madison
• Monroe
• Roosevelt
• Van Buren
• Washington
• Wilson

• Edison
• Franklin
• Marshall

• Craig
• Parker

• Arise Virtual Academy
• Rock River Charter
• Rock University High School
• TAGOS Leadership Academy

NTRODUCTION

The Business Services Group is pleased to present the 2023-24 School District of Janesville (“SDJ”) budget.
A balanced budget is being presented to the Board of Education for approval on October 24, 2023. As a
result of the COVID-19 pandemic, the District is receiving federal grants to support its response. The
District is using funds to offer a robust online instruction platform, reduce class size at the elementary
level, maintain secondary instructional pathways, invest in sanitation efforts, install bottle filling stations,
provide personal protective equipment such as face masks, and improve indoor air quality. In aggregate,
the District will receive over $27 million in federal funding through three different Elementary and
Secondary School Emergency Relief (“ESSER”) and Governor’s Emergency Education Relief (“GEER”)
Funds. The funds are provided on a cost-reimbursement basis, meaning the District must incur costs and
then be reimbursed. Some of these funds are received by the District and are required to be allocated to
private schools. Some of these federal funds were used during the 2020-21 through 2022-23 fiscal years,
and most of the remainder will be used during the 2023-24 fiscal year. A portion may carryover to fiscal
year 2024-25. Of the remaining funds, a portion will be used for indoor air quality at Franklin Middle
School and social distancing in greenhouses at Craig and Parker High Schools.

DISTRICT OVERVIEW

The School District of Janesville serves over 9,300 pre-kindergarten through 12th grade students in 20
schools. As one the largest school districts in the State of Wisconsin, our instructional programs are
provided in two comprehensive high schools (9-12), three middle schools (6-8), twelve elementary schools
(K-5), and twelve P4J Community Partnership sites (4-year-old early learners). In addition, we serve
students in three charter schools: Rock University High School, Rock River Charter School, and Arise Virtual
Academy. The District is committed to preparing our students to enter the world beyond the classroom
as life-long learners with strong academic skills and a sense of self. The District is ensuring that every
graduate is college and/or career ready.

In November 2020, the District received support from electors in the form of two referenda. The first
provides $22.5 million for safety, security, and facility improvements. The second provides four years of
support in addition to our revenue limit to meet operational needs of the District. The operating
referendum provides an additional $11.5 million for 2023-24 to support:

• ongoing investment in curricular resources such as language arts
• maintain instructional technology for students and staff
• preserve reasonable class sizes
• attract and retain qualified educators and support staff

BUDGET DOCUMENT

The 2023-24 budget is being presented by fund. Prior-year data presented are actual values and not
budgeted amounts. The 2022-23 actual data have been subject to audit, but as of the release of the
budget, are not yet available in report form.

The data presented are not a collection of program-oriented budgets displaying what each program costs,
but rather, a cost accounting budget presented by functional areas describing the purpose for which
expenditures are made. This is consistent with the Wisconsin Uniform Financial Accounting Requirements
(“WUFAR”) structure and the budget presentation format required by §65.90, Wis. Stats. Narrative
explanations detailing the WUFAR system are provided throughout the document to provide additional
context.

The budget is based upon information known and decisions made through October 19, 2023. The October
15 certification of general/equalization aid and related adjustments to the revenue limit computation are
incorporated in to the budget presented here. However, additional modifications to the budget may
occur prior to the budget hearing and levy certification meeting.
So as to meet the needs of students, careful administration of the budget plan is essential to achieving
short-term and long-term strategic direction and the financial health of the District.
On behalf of the entire Business Services Group, we look forward to an exciting and successful school year
in 2023-24.

Dan McCrea, SFO
Chief Financial Officer

Matthew Sylvester-Knudtson, CPA
Director of Finance

Tami Carlson
Financial Analyst / Grants Mgr.

Wisconsin school finance practices and generally-accepted accounting principles require that the District segregate financial transactions into distinct accounting entities, called funds. Funds are used to report on-going annual costs of operating the district, to account for capital projects financed through borrowing, or to place
certain revenues and expenses in a trust. SDJ utilizes the following funds for budgetary purposes:

• General Fund $142,986,979 
• Special Education Fund $22,666,080 
• Debt Service Funds $12,275,138 
• Capital Funds $13,061,409 
• Food Service Fund $6,150,000 
• Community Svc. Fund $200,000 
• All-Fund Expenditures $197,339,606

Debt service funds include all transactions related to the payment of general obligation debt and refinancing of debt.

Capital funds are created whenever acquired resources are restricted for the acquisition or construction of specific capital projects or purchase of capital items.

The community service fund allows for the segregation of financial transactions related to community use of facilities and programs operated for the benefit of the entire community. 

All revenues, expenditures, and changes in fund balance for each fund are accounted for separately and reported to DPI. 

The District also operates and manages the following funds, which are not included in total budgeted District expenditures: Employee Benefit Trust Fund (Fund 73) – The OPEB Trust Fund accounts for resources held in trust for post-employment benefit plans legally established as an irrevocable trust.

Special Revenue Trust Fund (Fund 21) – Accounts for gifts and donations to the District.

The budget development process generally begins the December prior to start of the fiscal year and is when budget assumptions are developed based on the State of Wisconsin’s biennial budget and local determinations.

2023-24 BUDGET DEVELOPMENT ASSUMPTIONS – APRIL 2023 (ACTUAL)

Budget development assumptions create parameters, at a high level, that guide both administration and the Board of Education during the budget modeling and development process. Budget planning will remain conservative student enrollment (all students) and full time equivalent for resident students.

Planning for the district’s 2023-24 budget is a challenge because of the unknowns related to the State’s 2023-25 biennial budget cycle, which begins on July 1 but is not yet legislated nor signed by the Governor. There are many elements within the biennial budget which have a direct impact on Wisconsin school districts; there are three to highlight: 1) allowable increases in revenue limit authority, 2) equalization aid, and 3) the level of special education reimbursement. Each of the three highlighted elements may or may not impact the district’s budget. District administration will model various scenarios.

FINANCIAL MANAGEMENT

• District Administration will present, and the Board of Education will adopt, a balanced budget that meets the needs of the District’s students. 
• The District’s fund balance will not be utilized for recurring expenses. 
• The District will model the mil rate effect of pre-paying (defeasing) its long-term Fund 39 debt obligation.
• The District will secure a line of credit for the 2023-24 fiscal year, related to the historically low November cash point, prior to the December state aid payment.
• The Board will utilize its full authority to levy within the allowable revenue limit.
• ESSER III, or any federal pandemic relief provided to the district, will be used to supplement rather than supplant district expenses.
• Property values are assumed to increase by 2%.
• REVENUE Per Student Categorical Aid (outside the district’s revenue limit authority)
• The 2023-24 per pupil categorical aid increase $100 per FTE. No increase afforded in the biennial budget.
  • State Equalization Aid 
• The 2023-24 General Equalization Aid will be comparable to the prior year. The actual increase is $2,070,505.

Categorical Aid

• Reimbursement for special education funding will be modeled at 35%. The estimated reimbursement rate is 33% of prior year eligible costs.

Revenue Limit Authority

• The allowable revenue limit increase will be modeled at various amounts per FTE. A base FTE, using the September FTE count will be used. Preceding September FTE counts have been:
  • a. 2016 – 9,780
  • b. 2017 – 9,668
  • c. 2018 – 9,528
  • d. 2019 – 9,370
  • e. 2020 – 9,070
  • f. 2021 – 9,051
  • g. 2022 – 9,108
  • h. 2023 – 9,111 Actual 9,108
• For budget planning purposes the District’s summer school student FTE will remain at 85. 

Actual 76.

• Independent Charter School (ICS) membership count is estimated to remain at the September 2022 value of 17. Actual 24.6.
• The district will be in year three ($11,500,000) of a four-year non-recurring operational referendum to exceed revenue limit authority. As a step referendum, year three represents a $4,000,000 increase. In terms of overall revenue limit authority, it should be noted that fluctuating membership impacts the district’s final, September 2023, revenue limit authority.

Open Enrollment / Tuition Programs (outside the district’s revenue limit authority)

• For budget planning purposes, the district’s September open enrollment-in will remain status quo at $4,950,000 and open enrollment-out expenses will remain at $4,450,000. Budgeted open enrollment revenue is $5,000,000 with expenses budgeted at $5,200,000.
• Janesville International Exchange Program (JIEP) will initially be budgeted at $503,000 revenue. The actual JIEP budget reflects equal revenues and expenses. 

Fund 10 & 27 Grant Revenue, State and Federal Sources

• Exclusive of ESSER funding, Federal and State grant award revenue will be budgeted at prior year levels.

Parker Arts Academy

• Private funding for the Parker Arts Academy concluded during the 2022-23 year.

EXPENSES 

• The District will utilize a cast forward model consisting of the budgeted 2022-23 expenses, less administrative recommendations.
• The district will forecast scenarios relative to the district’s obligation to bargain in good faith subject to the allowable July 1, 2023, CPI-U base wage percentage increase. 
• The District will budget for a 9% increase in health insurance. Actual approx. 1%.
• The District will budget for a 0% increase in dental insurance.
• The District will budget a 5.0% increase transportation expenses
• The District will budget a $150,000 increase in utility expenses.

STAFFING

• The 2023-2024 staffing plan outcomes, BOE adopted on March 28, 2023, are factored within the budget developed to date.

The following chart and table illustrate the District’s General Fund (10) revenues, by source, beginning with the 2021-22 fiscal year to current. District revenues include approximately $6 million additional ESSER and similar funding compared to the prior year, and approximately $3.7 million less of revenue compared to the prior year due to a new lease in 2022-23. Without the two aforementioned sources, revenues would have increased approximately 7.8%. In the context of all Fund 10 revenues, approximately 56% is derived from state sources and 29% from local sources.

GENERAL FUND (10) – EXPENSES

The following chart and table illustrate the District’s General Fund (10) expenses beginning with the 2022-23 fiscal year to the current fiscal year. Compared to the prior year, expenses decreased by approximately $4 million due to ESSER and similar funding, and increased by approximately $2 million due to a new lease in 2024-25. In absence of these two items, expenses would have increased approximately 3.5%.

SPECIAL EDUCATION FUND (27) – REVENUES

The following chart and table illustrate the District’s Special Education Fund (27) revenues, by source, beginning with the 2022-23 fiscal year to the current fiscal year. The projected increase in revenue is due, in part, to some staff costs in being expensed to ESSER and the IDEA Flow Through grants and a higher transfer from Fund 10.

SPECIAL EDUCATION FUND (27) – EXPENSES

The following chart and table illustrate the District’s Special Education Fund (27) expenses beginning with the 2022-23 fiscal year to the current fiscal year. Increases in cost are primarily driven by increased staffing levels and budgeting for exposure, including positions vacant at this time

GENERAL OPERATING FUNDS (10 AND 27)

Over half of the financial support for special education services is provided via a transfer from the General Fund (10). Because of this reliance, and because special education is a component of the broad instructional services the District provides, these funds are occasionally blended. When done so, the net totals may be considered the District’s operating budget. The values illustrated are net of the inter-fund transfer.

Fund 38 – Non-Referendum Approved Debt

Fund 38 – Non-Referendum Approved Debt

Fund 38 debt, within the District’s revenue limit authority, accounts for debt related to the merger of the two Wisconsin retirement systems and the District’s use of the Act 32 Energy Exemption for work related to facility improvements, predominately at Edison Middle School, replacing outdated boilers and other mechanical, electrical, and plumbing systems. Act 32 is no longer available for Wisconsin school districts. In 2019, the District refinanced debt related to the merged retirement systems saving $1,566,860 or $150,000 a year on an annual basis. 

During 2023-24, the District defeased $5,275,000 of principal related to the retirement-system debt.
Debt service is levied on the calendar year basis, but budgeted for on the fiscal year basis.
At the end of the 2024-25 fiscal year, the following debt balances will be outstanding.

• Act 32 $3,185,000
• Retirement-system $0

Fund 39 – Referendum Approved Debt

The District’s Fund 39 debt relates to the 2006 approved referendum for the purpose of building renovations at Craig and Parker High Schools, and various elementary schools, and the 2020 capital referendum. The 2023-24 budget does not include an allowance for defeasing Fund 39 debt.
At the end of the 2024-25 fiscal year, the following debt balances will be outstanding.

• 2016 Issuance $1,300,000
• 2020 Issuance $295,000

Fund 46 – Long-Term Capital Improvement

In 2015, the Board of Education acted to establish a long-term capital improvement fund, which could not be utilized until five years after its inception. Investing in this fund is accomplished by transferring funds from Fund 10 to 46 during a given fiscal year or no later than July 30 following fiscal-year-end. Expenses for 2023-24 related to capital projects at Edison and Franklin Middle Schools and Craig and Parker High Schools.

Fund 49 – Capital Projects

Upon issuance of the 2020 referendum-approved debt, a capital projects fund was established to account for the costs associated with those projects.

The District self-operates its school food service program, absent from the local levy, serving breakfast and lunch in participation with the United States Department of Agriculture, National School Lunch Program.

The District established Fund 73 as a mechanism to account for post-employment benefit obligations such as health insurance. The District, generally, makes both annual contributions to and withdrawals from the fund. The District’s expenses related to post-employment benefits are decreasing over time, related to the reduction of such benefits. 

As a fiduciary fund, a budget is not required to be established for Fund 73.

Fund 21 accounts for gifts and donations to the District. 
As donations and expenditures are not always known, a budget is not established for Fund 21.

COMMUNITY SERVICE FUND (80)

In 2019, the Board of Education embraced the opportunity to support early literacy utilizing a Fund 80 levy as a financial vehicle. For 2023-24, the levy includes $25,000 in support of Bags of Hope staff. A substantial amount of revenue, via donations, flow through Fund 80 to support community programs (e.g., Bags of Hope).

All Wisconsin school districts conduct a third Friday in September count as well as second Friday in January count. The September count generates a membership count of students actively attending the School District of Janesville or any other public school (“Members”). This count is used to calculate the District’s revenue limit, by factoring the full-time equivalency (FTE) of each student (“Membership FTE”). Enrollment represents the headcount of students attending any school within the District, regardless of school district residency.

Within the revenue limit worksheet, summer school membership is added to the September membership value. The following chart illustrates the September enrollment, members, and membership FTE. Summer school FTE is not included.

The District’s property tax is frequently measured in an amount per $1,000 of property value (mil rate). The following table illustrates the mil rate trend since 2015-16. The recent mil rate reductions are due, in part, to a higher-than-average increase in equalized property values.

2023‐24 ROCK COUNTY MIL RATES OVER TIME

Historically, the School Districts of Janesville and Milton have had the lowest rates in Rock County. Milton had not carried debt until their recent debt referendum, thus the increase from 2018‐19 to 2019‐20. Prior year data is illustrated as current year mil rates have not yet been set.

The District’s tax levy is comprised of five elements, representing four funds and, if applicable any given year, the prior year levy chargeback. The prior year levy chargeback relates to prior year refunds of property taxes as determined by a municipality within the District. The following chart represents the percentage of the levy as it relates to each levy.

The following tables illustrate the tax levy over the course of the past three fiscal years, with the most recent reflected by the change columns, and by municipality.

A separate illustration of the District’s budget following the Statutory format for budget adoption is included with this budget book.

Our Schools

Elementary

• Adams
• Harrison
• Jackson
• Jefferson
• Kennedy
• Lincoln
• Madison
• Monroe
• Roosevelt
• Van Buren
• Washington
• Wilson

• Edison
• Franklin
• Marshall

• Craig
• Parker

• Arise Virtual Academy
• Rock River Charter
• Rock University High School
• TAGOS Leadership Academy

INTRODUCTION

The Business Services Group is pleased to present the 2022‐23 School District of Janesville (“SDJ”) budget.   A balanced budget is being presented to the Board of Education for approval on October 25, 2022.  As a result of the COVID‐19 pandemic, the District is receiving federal grants to support its response.   The District is using funds to offer a robust online instruction platform, reduce class size at the elementary level, maintain secondary instructional pathways, invest in sanitation efforts, install bottle filling stations, provide personal protective equipment such as face masks, and improve indoor air quality.  In aggregate, the District will receive over $27 million in federal funding through three different Elementary and Secondary School Emergency Relief (“ESSER”) and Governor’s Emergency Education Relief (“GEER”) Funds.  The funds are provided on a cost‐reimbursement basis, meaning the District must incur costs and then be reimbursed.  Some of these funds are received by the District and are required to be allocated to private schools.  Some of these federal funds were used during the 2020‐21 and 2021‐22 fiscal years,some will be used during the 2022‐23 fiscal year, and remaining funds will be carried forward to future fiscal years.

During the 2021‐22 school year, in response to COVD‐19 and the use of ESSER II and III,   the District engaged stakeholders, and evaluated and prioritized options for the use of the provided funding.  COVID‐ 19 response funding is broadly targeted towards:

• Preparedness and Response to COVID 19
• Addressing Long‐Term School Closure
• Educational Technology
• Outreach & Service Delivery to Special Populations
• Addressing Afterschool and Summer Learning
• Mental Health Service and Supports  

DISTRICT OVERVIEW

 The School District of Janesville serves over 9,400 pre‐kindergarten through 12th grade students in 21 schools. As one the largest school districts in the State of Wisconsin, our instructional programs are provided in two comprehensive high schools(9‐12), three middle schools(6‐8), twelve elementary schools (K‐5), and twelve P4J Community Partnership sites (4‐year‐old early learners).    In addition, we serve students in four charter schools: Rock University High School, Rock River Charter School, TAGOS Leadership Academy, and Arise Virtual Academy. The District is committed to preparing our students to enter the world beyond the classroom as life‐long learners with strong academic skills and a sense of self.   The District is ensuring that every graduate is college and/or career ready.

In November 2020, the District received support from electors in the form of two referenda.  The first provides $22.5 million for safety, security, and facility improvements.  The second provides four years of support in addition to our revenue limit to meet operational needs of the District.    The operating referendum provides an additional $7.5 million for 2022‐23 to support:

• ongoing investment in curricular resources such as language arts
• maintain instructional technology for students and staff
• preserve reasonable class sizes
• attract and retain qualified educators and support staff

The 2022‐23 budget is being presented by fund.   Prior‐year data presented are actual values and not budgeted amounts.  The 2021‐22 actual data have been subject to audit, but as of the release of the budget, are not yet available in report form.

The data presented are not a collection of program‐oriented budgets displaying what each program costs, but rather, a cost accounting budget presented by functional areas describing the purpose for which expenditures are made.  Thisis consistent with the Wisconsin Uniform Financial Accounting Requirements (“WUFAR”) structure and the budget presentation format required by §65.90, Wis. Stats.  Narrative explanations detailing the WUFAR system are provided throughout the document to provide additional context.  

The budget is based upon information known and decisions made through October 17, 2022.  The October 15 certification of general/equalization aid and related adjustments to the revenue limit computation are incorporated in to the budget presented here.  

So as to meet the needs of students, careful administration of the budget plan is essential to achieving short‐term and long‐term strategic direction and the financial health of the District.  

On behalf of the entire Business Services Group, we look forward to an exciting and successful school year in 2022‐23

Dan McCrea, SFO
Chief Financial Officer

Matthew Sylvester-Knudtson, CPA
Director of Finance

Tami Carlson
Financial Analyst / Grants Mgr.

Wisconsin school finance practices and generally‐accepted accounting principles require that the District segregate financial transactions into distinct accounting entities, called funds.  Funds are used to report on‐going annual costs of operating the district, to account for capital projects financed through borrowing, or to place certain revenues and expenses in a trust.  SDJ utilizes the following funds for budgetary purposes:

• General Fund (Fund 10) $137,336,796
• Special Education Fund (Fund 27) $21,828,488
• Debt Service Funds (Funds 38 & 39) $17,197,863
• Capital Funds (Funds 46 & 49) $8,152,656
• Food Service Fund (Fund 50) $5,500,000
• Community Service Fund (Fund 80) $175,000
• All-Fund Expenditures $190,190,803

Debt service funds include all transactions related to the payment of general obligation debt and refinancing of debt.

Capital funds are created whenever acquired resources are restricted for the acquisition or construction of specific capital projects or purchase of capital items.

The community service fund allows for the segregation of financial transactions related to community use of facilities and programs operated for the benefit of the entire community.

All revenues, expenditures, and changes in fund balance for each fund are accounted for separately and reported to DPI.

The District also operates and manages the following funds, which are not included in total budgeted District expenditures:

Employee Benefit Trust Fund (Fund 73) – The OPEB Trust Fund accounts for resources held in trust for post‐employment benefit plans legally established as an irrevocable trust.

Special Revenue Trust Fund (Fund 21) – Accounts for gifts and donations to the District

The budget development process generally begins the December prior to start of the fiscal year and is when budget assumptions are developed based on the State of Wisconsin’s biennial budget and local determinations.  The 2022‐23 budget represents the second year of the State’s 2021‐23 biennial budget.  Through this budget, the District will not realize a change in per‐pupil revenue limit or per‐pupil adjustment aid.   

2022‐23 BUDGET DEVELOPMENT ASSUMPTIONS

Budget development assumptions create parameters, at a high level, that guide both administration and the Board of Education during the budget modeling and development process. Budget planning during a pandemic will remain conservative, in particular, student enrollment (all students) and full time equivalent for resident students.

FINANCIAL MANAGEMENT

• District Administration will present and the Board of Education will adopt a balanced budget that meets the needs of the District’s students.
• The District’s fund balance will not be utilized for recurring expenses.
• The District will model the mil rate effect of pre‐paying (defeasing) its long‐term Fund 39 debt obligation.
• The District willsecure a line of credit for the 2022‐23 fiscal year, related to the historically low November cash point, prior to the December state aid payment.
• The Board will utilize its full authority to levy within the allowable revenue limit.
• ESSER grants provided to the district, will be used to supplement rather than supplant district expenses.

REVENUE

Per Student Categorical Aid (outside the district’s revenue limit authority)

• The 2022‐23 per pupil categorical aid increase $0.00 per FTE.   State Equalization Aid
• The 2022‐23 General Equalization Aid increase for the District will be $0.00.   Categorical Aid
• Reimbursement for special education funding will remain unchanged from the current prorated amount of approximately 30%.

Revenue Limit Authority

• The allowable revenue limit increase will be $0.00 per FTE. A base FTE, using the September FTE count will be used. Preceding September FTE counts have been:
  • a. 2016 – 9,780
  • b. 2017 – 9,668
  • c. 2018 – 9,528
  • d. 2019 – 9,365
  • e. 2020 – 9,070
  • f. 2021 – 9,051
  • g. 2021 – 9,051 – assumption
•  For budget planning purposes the District’s summer school student FTE will remain at 79.
•  The district will be in year two of a four‐year non‐recurring operational referendum to exceed revenue limit authority, which will provide $4,000,000 of additional grossrevenue limit authority compared to the prior year (for a total of $7,500,000).  The actual amount realized will be less due to declining student membership.

Open Enrollment / Tuition Programs (outside the district’s revenue limit authority)

• For budget planning purposes, the District’s open enrollment‐in will maintain a net open enrollment in amount similar to the prior year.  
• Janesville International Exchange Program (JIEP) will initially be budgeted at prior year enrollment levels.

Fund 10 & 27 Grant Revenue, State and Federal Sources

• Federal and State grant award revenue will be budgeted at prior year level

EXPENSES

• The District will utilize a cast forward model consisting of the budgeted 2022‐23 expenses.  
• The District will budget for a 4.7% increase in base wages, subject to the allowable July 1, 2022 CPI‐U percentage.  
• The District will budget for a 9% increase in health insurance.  
• The District will budget for a 4% increase in dental insurance.  
• The District will budget for a 1% increase in other expenses.

STAFFING

• Staffing plan assumptions are developed within the guidelines established by Board Policy 4221.
  • a. TPR of 1:25 for grades K‐3
  • b. TPR of 1:30 for grades 4‐5
  • c. TRP of 1:30 for grades 6‐8
  • d. TPR of 1:32 for grades 9‐1

The following chart and table illustrate the District’s General Fund (10) revenues, by source, beginning with the 2020‐21 fiscal year to current. District revenues include approximately $10 million additional ESSER and similar funding compared to the prior year, and approximately $2 million less of revenue compared to the prior year due to a change in lease accounting.  Without the two aforementioned sources, revenues would have increased approximately 0.2%.  In the context of all Fund 10 revenues, approximately 57% is derived from state sources and 23% from local sources.

The following chart and table illustrate the District’s General Fund (10) expenses beginning with the 2020‐21 fiscal year to the current fiscal year.  Compared to the prior year, expensesincreased by approximately $10 million due to ESSER and similar funding and decreased by approximately $2 million due to a change in lease accounting.  In absence of these two items, expenses would have increased approximately 0.2%.  

The following chart and table illustrate the District’s Special Education Fund (27) revenues, by source, beginning with the 2020‐21 fiscal year to the current fiscal year.  The projected increase in revenue is due, in part, to some staff costs in being expensed to the ESSER grants in 2022‐23

The following chart and table illustrate the District’s Special Education Fund (27) expenses beginning with the 2020‐21 fiscal year to the current fiscal yea

Over half of the financial support for special education services is provided via a transfer from the General Fund (10).  Because of this reliance, and because special education is a component of the broad instructional services the District provides, these funds are occasionally blended.   When done so, the net totals may be considered the District’s operating budget.  The values illustrated are net of the interfund transfer

Fund 38 – Non-Referendum Approved Debt

Fund 38 debt, within the District’s revenue limit authority, accounts for debt related to the merger of the two Wisconsin retirement systems and the District’s use of the Act 32 Energy Exemption for work related to facility improvements, predominately at Edison Middle School, replacing outdated boilers and other mechanical, electrical, and plumbing systems. Act 32 is no longer available for Wisconsin school districts. In 2019, the District refinanced debt related to the merged retirement systems saving $1,566,860 or $150,000 a year on an annual basis.  Debt service is levied on the calendar year basis, but budgeted for on the fiscal year basis.

Fund 39 – Referendum Approved Debt The District’s Fund 39 debt relates to the 2006 approved referendum for the purpose of building renovations at Craig and Parker High Schools, and various elementary schools, and the 2020 capital referendum.  Since 2019, the District continues to take advantage of a strategy to defease debt, allowing for savings and the reduction of future debt obligations. The District is planning to defease approximately $6 million of debt with the current budget.

Fund 46 – Long-Term Capital Improvement

In 2015, the Board of Education acted to establish a long‐term capital improvement fund, which could not be utilized until five years after its inception. Investing in this fund is accomplished by transferring funds from Fund 10 to 46 during a given fiscal year or no later than July 30 following fiscal‐year‐end.

Fund 49 – Capital Projects

Upon issuance of the 2020 referendum‐approved debt, a capital projects fund was established to account for the costs associated with those projects.

The District self‐operates its school food service program, absent from the local levy, serving breakfast and lunch in participation with the United States Department of Agriculture, National School Lunch Program.  

The District established Fund 73 as a mechanism to account for post‐employment benefit obligations such as health insurance.  The District, generally, makes both annual contributions to and withdrawals from the fund.  The District’s expensesrelated to post‐employment benefits are decreasing over time, related to the reduction of such benefits. As a fiduciary fund, a budget is not required to be established for Fund 73.

Fund 21 accounts for gifts and donations to the District.

As donations and expenditures are not always known, a budget is not established for Fund 21.

COMMUNITY SERVICE FUND (80)

In 2019, the Board of Education embraced the opportunity to support early literacy utilizing a Fund 80 levy as a financial vehicle.  Fund 80 is also utilized to account for other community service initiatives that are not financed by the levy (e.g., Bags of Hope).

All Wisconsin school districts conduct a third Friday in September count as well as second Friday in January count. The September count generates a membership count of students actively attending the School District of Janesville or any other public school (“Members”).  This count is used to calculate the District’s revenue limit, by factoring the full‐time equivalency (FTE) of each student (“Membership FTE”).  Enrollment represents the headcount of students attending any school within the District, regardless of school district residency. Within the revenue limit worksheet, summer school membership is added to the September membership value.   The following chart illustrates the September enrollment, members, and membership FTE.  Summer school FTE is not included.

Base revenue is key to a District’s long‐term financial health.  One of the best comparable data points between and among school districts is base revenue (line seven of the revenue limit worksheet). The District’s base revenue has been decreasing over time as non‐recurring exemptions expire. The recent uptick in 2020‐21 relates to the low revenue limit ceiling increasing to $10,000 per member, up from $9,700. The District’s need to seek an operating referendum was a direct result of decreasing membership and decreasing base revenue, each of which are factored into the District’s financial forecast model

The District’s property tax is frequently measured in an amount per $1,000 of property value (mil rate). The following table illustrates the mil rate trend since 2015-16. The proposed mil rate is less than the mil rate originally projected ($8.87) when the referenda passed in November, 2020.

Rock County Mil Rates Over Time

Historically, the School Districts of Janesville and Milton have had the lowest rates in Rock County. Milton has not carried debt until their recent debt referendum, thus the increase from 2018-19 to 2019-20.

The District’s property tax is frequently measured in an amount per $1,000 of property value (mil rate).  The following table illustrates the mil rate trend since 2013‐14.  The mil rate reduction for 2022‐23 is due, in part, to a higher‐than‐average increase in equalized property values.

2021‐22 ROCK COUNTY MIL RATES OVER TIME

Historically, the School Districts of Janesville and Milton have had the lowestratesin Rock County. Milton had not carried debt until their recent debt referendum, thus the increase from 2018‐19 to 2019‐20.  Prior year data is illustrated as current year mil rates have not yet been set.

Tax Levy

The District’s tax levy is comprised of five elements, representing four funds and, if applicable any given year, the prior year levy chargeback. The prior year levy chargeback relates to prior year refunds of property taxes as determined by a municipality within the District. The following chart represents the percentage of the levy as it relates to each levy.

The following tables illustrate the tax levy over the course of the past three fiscal years, with the most recent reflected by the change columns, and the 2020‐21 levy by municipality

A separate illustration of the District’s budget following the Statutory format for budget adoption is included with this budget book

Our Schools

Elementary

• Adams
• Harrison
• Jackson
• Jefferson
• Kennedy
• Lincoln
• Madison
• Monroe
• Roosevelt
• Van Buren
• Washington
• Wilson

• Edison
• Franklin
• Marshall

• Craig
• Parker

• Arise Virtual Academy
• Rock River Charter
• Rock University High School
• TAGOS Leadership Academy

INTRODUCTION

The Business Services Group is pleased to present the 2021-22 School District of Janesville (“SDJ”) budget.  A balanced budget is being presented to the Board of Education for approval on October 26, 2021.  As a result of the COVID-19 pandemic, the District will receive federal grants to aid the response to the pandemic.  The District is using funds to offer a robust online instruction platform, reduce class size at the elementary level, maintain secondary instructional pathways, invest in sanitation efforts, install bottle filling stations, and provide personal protective equipment such as face masks.  Federal funding is also assisting the District to counter the increased costs associated with transporting students in a socially distanced manner, maintaining a clean and disinfected environment, and by providing the necessary personal protective equipment for students and staff.  In aggregate, the District will receive over $27 million in federal funding through three different Elementary and Secondary School Emergency Relief and Governor’s Emergency Education Relief Funds.  The funds are provided on a cost-reimbursement basis, meaning the District must incur costs and then be reimbursed, and some of these funds are received by the District and are required to be allocated to private schools.  Some of these federal funds were used during the 2020-21 fiscal year, some will be used during the 2021-22 fiscal year, and remaining funds will be carried forward to future fiscal years.  

During the 2021-22 school year, in response to COVD-19 and the use of ESSER II and III,   the District will engage stakeholders, evaluate and prioritize options for the use of provided funding. Keep in mind that COVID response funding is broadly targeted towards:

• Preparedness and Response to COVID 19
• Addressing Long-Term School Closure
• Educational Technology
• Outreach & Service Delivery to Special Populations
• Addressing Afterschool and Summer Learning
• Mental Health Service and Supports  

Related to process and qualifying expenditures, the District will continue to seek guidance from the State of Wisconsin’s Department of Public Instruction and the US Department of Education.    

DISTRICT OVERVIEW  

The School District of Janesville serves over 9,400 pre-kindergarten through 12th grade students in 21 schools. As one the largest school districts in the State of Wisconsin, our instructional programs are provided in two comprehensive high schools (9-12), three middle schools (6-8), twelve elementary schools (K-5), and thirteen P4J Community Partnership sites (4-year-old early learners).  In addition, we serve students in four charter schools: Rock University High School, Rock River Charter School, TAGOS Leadership Academy, and Arise Virtual Academy. The District is committed to preparing our students to enter the world beyond the classroom as life-long learners with strong academic skills and a sense of self.  The District is ensuring that every graduate is college and/or career ready.  

In 2017, the School District adopted the Janesville Promises to address key elements impacting student and school success.  These Promises utilize five components with indicators that move the entire District forward. Our ultimate Promise is that every student will graduate ready for college, career, and life. The District Staffing Plan for 2021-22 has served as the foundation for budget development activities.  

Last November, the District received support from electors in the form of two referenda.  The first provides $22.5 million for safety, security, and facility improvements.  The second provides four years of support in addition to our revenue limit to meet operational needs of the District.  The operating referendum provides an additional $3.5 million for 2021-22 to support:  

• ongoing investment in curricular resources such as language arts
• maintain instructional technology for students and staff
• preserve reasonable class sizes
• attract and retain qualified educators and support staff

BUDGET DOCUMENT  

The 2021-22 budget is being presented by fund.  When comparing current year budget to prior-year expenditures, it may be helpful to keep in mind that the prior-year data is actual and not as originally budgeted.  The 2020-21 actual data has been subject to audit, but as of the release of the budget, is not yet available in report form.  

Readers will find that data presented is not a collection of program-oriented budgets displaying what each program costs, but rather, a cost accounting budget presented by functional areas describing the purpose for which expenditures are made.  

This is consistent with the Wisconsin Uniform Financial Accounting Requirements (WUFAR) structure and the budget presentation format required by §65.90, Wis. Stats.  In order to assist the reader in understanding the meaning behind the numbers, narrative explanations detailing the WUFAR system are provided throughout the document.  

The budget is based upon information known and decisions made through October 15, 2021. The October 15 certification of general/equalization aid and related adjustments to the revenue limit computation are incorporated in to the 2021-2022 budget presented here.  

So as to meet the needs of students, careful administration of the budget plan is essential to achieving short-term and long-term strategic direction and the financial health of the District.   On behalf of the entire Business Services Group, we look forward to an exciting and successful school year in 2021-22.  

• Dan McCrea, SFO, Chief Financial Officer
• Matthew Sylvester-Knudtson, CPA Director of Finance
• Tami Carlson,  Financial Analyst/Grants Mgr.  

October 18, 2021 

Wisconsin school finance practices and generally-accepted accounting principles require that the District segregate financial transactions into distinct accounting entities, called funds.  Funds are used to report on-going annual costs of operating the district, to account for capital projects financed through borrowing, or to place certain revenues and expenses in a trust.  SDJ utilizes the following funds for budgetary purposes:  

• General Fund (Fund 10) Special Education Fund (Fund 27) $127,262,215
• Special Education Fund (Fund 27) $20,529,840
• Debt Service Funds (Funds 38 & 39) $13,860,967
• Capital Project Funds (Funds 46 & 49) $17,000,000
• Food Service Fund (Fund 50) $5,500,000
• Community Service Fund (Fund 80)  $175,000
• All-Fund Total $184,328,022

Debt service funds include all transactions related to the payment of general obligation debt and refinancing of debt.  

Capital project funds are created whenever acquired resources are restricted for the acquisition or construction of specific capital projects or purchase of capital items.  

The community service fund allows for the segregation of financial transactions related to community use of facilities and programs operated for the benefit of the entire community.  

All revenues, expenditures, and changes in fund balance for each fund are accounted for separately and reported to DPI.  

The District also operates and manages the following trust funds, which are not included in total budgeted District expenditures:  

Employee Benefit Trust Fund (Fund 73) – The OPEB Trust Fund accounts for resources held in trust for post-employment benefit plans legally established as an irrevocable trust.  

Special Revenue Trust Fund (Fund 21) – Accounts for gifts and donations to the District. 

The budget development process generally begins the December prior to start of the fiscal year, and is when budget assumptions are developed based on the State of Wisconsin’s biennial budget as well as local determinations.  The 2021-22 budget is the first year of the State’s 202123 biennial budget.  Through this budget, the District will not realize a change in per-pupil revenue limit or per-pupil adjustment aid.   2021-22 BUDGET

DEVELOPMENT ASSUMPTIONS

Budget development assumptions create parameters, at a high level, that guide both administration and the Board of Education during the budget modeling and development process. Budget planning during a pandemic will remain conservative, in particular, student enrollment (all students) and full time equivalent for resident students.

FINANCIAL MANAGEMENT

• District Administration will present and the Board of Education will adopt a balanced budget that meets the needs of the District’s students.
• The District’s fund balance will not be utilized for recurring expenses.
• The District will model the mil rate effect of pre-paying (defeasing) its long-term Fund 39 debt obligation.
• The District will secure a line of credit for the 2021-2022 fiscal year, related to the historically low November cash point, prior to the December state aid payment.
• The Board will utilize its full authority to levy within the allowable revenue limit.
• ESSER II, or any federal pandemic relief provided to the district, will be used to supplement rather than supplant district expenses.
• Property values are assumed to increase by 3%. The current five-year average is 5.8%.
• In the Spring of 2021 the Administration will provide the Board of Education a budget prioritization list, programs and staffing, aligned with the District’s Five Promises. REVENUE  Per Student Categorical Aid (outside the district’s revenue limit authority)
• The 2021-2022 per pupil categorical aid increase $0.00 per FTE.   State Equalization Aid
• The state biennial budget is yet to be determined, but the assumption is that there will not be increased State Equalization Aid for 2021-2022 fiscal year. Categorical Aid
• Reimbursement for special education funding will remain unchanged from the current legislated amount of 30%.  Revenue Limit Authority
• The allowable revenue limit increase will be $0.00 per FTE. A base FTE, using the September FTE count will be used. Preceding September FTE counts have been:
  • a. 2015 – 9,898
  • b. 2016 – 9,780
  • c. 2017 – 9,668
  • d. 2018 – 9,528
  • e. 2019 – 9,365
  • f. 2020 – 9,063  
  • g. 2021 – 9,063 – assumption  
• For budget planning purposes the District’s summer school student FTE will remain at 87.  
• The district will be in year one, $3,500,000, of a four-year non-recurring operational referendum to exceed revenue limit authority.  Open Enrollment / Tuition Programs (outside the district’s revenue limit authority)
• For budget planning purposes, the District’s open enrollment-in will remain status quo at 630 and open enrollment-out will remain at 514.  
• Janesville International Exchange Program (JIEP) will initially be budgeted at 2020-2021 enrollment levels.  Fund 10 & 27 Grant Revenue, State and Federal Sources
• Federal and State grant award revenue will be budgeted at prior year levels.      

EXPENSES

• The District will utilize a cast forward model consisting of the budgeted 2020-2021 expenses.  
• The District will budget for a 2.50% increase in base wages, subject to the allowable July 1, 2021 CPI-U percentage.  
• The District will explore additional compensation strategies, up to .25% of base wages, related to competitive market conditions.
• The District will budget for a 9% increase in health insurance.  
• The District will budget for a 6% increase in dental insurance.
• The District will budget for a 1.0% increase in other expenses.

STAFFING

• 2021-22 staffing plan assumptions are developed within the guidelines established by Board Policy 4221.
  • a. TPR of 1:25 for grades K-3
  • b. TPR of 1:30 for grades 4-5
  • c. TRP of 1:30 for grades 6-8
  • d. TPR of 1:32 for grades 9-12 

The following chart and table illustrate the District’s General Fund (10) revenues, by source, beginning with the 2019-20 fiscal year to current. District revenues include approximately $1.9 million additional ESSER funding compared to the prior year and an additional approximately $700,000 related to a new lease entered into.  Without the two aforementioned sources, revenues would have increased approximately 3.6%.  In the context of all Fund 10 revenues, approximately 60% is derived from state sources and 25% from local sources. 

The following chart and table illustrate the District’s General Fund (10) expenses beginning with the 2019-20 fiscal year to the current fiscal year.  District expenses include approximately $1.9 million additional ESSER costs compared to the prior year and an additional approximately $700,000 related to a new lease entered into.  Without the two aforementioned items, expenses would have increased approximately 4.3%. As people are the District’s primary resource and method of educational delivery, wages and benefits account for over 76% of General and Special Education Funds expenses, net of transfers.  

The following chart and table illustrate the District’s Special Education Fund (27) revenues, by source, beginning with the 2019-20 fiscal year to the current fiscal year.  The projected decrease in state funding is due, in part, to some staff costs in 2020-21 being expensed to the ESSER grants.  This results in lower state aid in the next year (2021-22). 

Fund 38 – Non-Referendum Approved Debt

Fund 38 debt, within the District’s revenue limit authority, accounts for debt related to the merger of the two Wisconsin retirement systems and the District’s use of the Act 32 Energy Exemption for work related to facility improvements, predominately at Edison Middle School, replacing outdated boilers and other mechanical, electrical, and plumbing systems. Act 32 is no longer available for Wisconsin school districts. It should be noted that in 2019 the district refinanced debt related to the merged retirement systems saving $1,566,860 or $150,000 a year on an annual basis.  Debt service is levied on the calendar year basis, but budgeted for on the fiscal year basis. 

The District’s Fund 39 debt relates to the 2006 approved referendum for the purpose of building renovations at Craig and Parker High Schools, and various elementary schools, and the 2020 capital referendum.  Since 2019 the district took advantage of a strategy, to pre-pay debt, allowing for savings and the restructuring of debt retiring in 2028. The District is planning to pre-pay $4,100,000 of debt.  

In 2015, the Board of Education acted to establish a long-term capital improvement fund, which could not be utilized until five years after its inception. Investing in this fund is accomplished by transferring funds from Fund 10 to 46 during a given fiscal year or no later than July 30 following fiscal-year-end. 

Fund 49 – Capital Projects

Upon issuance of the 2020 referendum-approved debt, a capital projects fund was established to account for the costs associated with those projects.

The District self-operates its school food service program, absent from the local levy, serving breakfast and lunch in participation with the United States Department of Agriculture, National School Lunch Program.

The District established Fund 73 as a mechanism to account for post-employment benefit obligations such as health insurance.  The District, generally, makes both annual contributions to and withdrawals from the fund.  The District’s expenses related to post-employment benefits are decreasing over time, related to the reduction of such benefits.   A budget is not required to be established for Fund 73. 

COMMUNITY SERVICE FUND (80)

In 2019, the Board of Education embraced the opportunity to support early literacy utilizing a Fund 80 levy as a financial vehicle.  Fund 80 is also utilized to account for other community service initiatives that are not financed by the levy. 

Enrollment represents the headcount of students on any given school day attending any school within the District.  All Wisconsin school districts conduct a third Friday in September count as well as second Friday in January count.  The September count generates a membership count of students actively attending the School District of Janesville or any other public school.  This count is used to calculate the District’s revenue limit, by factoring the full-time equivalency (FTE) of each student.  Within the revenue limit worksheet, summer school membership is added to the September membership value.   

In 1993, the State of Wisconsin instituted revenue limits for Wisconsin public schools. The following table illustrates, since 2005-06, the revenue limits the School District of Janesville has operated under. The identified values indicate the allowable increase per member on a threeyear rolling average.  

In 1993, the State of Wisconsin instituted revenue limits for Wisconsin public schools. The following table illustrates, since 2005-06, the revenue limits the School District of Janesville has operated under. The identified values indicate the allowable increase per member on a threeyear rolling average.  

The District’s property tax is frequently measured in an amount per $1,000 of property value (mil rate).  The following table illustrates the mil rate trend since 2015-16.  The proposed mil rate is less than the mil rate originally projected ($8.87) when the referenda passed in November, 2020.

Historically, the School Districts of Janesville and Milton have had the lowest rates in Rock County. Milton has not carried debt until their recent debt referendum, thus the increase from 2018-19 to 2019-20.  

The District’s tax levy is comprised of five elements, representing four funds and, if applicable any given year, the prior year levy chargeback. The prior year levy chargeback relates to prior year refunds of property taxes as determined by a municipality within the district. The following chart represents the percentage of the levy as it relates to each levy.  

The following tables illustrate the tax levy over the course of the past three fiscal years, with the most recent reflected by the change columns, and the 2019-2020 levy by municipality. 

BUDGET ADOPTON FORMAT – EXPENSES BY FUNCTION, FUND 10

BUDGET ADOPTION FORMAT – SPECIAL PROJECTS FUND, FUND 21

Fund 21, Special Revenue Trust Fund is used to account for trust funds, such as student activity accounts, building and district level gifts and donations.