Published March 8, 2014
The following is a financial analysis of 4K in WGSD using what is call a “past years” projection method. This is the method recommended by the DPI Finance Department. You can read DPI’s response to my questions about how a district can determine the financial impact of implementing a 4K program.
The results show that over the last 5 years the WGSD has lost $1,200,000 in surplus revenue and $1,800,000 in missed four year old kindergarten services. The combined loss to the WGSD community is over $3,000,000.
The table below compares two scenarios: “Without 4K” and “With 4K”, followed by a summary in yellow. The bottom line is that even after fully funding a 4K program for five years the WGSD would still have more than $1,200,000 in surplus revenue that could have been used locally to improve student services or reduce the actual levy (reduce property taxes).
Keep in mind that despite my requests to meet with Superintendent Joch to discuss the financial impact of 4K, the WGSD Board directed him to NOT meet with me. Fortunately the WGSD has finally acknowledged that my calculations are correct. And while it is important that the discussion now moves forward about how and when to implement 4K in WGSD, nobody should forget what has already been lost due to the lack of due diligence from Finance Committee Chair Dan Jensen and our former district administrator.
Notes:
1. State aid is received in the year after the expenditures are incurred
2. The first year cost of $360,000 is paid back in year 2 (2010-11) resulting in a 2-year net increase in revenue of over $53,000
3. State aid and revenue limits are actual in “without 4K” scenario
4. State aid and revenue limits in “with 4K” scenario are what would have been received due to an increase in FTE of 72 students (equivalent to 120 students in 4K adjusted for the 0.6 FTE model)
5. The combined loss in 4K services is the sum of the cost of 4K for all 5 years = $1,850,000
6. All local levy amounts were kept equal except in year 4 of the projection (2012-23) where the the local levy would have been reduced by $84,997 if the 4K program was in place because the actual levy exceeded the amount that would have been allowed
7. The local levy (property taxes) could have been reduced by the amount shown in the “Cumulative Change to Reserve Fund Balance” which would have been over $1.2 million this year (2013-14) had the WGSD implemented a district wide 4K program in 2009-10.
8. Link to state aid worksheets used in “with 4K” scenario
9. Link to revenue limit worksheets used in “with 4K” scenario