School Algorithm
For more information about the school algorithm
view the short video, “School Algorithm”. The fiscal indicator scoring system is an
algorithm that assigns a numeric score (0-10) identifying the fiscal distress or
fiscal health of a school district. Ten factors have been identified to measure
a particular area of school finances. A score of 1 or 0 is assigned to each of
the factors. Adding the individual factor scores calculates the overall score
for the district. In order to determine whether an individual factor is given a
1 or 0, a trigger
is established for each factor.
Replicating the municipal system, the scores are grouped
into three categories:
• 0 – 4
are districts in various degrees of fiscal health (color coded in shades of
green)
• 5 – 6
are districts that are approaching fiscal distress (color coded in shades of
blue)
• 7 – 10
are districts in various stages of fiscal distress (color coded in shades of
red)
The ten individual factors used to calculate an overall
score fall into four groups:
•
Enrollment (measures percent change from prior year for three years)
maximum score of 3
•
General Fund
Deficit (measures the spending habits of the district over three years) maximum
score of 3
• Size
of Fund Balance (scores 0 – 3 points depending on the size of the fund balance)
maximum score of 3
•
Foundation Allowance (measures change from prior year) maximum score of
1
Some factors measure a chronic problem like enrollment. In
these cases the factor is measured over three years. Other factors measure the
magnitude of the problem like General Fund Balance. A school district will be
penalized for having a small or negative balance in the General Fund; the
smaller the balance the more severe the penalty (up to 3 for a negative
balance).