Revenue Purpose Statement-What it is and Why It's Important

Most of the time when we have discussions about school finance and the status of our financial condition at Hudson, I am specifically talking about the general fund.  This is the largest fund that makes up our budget, the one that bears the cost of operations for our school district including salaries for staff, electricity, and other instructional supplies.  This is the fund that we are typically most concerned about when we talk about such things as financial solvency ratio and unspent balance. 

The Greenhouse project was funded through a combination
of PPEL and LOSST funds.  The total cost of this project
was in the neighborhood of $53,829.50.

In addition, there are other funds that we use in tandem with the general fund that are incredibly important to our bottom line.  Each fund has a separate purpose and only certain expenditures can be attributed to that particular fund.  For example, the nutrition fund can only be used for expenses related to the hot lunch program, while the management fund can only be used to pay for such things as property/casualty insurance or benefits for our early retirees.  The health fund is pretty self explanatory; we use that to pay health insurance premiums and claims, while the dental fund serves a comparable purpose.

We also have two funds that are designated specifically for physical plant purposes such as the repair, replacement, or upgrade of our facilities.  Those would be the PPEL Fund (Physical Plant and Equipment Levy) and the LOSST Fund (Local Option Sales and Service Tax).  While repairs and upgrades can also be paid out of the general fund, our guiding philosophy is to pay for as many of our repairs and upgrades as possible out of our building funds in an effort to protect the financial stability and solvency of the general fund.  When we are preparing to initiate various projects, it is important during the planning phase to determine which fund is most appropriate.  Part of that consideration has to be what is currently allowable under state law.  Provided the sum of the repair project or upgrade exceeds $500, we can use these funds for repairs to the buildings and grounds, furnishing buildings and providing equipment for classrooms, or they can be used to fund improvements and building projects in our school district.  Without these funds and the revenue they generate, the cost of repairs and improvements would be borne out of the general fund.  I think everyone is aware of the challenges we are facing in our general fund, and the fact that our general fund simply could not support these building projects. 

This may not look like much, but it was the best I could
come up with for a photo!  Phase One of our elementary
school electrical upgrade was completed this summer.  The
total cost of this project (excluding engineering and
architectural fees) was approximately $87,000.  The
school was also the recipient of a $25,000 Harkin Grant
to help defray the costs of this project.

The PPEL fund is supported through local property taxes at a rate of $1.67.  This rate is calculated through the combination of a board approved levy (.33), and a voter approved levy ($1.34).  In our current fiscal year, we expect to collect approximately $277,624 in our PPEL fund.  The voter approved levy is scheduled for voter re-authorization in 2014.  The LOSST fund is supported through collection of the 1 cent sales and service tax.  During this fiscal year, we expect to collect approximately $535,690.22 in sales tax revenue.  In all, we expect revenue in our building funds (PPEL and LOSST) to exceed $810,000. 

When we specifically talk about the 1 cent money, the voters of the Hudson Community School District have the opportunity to decide how those funds are going to be spent, which becomes the purpose of today's post.  This is decided through what is commonly referred to as a Revenue Purpose Statement.  The Revenue Purpose Statement is just that, a statement, or letter of intend to the voters of the Hudson Community School District, on how the school district intends to invest the 1 cent penny tax back into the Hudson Community School District.  On September 13th when you cast your vote for school board members, you will have the opportunity to case a vote for the renewal of our Revenue Purpose Statement.  We think it is important for you to know that the current Revenue Purpose Statement doesn't expire until 2019.  Because of that you may be wondering why we are putting a question on the ballot at this time.  Well, there are several reasons for doing this, but the main reason is to align our Revenue Purpose Statement with the most current legal language.  Here are some specifics:

1. The penny sales tax is now a statewide sales tax and not county by county. 
2. The statewide sales tax expires in 2029; in Hudson our Revenue Purpose Statement is set to expire in 2019.
3. The name of the fund is no longer called LOSST; but now is referred to as SAVE (Secure an Advanced Vision for Education fund).

Although it may not look like much, almost $50,000 was
invested in the drainage around the high school over the
summer as we make preparations for paving the high school
parking lot next summer.

PPEL or LOSST funds.  Without this Revenue Purpose Statement, we would not be able to fund these project, or many of the other projects that we have undertaken this past school year. 

Updating computers and other technology hardware is
a never ending venture!  Over the course of this past summer
we invested over $100,000 in computer replacement, including
the addition of a new computer lab in the elementary school.

These funds are pretty important, not only for projects like the ones that have been described in this post, but also when dealing with the unexpected.  I am no longer surprised when a piece of equipment breaks down and we need to get it fixed immediately.  One quick example I can share with you is some ongoing maintenance issues with the cooling tower at the high school.  It doesn't take long to spend $20,000 to $25,000 when a heating pump or cooling tower fails.  While these items can be covered as a general fund expenses, it can have the unintended consequence of significantly eroding the general fund and depleting the unspent balance of a school district.  With repairs like this, it wouldn't take very long at all to put the district into a much more difficult financial position.  This is exactly the kind of contingency that our Revenue Purpose Statement is designed to address.  Not only is it enabling us to plan for future improvements like parking lot upgrades, or paying off bonds for our high school (which has the effect of a lower tax rate); it also enables us to respond to unplanned emergencies, like a boiler going out or a water leak!

As you consider the merits of the proposed Revenue Purpose Statement, you may have questions.  Please feel free to contact my office at any time.  You may also be wondering if the Revenue Purpose Statement is a tax increase.  The answer to that is an unequivocal no!  This question is simply deciding how we will allocate the funds that we will generate through the one cent sales tax.

Please remember to vote on September 13.

Meet the School Board Candidates

September 13th is an important day for the Hudson Community School District, because on that day we will elect two new members to the Board of Directors. Long time Board Members Maureen Hanson and Trent Goodnight have decided not seek re-election.  Tanya Higgins and Karyn Finn have filed paperwork for the election, and we thought it would be a good idea for you to learn a little more about them. I had the opportunity to have lunch with both candidates yesterday and get to know them better.  You will be impressed with the passion they share for education and the enthusiasm they have for board service.  To help you learn more about our candiates, I posed a few general questions to each of them. 

Tanya Higgins

Where did you grow up, go to school, college, and where do you work?  I grew up in northeast Ohio, a small town called North Jackson.  My husband also grew up in this town and our family still lives there.  I attended Ursuline High School in Youngstown, Ohio.  It was a parochial high school and afforded me the opportunity to take honors classes.  My undergraduate was completed at Youngstown State University with a degree in Materials Engineering.  I graduated Cum Laude.  My Master's degree was completed at University of Wisconsin, Madison and is a Master of Engineering, Professional Practice.  Upon graduation from Youngstown State University, I worked in a manufacturing facility in Ohio and a steel mill in Kentucky before joining Johne Deere, where I have worked for the last 10 years.  I am the A&T Division Quality Deployment Manager for North America, Australia, and New Zealand.

Tell us about your family. 
My husband and I have been married for 17 years.  We have 2 daughters, Peyton (10th grade) and Reese (7th grade).  At school, our daughters are involved in academic clubs, athletics, and the arts.  Outside of school, they are both accomplished riders and show horses in the hunter/jumper discipline.  The rest of our family still lives in northeast Ohio.

What drew you to board service? 
Honestly, there was a need.  I have children in the school district and have always been involved in their activities and in their education.  I have a great amount of respect for our past board members.  It is not an easy job and sometimes difficult decisions have to be made, especially in today's environment.

What do you believe is the greatest challenge facing education in Iowa? 
The report released this summer by the Iowa Department of Education detailing the overall decline in Iowa academic achievement scores from 1992-2009 in math and reading is very concerning.  Other states and countries are passing us up which will ultimately limit the opportunities available to our students.

What do you believe is the greatest challenge facing education in Hudson? 
Given the status of the economy today, we must be more creative in how we use all of the resources available to us so that our students are fully prepared to be globally competitive.

What do you hope to accomplish by serving on the Boad? 
I hope to find a way to continue the great traditions and reputation that the Hudson School District has and to strengthen the learning environment to give our children an advantage when entering college and the job market.  Personally, I hope to further develop my leadership skills and strengthen the community where I live.

Karyn Finn

Where did you grow up, go to school, college, and where do you work? 
I grew up in Metairie, Louisiana just 5 blocks from the parish line of New Orleans “The Big Easy”. I attended parochial school from K-8^th  grade. Yes, uniforms and tradition like you wouldn’t believe. I attended Archbishop Chapelle High School, an all-girls school (1200 total students), in a class of 300 still in plaid skirt & white shirt uniforms. Chapelle HS was then and continues to be a model of educational excellence, focused on preparing confident young women for the future.  College preparation was a very important part of the program and I have to admit I was well prepared for entry into college without taking any college classes in HS.   I earned my Bachelor of Science in Physical Education-Athletic Training from Tulane University in New Orleans, LA.  I also earned an Associate of Applied Science in Surgical Technology from Kirkwood Community College. This Fall 2011 I will add to that a Master of Arts in Community Health Education.   My Grandfather who was an immigrant from Mexico in the late 1920’s always said “get an education; it is something that can open doors and can never be taken away”. It was a true statement then and is especially true now in preparing our children for the future: forward-thinking innovative education will be the key.

Tell us about your family. 
Our family moved to Hudson 12 years ago due to work at UNI and since then Hudson has grown on us in ways that I would never have imagined. I have to admit that those first couple of years I wondered if we shouldn’t be in one of the bigger towns to the north but could never justify leaving the hidden benefits of living in a small town with access.  Needless to say, we stayed and have enjoyed raising our three children, Juliann, Ryan and Carmen in Hudson. Kevin, my husband, is a professor at UNI in Exercise Science. I was a part-time instructor for UNI Kindergym for 10 years and also worked at Covenant Medical Center in Surgical Services for 7 years.

What drew you to board service?
After the challenging events of last year in meeting budgets and providing continued excellence in academics for the students of Hudson I thought that there is no better time to get off the sidelines and get into the game than now. In July I considered greater involvement in the community especially in education. I spoke with current and previous school board members to get a better feel for the obligations and expectations of the role.  I was pleasantly surprised at the enthusiasm and support that I received during these discussions.  Since that time I walked the neighborhoods in Hudson to get the petition signatures needed from community members; some with children in the district and many with grown children that were educated in Hudson.  It was an interesting few days during which I gained a new respect for community service.  The opportunity to listen to concerns and ideas from across generations is at the same time overwhelming and inspiring.  The Hudson people are passionate and steadfast with pride in the community. I am glad to count myself among the citizens with pride in Hudson, IA.  The challenges continue and it is in the best interest of the community to have a school that continues to have a great reputation in providing excellence in education and activities that prepare students for future opportunities locally and globally.

What do you believe is the greatest challenge facing education in Iowa?
The greatest challenge for education in Iowa is to be caught resting on the laurels of past performance and reputation without adapting the vision to be a leader in cutting-edge educational preparation for future job skills both locally and abroad. 

What do you believe is the greatest challenge facing education in Hudson?
The greatest challenge for Hudson is how to prepare our youth with an eye toward an ever changing world.  I tell my kids all the time that the world is bigger than your own backyard.  Hudson has had a great reputation for excellence in education but we need to continue to press forward with a unified vision.  We need to look beyond enrollment and budgets by tapping into our community talent pool during this financially challenging time.  By more effectively utilizing our citizen assets and building partnerships to capitalize on available resources, I have great confidence that we will prevail. Hudson will become a stronger school and community that will attract more families to our town, just as our family was drawn here 12 years ago.