THE SCHOOL DISTRICT OF PALM BEACH COUNTY, FLORIDA

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1 THE SCHOOL DISTRICT OF PALM BEACH COUNTY, FLORIDA EXECUTIVE SUMMARY OF THE BUDGET (ALL FUNDS) SUBMITTED FOR FINAL ADOPTION Arthur C. Johnson, Ph.D., Superintendent September 9, 2009

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3 THE SCHOOL DISTRICT OF PALM BEACH COUNTY, FLORIDA GENERAL FUND OPERATING BUDGET BOARD MEMBERS William G. Graham, Chairman Dr. Sandra S. Richmond, Vice Chairman Frank A. Barbieri, Jr., Esq. Monroe Benaim, M.D. Paulette Burdick Carrie Hill Debra L. Robinson, M.D. ISSUED BY Arthur C. Johnson, Ph.D., Superintendent Jeffrey Hernandez, Chief Academic Officer Joseph M. Moore, Chief Operating Officer Ann Killets, Chief of Staff Michael J. Burke, Chief Financial Officer PREPARED BY Shirley M. Knox, Director of Budget Services SEPTEMBER 9, 2009

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5 THE SCHOOL DISTRICT OF PALM BEACH COUNTY, FLORIDA SUPERINTENDENT S OFFICE 3340 FOREST HILL BOULEVARD, C-316 WEST PALM BEACH, FL (561) FAX: (561) ARTHUR C. JOHNSON, Ph.D. SUPERINTENDENT WILLIAM G. GRAHAM CHAIRMAN DR. SANDRA S. RICHMOND VICE CHAIRMAN FRANK A. BARBIERI, JR, ESQ. PAULETTE BURDICK MONROE BENAIM, M.D. CARRIE HILL DEBRA L. ROBINSON, M.D. September 9, 2009 William G. Graham, Chairman and Members of the School Board of Palm Beach County 3340 Forest Hill Boulevard, Suite C-316 West Palm Beach, Florida Dear Mr. Graham and Members of the Board: Submitted for your consideration and adoption are the tentative budget for the School District of Palm Beach County and millage for Academic Achievement The School District once again earned an A grade for The District is the only urban school district in Florida to achieve an A grade for five years. Additionally, eighty-six percent of our schools achieved an A or B grade and ninety five percent achieved an A, B or C grade. These results once again reflect the continued commitment and effort of all staff to provide quality education to all students. FY 2009 Funding Reductions As predicted at the beginning of FY 2009, the original funding allocated by the legislature did not hold. FY 2009 was a year of continued declining state sales tax revenues and property tax values. As a result, the District s general fund revenues were reduced $24.3 mil. subsequent to final adoption of the budget in September. The mid-year reduction came on the heels of successive budget reductions beginning with fiscal year Anticipating the funding reduction, the District placed a hold on non-instructional hiring. This enabled the District to reduce the size of its workforce through attrition, rather than layoffs. Remaining employees have been redirected in some instances to meet student needs. Reserves were utilized as well, to maintain a balanced budget. FY 2010 Funding Changes Florida Education Finance Program Funding (FEFP) FEFP funding is flat for FY State Fiscal Stabilization Funding (SFSF) allowed the Legislature to maintain current funding for education. SFSF funding is now 5% of the FEFP funding formula. Since the funding is part of the American Recovery and Reinvestment Act, (ARRA), the funds must be treated as Special Revenue and are not reflected in the General Fund budget. To maintain full transparency for the use of these funds, general fund budget items totaling $60.9 mil. have been moved to the special revenue budget. Palm Beach County Schools - Rated A by the Florida Department of Education , 2006, 2007, 2008 and 2009 EQUAL OPPORTUNITY EMPLOYER

6 Mr. Graham Page Two September 9, 2009 Florida Education Finance Program Funding (FEFP) (continued) Following is an itemization of funding sources for the Statewide FEFP Public School budget and the District s portion of FEFP: Statewide Palm Beach FEFP Revenue Source Revenues Percent Revenues Percent State Fiscal Stabilization $ 907,920,175 5% $ 60,872,023 5% State Funding 8,078,683,948 45% 260,765,568 22% Local Effort (property taxes) 8,938,410,657 50% 871,023,414 73% Total K-12 Funding $ 17,925,014, % $ 1,192,661, % As in past years, Palm Beach County property taxes heavily support the FEFP funding formula. American Recovery and Reinvestment Act (ARRA) In addition to the State Stabilization funding received through the FEFP funding formula, the District is also receiving Title I and IDEA Targeted Stimulus funding. The district will receive $28 mil. and $42 mil., respectively, over the next two years. The infusion of this funding, along with the State Stabilization funds, has allowed the District to maintain instructional support, in the face of what would otherwise have been significant budget reductions. Plans are underway to make sure the district does not experience a funding cliff when the stimulus funding rolls off in two years. Revenue Outlook In recent months, sales tax collections have met the projections of state economists. The current expectation is that collections will not recover to 2006 levels within the three year forecast horizon. If the projections hold, then revenues for FY 2010 will remain at current levels. If state sales tax revenues decline further, however, the District may be faced with another mid-year reduction in FY Budget Changes for FY 2010 The FY 2009 mid-year budget reduction caused the district to reduce budget items that translated to a reduction in fund balance at the end of the year. This was done to avoid reducing staff and classroom support mid-year. As a result, $29 mil. of reductions are incorporated into the FY 2010 budget. To achieve this reduction, class size was raised at each level because class size compliance will be at the school level again for FY The district had been very proactive in reducing class size and is able to back off slightly for FY 2010 and still maintain compliance. Class size in K-3, 4-8 and 9-12 is being raised from 17, 21 and 23.5 to 18, 22 and 25, respectively.

7 Mr. Graham Page Three September 9, 2009 Property Taxes The property tax roll for Palm Beach County decreased 11.17%, or $18.9 billion, lowering the taxable value from $168.2 billion to $149.5 billion. This decrease follows a 1.17% decline for FY 2009 and increases in the years prior to FY The decline in taxable value places pressure on the state funding mechanism because the FEFP relies heavily on property tax revenues. The Required Local Effort (RLE) millage rate comprises the majority of millage assessed and is set by the Legislature. The RLE is increasing from mills in FY 2009 to mills for FY The increased millage, however, is still less than the rolled back rate. The rolled back rate is the calculated millage which would generate the same tax proceeds as generated for FY The millage structure has undergone substantial change for FY 2010: State Required Local Effort Added to the normal Required Local Effort (RLE), mills, is a Prior Year Required Local Effort,.044 mills. The Prior Year RLE is imposed for school districts that experienced a recalculation of their tax roll during FY 2009, and as a consequence, received less funding from the state. The proceeds of the RLE and Prior Year RLE will generate an estimated $772.5 mil. and $6.2 mil., respectively, for FY Local Millage Components Local discretionary operating millage authority was raised from.498 mills in FY 2009 to.748 mills in FY Within this levy, districts may elect to move up to.25 mills to capital funding. The proposed tentative budget exercises the option to move.098 mills to the capital budget. Additional discretionary millage of 0.25 mills, up to a maximum of $100 per student, has been discontinued by the Legislature for FY The FY 2009 millage rate for the District was mills. Capital Outlay millage has been further reduced from 1.75 mills to 1.50 mills. The legislature added a.25 mill allowance for critical needs. Imposing the critical needs millage requires a super majority vote of the Board. It may be used for either operating or capital needs, but may not be split. The tentative budget proposes utilizing the.25 mills for capital critical needs, replacing the lost.25 mills. The combined millage totals mills and will generate an estimated $1.1 billion in revenue for the FY 2010 operating and capital budgets. General Fund Operating Budget The FY 2010 tentative general fund budget is $1.4 billion. The total proposed general fund budget is 6.2% less than last year s budget. This percentage decrease reflects the proposed FY 2010 budget as compared to the FY 2009 year-end budget, including transfers and reserves. The decrease in projected budget is attributed to falling revenues and reporting requirements that place State Fiscal Stabilization Funding in the Special Revenue fund.

8 Mr. Graham Page Four September 9, 2009 CTA Contract As of the writing of this letter, the CTA contract for school year is under negotiation. Capital Fund Budget The tentative capital projects budget for FY 2010 is $1.0 billion. Capital projects revenue is comprised of existing fund balance of $637 million and $366 million of new funding. New funding is primarily derived from millage, $262 mil., and sales tax revenue, $91 mil., from the ½ cent sales tax approved by voters in November For the second year in a row, the FY 2010 capital budget is declining, this time by $346 million. The decline is due to the 11.17% decline in the tax roll and the legislative reduction of the capital millage levy from 1.75 mills to 1.50 mills. The new millage options, however, allow the district to levy an additional.25 mills for critical needs and may split the operating discretionary.25 mills between operating and capital. The tentative budget proposes a total capital millage of mills. The reduction of property tax revenue also reduces the district s capacity to issue debt, i.e., Certificates of Participation (COP). Projected revenues over the next five years have been reduced by $397 million from earlier estimates. There are no plans to issue COPs in the current five year plan. The district continues to review and revise the five year capital plan, to meet the debt service, maintenance, technology, school and equipment needs of the district. The tentative district budget has been prepared in accordance with the School Board mission, goals, and key results. All decision making involved with the preparation of the tentative budget has centered on targeting our scarce resources to support the highest needs of our students. Sincerely, Arthur C. Johnson, Ph.D. Superintendent

9 The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the School District of Palm Beach County, Florida for its annual budget for the fiscal year beginning July 1, In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.

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11 SCHOOL BOARD MEMBERS District 1: Mr. Monroe Benaim, M.D Year Elected: 2002 Term Expires: November 2012 District 2: Mrs. Paulette Burdick Year Elected: 1996 Term Expires: November 2012 District 3: Mr. William G. Graham, Chairman Year Elected: 1986 Term Expires: November 2010 District 4: Mrs. Carrie Hill Year Elected: 2008 Term Expires: November 2010 District 5: Mr. Frank A. Barbieri, Jr., Esq. Year Elected: 2008 Term Expires: November 2012 District 6: Dr. Sandra S. Richmond, Vice Chair Year Elected: 1988 Term Expires: November 2010 District 7: Mrs. Debra L. Robinson, M.D. Year Elected: 2000 Term Expires: November 2010

12 Vision Public Education is the genius of our democracy. - Arthur C. Johnson, Ph.D. Board Mission The School Board of Palm Beach County is committed to excellence in education and preparation of all our students with the knowledge, skills, and ethics required for responsible citizenship and productive employment.

13 SCHOOL DISTRICT OF PALM BEACH COUNTY GOALS Adopted on May 5, INCREASED LITERACY Increase literacy in reading, writing, and mathematics, for all students, including students in Exceptional Student Education and English for Speakers of Other Languages, with an emphasis on grades K STUDENT PERFORMANCE Improve achievement of critically low-performing schools and among Quartile One students district-wide. 3. SCHOOL SAFETY AND ENVIRONMENT Provide safe and nurturing school environments that are free of drugs, alcohol, firearms, and harassment, and where standards of appropriate and ethical behavior are upheld. 4. CHALLENGING CURRICULUM Implement a challenging curriculum, including methods for individualized and group instruction that support the Board s goals. 5. STAFF DEVELOPMENT Provide continuous staff development to support the mission and goals. 6. FINANCIAL RESPONSIBILITY Institutionalize and correct, as needed, financial and management practices that are sound and accountable. 7. PARENTAL INVOLVEMENT Increase involvement by parents, business and other community interests through partnerships designed to achieve both management and academic improvement and accountability. 8. PRODUCTIVE CITIZENSHIP Provide experiences that prepare students for productive citizenship.

14 SCHOOL DISTRICT OF PALM BEACH COUNTY KEY RESULTS Revised October 4, K-2 LITERACY All students of each racial/ethnic group will read independently on grade level by the end of second grade. 2. ALGEBRA I All students of each racial/ethnic group will successfully complete Algebra I prior to tenth grade. 3. PROFICIENCY IN READING, WRITING AND MATH All students of each racial/ethnic group will be proficient in mathematics, reading, and writing as measured by FCAT and FCAT Writes. 4. SCHOOL GRADE CRITERIA All schools will meet or exceed a school grade of B as measured by the Florida accountability system. 5. UPPER-LEVEL MATH AND SCIENCE COURSES All schools will increase enrollment and performance of each racial/ethnic group in upper level mathematics and science courses, with a particular emphasis on underrepresented populations. 6. SAT All schools will increase participation and performance of students of each racial/ethnic group taking the SAT, with a particular emphasis on underrepresented populations. 7. ADVANCED PROGRAMS All schools will increase enrollment and performance of each racial/ethnic group in gifted, honors, advanced placement, IB and other advanced programs, with a particular emphasis on underrepresented populations. 8. DROPOUT AND GRADUATION RATES All schools will decrease dropout rates and increase graduation rates for students of each racial/ethnic group. 9. SUSPENSIONS All schools will reduce suspensions and eliminate disproportionate suspension rates among student groups. 10. RESOURCES All district and system offices will align efforts and resources to accomplish Key Results.

15 District Overview The School District of Palm Beach County, Florida serves the student population of Palm Beach County, in southeast Florida. Palm Beach County covers a geographical area of over 2,300 square miles and is home to over 1.2 million people. Geographically one of the largest counties in Florida, its communities are diverse, encompassing urban, suburban and rural communities. As the 5 th largest school district in Florida and the 11 th largest in the nation, the School District is expected to serve approximately 168,456 students during the school year. The School District operates 181 schools: 107 elementary, 33 middle, 23 high, 1 K-12 school, 15 alternative schools and 2 special education centers. The District also runs a Florida Virtual School franchise as well as its own virtual school. There are 33 charter schools in Palm Beach County, which utilize public education funds and are run by independent boards. The School District serves a diverse student population. Over 148 languages and dialects are spoken by our students. The District serves over 35,276 students with special learning needs. Over 48% of our students participate in the national free and reduced lunch program. In 1999, the State of Florida instituted the Florida Comprehensive Assessment Test (FCAT) to evaluate education in public schools and improve school accountability. For school year , 115 of Palm Beach County s schools earned A s and 25 schools earned B s. Additionally, the School District of Palm Beach County earned an A rating from the Florida Department of Education, the only school district to earn that distinction five years in a row. The District has 697 National Board Certified teachers making it the 5 th highest in the nation. Over 36% of our teachers have master s, specialist and doctorate degrees. Our teacher salaries, ranging from $36,822 to $71,245, are among the highest in Florida. In addition to K-12 education, the District is a vital community resource. After-School Child Care and Enrichment Programs are offered at 96 of our schools. Summer Camps are provided in over 40 school sites. We also offer adult and community education classes fat 27 schools and one virtual community school. Many of our school sites are leased to community organizations, for after-hour activities. Schools are also used as voting polls and hurricane shelters.

16 Guide to the Budget Budget The total budget for all funds for is $2.7 billion. This includes a General Fund operating budget of $1.4 billion and a Capital Projects budget of $1.0 billion. The General Fund is used to budget for the majority of the District s daily operations. Revenues for the General Fund are derived from State allocation and local property tax levies. The Capital Fund is used to record the cost of new and remodeled schools and maintenance of buildings and equipment. The revenue source is property tax levies, local sales tax and state financing sources. Other funds utilized by the District are: Debt Service, Special Revenue-ARRA, Special Revenue-Other, Special Revenue-Food Service and Internal Service Fund. The Debt Service fund budget for is $265.0 million. Revenue for the Debt Service Fund consists of transfers from the Capital Fund and state and local sources. The Debt Service Fund is used to pay the principal and interest due on financial obligations incurred to carry out Capital Fund activities. Special Revenue-American Recovery and Reinvestment Act (ARRA) funds are new for FY Enacted by Congress, the funding has the dual purpose of improving the quality of education and preserving jobs. The two year allocation for ARRA funds is $132.3 million. Separate funds have been set up to ensure transparency of reporting for public review. Special Revenue-Other Funds account for non-arra grants received from Federal, State and Local sources. The largest grants are the Title grants from the Federal government, such as Titles I, II, and V, and the IDEA grants. The budget is currently $110.0 million and will grow throughout the year, as new grants are received. The Special Revenue-Food Service Fund tracks food service operations at schools. The National School Lunch Program, provided by the Federal government, and student lunch fees, provide the school lunch program. The budget is $83.7 million, up from $80.8 million in Internal Service Funds, which is not included in the district budget totals, account for the District s health selfinsurance and the maintenance operation of the School District. The self-insurance fund records premium revenues and claim costs. Maintenance fund expenditures are charged to the General Fund or Capital Fund, as appropriate. The budget is $197.0 million. Revenue Sources for Operating Expenses State Revenue Funds for state support to school districts are provided primarily by legislative appropriations. The major portion of state support is distributed under the provisions of the Florida Education Finance Program (FEFP). State funds appropriated to finance the FEFP in statewide total $5.1 billion for student enrollment associated with the 180 day regular school year and students in juvenile justice programs during the summer.

17 Guide to the Budget For , State Stabilization funding, provided to the state of Florida through the American Recovery and Reinvestment Act funding, is included as a funding source in the FEFP calculation. Statewide, $907.9 million is used to fund K-12 education. A separate appropriation of $420.3 million is allocated for Workforce Development funds adult vocational and adult general education. While a number of tax sources are deposited in the State s General Revenue Fund, the predominant tax source is the state sales tax. Statewide, proceeds from the Florida Lottery are used to finance the School Recognition Program in the amount of $129.9 million. This amount represents an $82.8 million drop in lottery allocation to K-12 education, compared to Prior to , school districts were also allocated discretionary lottery funds. The state also allocates funding $2.8 billion to meet class size reduction requirements. Each district s share of the State allocation is primarily determined by enrollment and the base student allocation amount. Revenue Sources for Operating Expenses Local Revenue Local revenue for school support is derived almost entirely from property taxes. Each of the 67 school districts in the state is a countywide district. Each school board participating in the state allocation of funds for current operation of schools must levy the required local effort millage rate set by the State. The Legislature set the amount of $7.8 billion as required local effort for Each district s share of required local effort is determined by a statutory procedure initiated by certification of district property tax valuations by the Department of Revenue. Certification occurs no later than two working days prior to July 18. Then, not later than July 18, the Commissioner of Education certifies each district s required local effort millage rate. These rates are determined by dividing the dollar amount of required local effort by 95 percent of the aggregate taxable value for each district. Certifications vary due to the use of assessment ratios designed to equalize the effort on the FEFP of differing levels of property appraisal in the counties. Millage rates are also adjusted, if necessary, to insure that required local effort does not exceed 90 percent of a district s total FEFP entitlement. Revenue for Capital Outlay and Maintenance Schools boards may levy up to mills, for new construction and remodeling, equipment, vehicles and maintenance. This millage rate is down from mills in Discretionary Millage For , the Legislature authorized an increase in the discretionary millage to allow districts to levy an amount up to mills. This millage may be allocated for either operating or capital usage. The district

18 Guide to the Budget is splitting the millage as follows: mills for operating and.098 mills for capital. The FY 2010 FEFP calculation for the School District of Palm Beach County is shown on page 77 in the General Fund section. FEFP revenue for Palm Beach County is up $1.1 million compared to year-end A complete summary of general fund sources is displayed on page 78. Critical Needs Millage The Legislature authorized an additional mills for critical needs for The critical needs millage levy must have a super majority vote and by law, may be used for operating or capital critical needs. School boards may levy the critical needs millage for two years but then must secure voter approval through a general election, to continue levying the millage. As a nonrecurring revenue source, the Board is allocating the mills to capital for one time capital projects. Basis of Budgeting The Financial and Program Cost Accounting and Reporting for Florida Schools manual has established a modified accrual basis as the standard for governmental fund budgeting and reporting. All Florida school districts must adhere to this basis. An encumbrance system is used in this basis which charges each purchase order, salary commitment, or other expenditure to a particular appropriation (function/object). These transactions are no longer encumbrances when paid, canceled, or when the actual liability is recorded. Budgetary control is maintained at the function/object level. Each principal and department head is responsible for their respective budget. No expenditures are authorized that are in excess of budgetary appropriations. As with any projection, however, changes to appropriations are necessary in order to meet critical needs as they are identified. Therefore, budget amendments are prepared on a monthly basis and submitted to the School Board for approval. This allows the best use of limited resources. All funds are adopted by the School Board in September and amendments are made to all funds throughout the year. General Fund, Special Revenue (Other) and Capital Projects Funds amendments are submitted to the School Board detailing changes in revenue and appropriations. Other funds such as Debt Service are revised during the year if a substantial change occurs. Final amendments to each fund are prepared at year-end to complete the budgetary cycle. Basis of Accounting The modified accrual basis of accounting is utilized for all funds except the proprietary funds. This means that revenues are recognized in the accounting period in which they become both measurable and available. Measurable means the transaction amount can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Significant revenues susceptible to accrual include ad valorem taxes, reimbursable-type grants and interest on investments. Expenditures are recorded when the fund liability is incurred.

19 Guide to the Budget However, exceptions include the amount of unmatured principal and interest on general long-term debt, which is recognized when the principal and interest are due. In applying the susceptible to accrual concept to revenues from federal and state sources, the legal contractual requirements of the numerous individual programs are used as guidance. There are, however, essentially two types of these revenues. In one, monies must be expended for the specific purpose or project before any amounts will be received by the School District; therefore, revenues are recognized based upon the incurrence of the expenditures. In the other, monies are virtually unrestricted as to purpose of expenditure and are usually revocable only for failure to comply with prescribed legal and contractual requirements. These resources are reflected as revenues at the time of receipt or earlier if the susceptible to accrual criteria are met. In all cases, monies received before the revenue recognition criteria have been met, are reported as deferred revenue. The accrual basis of accounting is utilized for proprietary funds. Revenues are recognized when earned, and expenses are recognized when incurred. Currently, the District s only proprietary fund is the Internal Service Fund. The Internal Service Fund records the District s health self insurance revenues and expenses and the District s maintenance expenses.

20 Guide to the Budget Fund Structure The accounts of the District are organized on the basis of funds and account groups. The individual funds account for the governmental resources allocated for the purpose of carrying out specific activities in accordance with state and federal requirements. The funds used by the District are grouped into two broad fund types and five generic funds as follows: Governmental Funds: These funds are used to account for the educational programs and activities of the District. General Fund: The general fund serves as the primary operating fund of the District. It accounts for all financial resources except those required to be accounted for in other funds. The primary source of funding is the Florida Education Finance Program. Special Revenue Funds: These funds are utilized to account for specific revenue proceeds, other than major capital projects, which are legally restricted or committed to expenditures for specific purposes. Federal, state and local grants are placed in this fund. School Food Service is reported separately from other special revenue funds. Special Revenue American Recovery & Reinvestment Act (ARRA): Special revenue ARRA funds account for revenue received under the American Recovery & Reinvestment Act. These funds are designated to achieve equity in teacher distribution and quality, enhance academic standards and assessments, improve the collection and use of data, support struggling schools and mitigate job loss. Debt Service Funds: The debt service funds accumulate resources to pay the interest and principal obligations associated with long-term debt. Capital Projects Funds: These funds account for financial resources used for the acquisition and construction of facilities and equipment. Internal Service Fund: This fund is used to account for health selfinsurance as well as any activity that provides goods or services to other funds or departments of the governmental unit. The self-insurance fund records premium revenues and claim costs. Maintenance expenditures are expensed in this fund before being charged to the general and capital funds on a cost reimbursement basis.

21 COMPARISON OF BUDGET - ALL FUNDS TO Comparison of All Funds $1,600,000,000 $1,400,000,000 $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $0 General Fund Spec Rev - Food Spec Rev - Other Special Rev - ARRA Debt Service Capital Projects Revised Tentative % Increase/ Increase Fund Titles Budgets Budgets (Decrease) (Decrease) General Fund $ 1,468,736,661 $1,376,925,796 ($91,810,865) (6.25%) Special Revenue - Food Service 80,790,945 83,657,360 2,866, % Special Revenue - Other * 146,455, ,928,866 (36,526,883) (24.94%) Special Revenue - ARRA 132,346, ,346,287 Debt Service 264,627, ,045, , % Capital Projects 1,349,448,777 1,002,521,417 (346,927,361) (25.71%) Sub-Total $3,310,059,943 $2,970,424,941 ($339,635,002) Less Transfers: (216,102,482) (231,357,064) (15,254,582) 7.06% TOTAL ALL FUNDS $3,093,957,461 $2,739,067,877 ($354,889,584) (11.47%) *Not all Federal and State funds have been received. It is anticipated the FY2010 revenue will be similar to FY2009. Pg 10 All funds bar chart FY10.xlsx

22 THE SCHOOL DISTRICT OF PALM BEACH COUNTY, FLORIDA PROPOSED DISTRICT BUDGET - FISCAL YEAR 2010 SUMMARY OF ALL FUNDS ESTIMATED REVENUES GENERAL SPECIAL REVENUES FUND REVENUE Federal $ 4,399,000 $ 278,497,989 State Sources 274,100,166 1,041,110 Local Sources 926,658,267 26,340,554 TOTAL SOURCES $ 1,205,157,433 $ 305,879,653 Transfers In 79,357,064 Other Financing Nonrevenue Sources: Fund Balances - July 1, ,411,299 20,052,860 TOTAL REVENUE, TRANSFERS & BALANCES 1,376,925, ,932,513 Less Transfers TOTAL REVENUE & BALANCES $ 1,376,925,796 $ 325,932,513 ESTIMATED APPROPRIATIONS APPROPRIATIONS Instruction $ 854,471,910 $ 69,463,330 Pupil Personnel Services 32,868,617 22,902,433 Instructional Media Services 21,513,461 4,348,819 Instruction & Curriculum Services 25,552,405 27,700,567 Instructional Staff Training 13,618,133 62,147,447 Instruction Related Technology 3,228,583 3,817,088 Board of Education 7,989,672 General Administration 7,288,775 5,532,429 School Administration 93,143, ,080 Facilities Acquisition & Construction 923,636 Fiscal Services 6,805,079 33,642 Food Service 65,159,741 Central Services 15,294, ,795 Pupil Transportation Services 36,593,980 8,720,032 Operation of Plant 98,993,841 36,230,729 Maintenance of Plant 66,518,856 9,586 Administrative Technology Services 9,917,911 Community Services 35,700,424 Debt Service 2,132,792 Internal Accounts Expenditures TOTAL APPROPRIATIONS $ 1,332,556,632 $ 307,394,718 Transfers Out Fund Balances - June 30, ,369,164 18,537,795 TOTAL APPROPRIATIONS, TRANSFERS & BALANCES 1,376,925, ,932,513 Less Transfers TOTAL APPROPRIATIONS & BALANCES $ 1,376,925,796 $ 325,932,513

23 DEBT CAPITAL TOTAL SERVICE PROJECTS ALL FUNDS $ 282,896,989 $ 4,669,403 $ 7,360, ,170, ,496,233 1,311,495,053 $ 4,669,403 $ 365,856,247 $ 1,881,562, ,000, ,357,064 85,200 85, ,375, ,579, ,419, ,045,215 1,002,521,417 2,970,424,941 (231,357,064) $ 265,045,215 $ 1,002,521,417 $ 2,739,067,877 $ 923,935,240 55,771,049 25,862,280 53,252,972 75,765,580 7,045,671 7,989,672 12,821,204 94,113,646 $ 771,164, ,087,989 6,838,721 65,159,741 15,653,788 45,314, ,224,570 66,528,442 9,917,911 35,700,424 $ 157,764, ,897,615 $ 157,764,823 $ 771,164,353 $ 2,568,880, ,357, ,357, ,280, ,187, ,045,215 1,002,521,417 2,970,424,941 (231,357,064) $ 265,045,215 $ 1,002,521,417 $ 2,739,067,877

24 THE SCHOOL DISTRICT OF PALM BEACH COUNTY, FLORIDA FY FY 2010 ALL FUNDS REVENUES FY 2008 FY 2009 FY 2010 ACTUAL ACTUAL BUDGET Federal $ 141,081,533 $ 159,995,991 $ 282,896,989 State Sources 494,375, ,288, ,170,693 Local Sources 1,469,969,280 1,385,975,057 1,311,495,053 TOTAL SOURCES $ 2,105,425,962 $ 1,894,259,806 $ 1,881,562,736 Transfers In 211,532, ,104, ,357,064 Other Financing 162,903,803 12,606,223 85,200 Fund Balances, Beginning 885,916, ,876, ,419,941 TOTAL REVENUE, TRANSFERS & BALANCES 3,365,778,438 2,960,847,217 2,970,424,941 Less Transfers (211,532,529) (216,104,381) (231,357,064) TOTAL REVENUE & BALANCES $ 3,154,245,908 $ 2,744,742,835 $ 2,739,067,877 EXPENDITURES Instruction $ 932,482,324 $ 936,120,075 $ 923,935,240 Pupil Personnel Services 56,722,957 55,909,461 55,771,049 Instructional Media Services 19,076,061 18,726,424 25,862,280 Instruction & Curriculum Services 53,270,793 54,684,074 53,252,972 Instructional Staff Training 33,601,035 33,932,692 75,765,580 Instruction Related Technology 4,887,676 4,611,184 7,045,671 Board of Education 8,130,014 5,169,247 7,989,672 General Administration 10,043,169 9,930,439 12,821,204 School Administration 97,181,661 96,097,062 94,113,646 Facilities Acquisition & Construction 574,870, ,126, ,087,989 Fiscal Services 5,874,534 5,828,120 6,838,721 Food Service 60,341,964 60,624,283 65,159,741 Central Services 15,270,657 14,553,638 15,653,788 Pupil Transportation Services 53,477,949 45,582,940 45,314,012 Operation of Plant 134,986, ,868, ,224,570 Maintenance of Plant 50,422,741 46,190,284 66,528,442 Administrative Technology Services 5,513,478 5,450,668 9,917,911 Community Services 30,676,332 29,470,391 35,700,424 Debt Service 177,215, ,650, ,897,615 TOTAL EXPENDITURES $ 2,324,045,722 $ 2,109,525,701 $ 2,568,880,526 Transfers Out 211,532, ,104, ,357,064 Fund Balances, Ending 830,200, ,217, ,187,351 TOTAL EXPENDITURES TRANSFERS & BALANCES 3,365,778,438 2,960,847,217 2,970,424,941 Less Transfers (211,532,529) (216,104,381) (231,357,064) TOTAL EXPENDITURES & BALANCES $ 3,154,245,908 $ 2,744,742,835 $ 2,739,067,877

25 THE SCHOOL DISTRICT OF PALM BEACH COUNTY, FLORIDA FUND BALANCE - FISCAL YEAR 2010 ALL FUNDS Special Revenue General Fund Food Service Other Debt Service Capital Total Beginning Fund Balance $ 92,411,299 $ 20,052,860 $ - $ 108,375,812 $ 636,579,970 $ 857,419,941 + Revenues 1,284,514,497 63,604, ,275, ,669, ,941,447 2,113,005,000 - Appropriations 1,332,556,632 65,119, ,275, ,764,823 1,002,521,417 2,800,237,590 Ending Fund Balance $ 44,369,164 $ 18,537,795 $ - $ 107,280,392 $ - $ 170,187,351 The District does not budget endging fund balances for the General Fund, Special Revenue-Other Funds and Capital Funds, with the exception of the contingency in the General Fund. Revenues and fund balance are fully appropriated to expenditure accounts. If appropriations are fully utilitzed, there would be no undesignated fund balance at year end. However, position vacancies and unspent allocation typically leave $10-36 million in undesignated general fund balance at year end. Actual General Fund balance for FY 2000 through FY 2009 are shown on page 76.

26

27 The Budget Process Fiscal Year The school district fiscal year is July 1 through June 30. Statutory Requirements Palm Beach County School District participates in the Florida Education Finance Program (FEFP) which entitles our district to receive State revenues along with the funds raised by Palm Beach County s property taxes. Florida Statute dictates the budget adoption requirements for participation in the FEFP program. The FY 2010 adoption calendar is detailed on pages 19 and 20. The District advertised the tentative budget and millage rates, and held the first public hearing on July 29, This meeting provided the opportunity for public input to the budget process and for the School Board to approve the 2009 millage rates and approve the tentative budget. The Department of Revenue sets forth very specific budget advertising and adoption requirements which4 are reflected in the agenda items presented. The second and final public hearing is held on September 9, 2009 for the purpose of allowing the public additional input into the budget, and for the Board to adopt the budget for The documents required for final adoption, including the state reporting document, are shown on pages 31 through 57. The budget process for the current year starts months before the fiscal year begins on July 1. In December of 2008, student enrollment was projected for the school year. An overview of the enrollment projection process is found on page 21. The State Department of Education collects the projections made by each district, the State Legislature formulates the budget, and funds are allocated to the individual school districts based on these projections. Once the revenue for the District is finalized, the budget is advertised and adopted by the Board. Budget Development Local Process The Palm Beach County School District budget is a detailed operating plan which identifies estimated expenditures in relation to estimated revenues. The budget reflects the Board s goals and represents a process through which policy decisions are made, implemented, and controlled. The budget process begins each year shortly after the adoption of the current year s budget in September. First, the School Board Members and the Superintendent develop the district goals and objectives and address budget issues. The Superintendent then establishes a Budget Review Committee, comprised of representative principals, area and district administrators, which meets on a monthly basis from November to May. The committee provides input on the allocation of new revenues or the reallocation of resources, when necessary. Schools and departments prepare their individual budgets based on district allocation formulas and submit them to the Budget Office. The Budget Office then compiles the individual budgets into a district preliminary draft budget. Budget workshops are held with School Board Members and senior District staff to review and adjust the budget document as needed. Two public hearings are then held at which the public voices their opinions on the budget. The budget is adopted at the second public hearing in September.

28 The Budget Process At the start of the school year, school budgets are adjusted to reflect actual student enrollment counts as of the 11 th day. The State recalculates the district revenue based on the revised student Full Time Equivalent (FTE) data in October and February. These adjustments are incorporated into the district s budget amendment process. Budget Amendment Process The budget is continually monitored throughout the year. Amendments to the budget are approved at each monthly Board Meeting, to accurately reflect the District s spending plan as the year progresses. Financial Policies State Statutes Florida Statutes and public law govern the financial operations of all Florida public education institutions. The Superintendent of Schools and his designated staff are responsible for keeping adequate records and accounts of all financial transactions as prescribed by the Commissioner of Education (Financial and Program Cost Accounting and Reporting for Florida Schools, 2001). This manual is incorporated in Rule 6A-1.001, Florida Administrative Code, pursuant to requirements of Section , Florida Statutes. Florida Statute requires an annual budget be prepared by the Superintendent for the School Board, advertised and presented at two public hearings, adopted by the Board, and submitted to the Department of Education. The budget is prepared in accordance with the regulations dictated by the State Board of Education and must include an amount for required local effort revenue, as determined by the legislature. The total budget and each of the component funds must be balanced, i.e., proposed expenditures, plus transfers and balances may not exceed proposed income, transfers and balances. The annual budget must contribute to, and be consistent with, the goals of the District. School Board Policies The Palm Beach County School Board has implemented Policy 2.55 which requires the District to maintain a contingency reserve equal to 3% of total General Fund appropriations and outgoing transfers, to meet unforeseen expenditures. The contingency reserve may be used upon a majority plus one approval vote by the Board. As provided for in Florida Statutes and adopted School Board Policy 6.02, expenditures may temporarily exceed the amount budgeted by function and object. Summary budget amendments, inclusive of revenue and appropriations, are presented to the Board for approval on a monthly basis. Expenditures may not exceed the total budget for any one fund. School Board policy 6.08 sets forth the District s investment policy. The primary objectives, in order of importance, are safety of principal, liquidity and return on investment. The District may only purchase securities from financial institutions which are qualified as public depositories by the Treasurer of the State of Florida, or institutions designated as "primary securities dealers" by the Federal Reserve Bank of New York. Repurchase agreements

29 The Budget Process may be entered into with financial institutions that are state qualified public depositories and primary securities dealers as designated by the Federal Reserve Bank of New York. A competitive bid process must be held prior to the selection of an investment. The policy specifically authorizes and places portfolio limits on the District s investment in The Florida Local Government Surplus Funds Trust Fund (SBA), U.S. Government securities, U.S. Government agencies, U.S. Government sponsored agencies, interest bearing time deposits, repurchase agreements, commercial paper, corporate notes, bankers acceptances, state and local government taxable and tax-exempt debt, and money market mutual funds. The School District s debt management policy establishes guidance for the issuance and management of debt and describes permissible debt, debt limitations and issuance procedures. Specific information on current debt limitations is shown on page 106. School Board Policy requires that the District maintain a Five Year Capital Facilities Plan, of which the first year is adopted with the annual budget. The plan identifies the District s facility needs and the revenue sources needed to fund construction. Long term planning Academic Business Plan The Academic Business Plan is a collaborative effort to coordinate planning, implementation and funding of strategies to achieve the District s goals to educate K-12 students. The three year plan articulates strategies and measurement of results..

30 THE SCHOOL DISTRICT OF PALM BEACH COUNTY, FL BUDGET ADOPTION CALENDAR SCHOOL DISTRICT REQUIREMENTS Ref District Day Date Event Activity Wenesday, School Board Budget Workshop #1 Operating Budget Workshop 4/29/2009 Wednesday, School Board Budget Workshop #2 Capital Budget Workshop 6/3/2009 Wednesday, School Board Budget Workshop #3 Capital Budget Workshop/Millage Levy 7/1/2009 Wednesday, School Board Budget Workshop #4 Capital Budget Workshop/Millage Levy 7/8/2009 Wednesday, School Board Budget Workshop #5 Capital Budget Workshop/Millage Levy 7/22/2009 STATE STATUTORY REQUIREMENTS Ref District Day Date Event Activity D Wednesday, Property Appraiser certifies Roll. July 1 or date of certification, whichever is later. on 7/1/09 7/1/2009 Friday, Receive from the Department of Not later than 7/19/09, the Commissioner of 7/17/2009 Education Required Local Effort. Education shall certify the Required Local Effort. D + 24 Wednesday, Board approval for advertising Superintendent submits tentative district facilities by 7/24/09 7/22/09* Within 24 days of the Certification work plan and district budget to the School Board. of Value. School Board shall adopt Tentative Budget and shall approve Tentative Budget for Advertising. School Superintendent presents tentative Board authorizes Superintendent to adjust the budget and tentative facilities millage and the budget advertisements based upon work plan to the School Board. Department of Education information. The School Board may order adjustment to the tentative budget, but takes no official action. D + 29 Friday, Newspaper advertisement Advertising summary of tentative budget including by 7/29/09 7/24/2009 Within 29 days of the Certification proposed millage rates. Notice of public hearing. of Value Wednesday, Public Hearing The School Board holds public hearing tentative 7/29/09* Not less than 2 nor more than district facilities work plan, tentative budget and 5:05 p.m. 5 days after advertising. proposed millage rates; amends and adopts tentative budget and facilities work plan. D + 35 Friday, Notify Property Appraiser Advise Property Appraiser of proposed millage rate. by 8/4/09 7/31/2009 Within 35 days of Certification This will be used by Property Appraiser to prepare of Value. Notice of Proposed Property Taxes.

31 THE SCHOOL DISTRICT OF PALM BEACH COUNTY, FL BUDGET ADOPTION CALENDAR STATE STATUTORY REQUIREMENTS Ref District Day Date Event Activity Not less Wednesday, Adopt the District Facilities Work Hold public hearing to adopt final facilities work than 9/9/09* Plan and District Budget. plan, final budget and to adopt millage rate. No D :05 p.m. newspaper advertisement is required. not more days after Certification than of Value. Millage rate cannot exceed the rate tentatively D + 80 adopted on D + 35 (7/30/09) unless each taxpayer is between 9/3/09 sent a personal notice of change under the new and 9/18/09 rates. Such notice is prepared by the property Appraiser at School Board expense and should be mailed no more than 15 days nor less than 10 days prior to any hearing. Thursday, Submit Budget to Department of Education within 3 9/10/2009 business days after adoption (Florida State Board of Education - Administrative Rules 6A (1)) D Thursday, Within 101 days of Certification Notify Property Appraiser, Tax Collector and by 10/9/09 9/10/2009 of Value. Department of Revenue of adopted millage rate within 3 days after the adoption of the resolution. *Indicates School Board Public Hearing

32 STUDENT ENROLLMENT FORECAST Virtual School Charter Schools Alternative Education High Schools Middle Schools Elementary Schools 200, , , , , ,000 80,000 60,000 40,000 20, Actual Student Membership Projected Student Membership Grade Level Elementary Schools 75,799 76,304 74,748 74,877 74,654 74,586 73,979 74,109 74,931 76,847 Middle Schools 38,881 38,042 36,657 36,985 37,742 37,365 37,656 37,496 37,889 37,741 High Schools 47,456 47,760 47,821 48,802 48,144 47,826 47,167 47,349 47,418 47,591 Alternative Education 3,274 3,454 4,017 2,242 1,590 1,400 1,390 1,388 1,397 1,396 Virtual School Charter Schools 7,349 7,676 6,772 6,548 7,186 7,424 7,485 7,484 7,546 7,612 TOTAL K , , , , , , , , , ,387 Enrollment Forecasting Methodology Enrollment forecasting requires analysis of multiple factors including, but not limited to: birth trends, historical enrollment trends, demographic composition of neighborhoods, current and planned new residential developments, local and regional housing trends. Additional factors impacting school populations include: the School District s Choice options, which include Career academies, Magnet/Choice programs, Charter schools, No Child Left Behind (NCLB) transfers, McKay Scholarship transfers, English Speakers of Other Languages (ESOL) clusters, and Exceptional Student Education (ESE) assignments including gifted centers and reassignments. Grade level retention guidelines and provisions of the Pupil Progress Plan also impact overall enrollment by grade level (elementary, middle and high). The District demographer annually prepares and updates enrollment forecasts for each of the District schools. The updates are prepared utilizing October FTE enrollment data. A cohort-survival model is employed to generate annual forecasts. This method is a widely applied forecasting model for projecting student enrollment, which has proven to be accurate. The model ages students ahead through grade levels. A survival ratio is typically calculated based upon a three-year enrollment history. This year, due to uncertainties associated with the economic recession and housing market and other factors, several weighted cohort survival models were tested. Weighted models were utilized in the forecast. Data from the Florida Department of Education, Palm Beach County, local governments and the University of Florida s Bureau of Economic Business Research population projections are referenced throughout the development of student enrollment projections. These independent forecasts serve as a test of reasonableness for the aggregate target enrollment numbers. To the extent feasible, target numbers derived from these other forecasts are reconciled with target enrollments generated by the aggregate cohort survival model. Recognizing the uncertainty that surrounds long-term forecasts and to a lesser extent, near horizon projections, the District reviews the enrollment projections annually for adjustments. Demographic shifts are expected in high growth counties like Palm Beach and annual changes in school programs can also generate near-term facility needs. The recent drop in enrollment growth (FY2006) and enrollment declines for three years (FY ), due in part to housing market characteristics and trends, present additional challenges to forecasting. Staff works closely with school principals and local government planners to encourage an on-going exchange of information, which fosters proactive planning rather than reactive problem solving.

33 SCHOOL DISTRICT OF PALM BEACH COUNTY Board Meeting Date: July 22, 2009 Category: New Business Division: Budget Advertisement of the FY2010 Tentative District Budget Description: Section , Florida Statutes, requires each School Board to: 1. Advertise its intent to adopt a tentative budget and millage levy. 2. Hold a public hearing to adopt the tentative budget and proposed millage levy. Attached advertisements: 1. Notice of Budget Hearing 2. Notice of Tax for School Capital Outlay 3. Budget Summary Notice 4. Historical Data Charts Recommendation: I recommend the School Board approve the advertisements of the FY2010 tentative District summary budget, the appropriate tax notices and historical summary data in accordance with Florida Statute Contact: Joseph M. Moore (moorej@palmbeach.k12.fl.us) Michael J. Burke (burkem@palmbeach.k12.fl.us) Financial Impact: The financial impact is estimated at $6,000 to advertise the district budget. The source of funds is the Budget Departmental budget.

34 NOTICE OF BUDGET HEARING The School District of Palm Beach County, Florida will soon consider a budget for FY2010. A public hearing to make a DECISION on the budget and TAXES will be held on July 29, 2009 at 5:05 P.M. at The Winona Webb Jordan Board Chambers of the Fulton-Holland Educational Center 3300 Forest Hill Boulevard West Palm Beach, Florida

35 NOTICE OF TAX FOR SCHOOL CAPITAL OUTLAY The School District of Palm Beach County, Florida will soon consider a measure to impose a mill property tax for the capital outlay projects listed herein. This tax is in addition to the school board s proposed tax of mills for operating expenses and is proposed solely at the discretion of the school board. THE PROPOSED COMBINED SCHOOL BOARD TAX INCREASE FOR BOTH OPERATING EXPENSES AND CAPITAL OUTLAY IS SHOWN IN THE ADJACENT NOTICE. The capital outlay tax will generate approximately $262,371,845 to be used for the following projects: CONSTRUCTION AND REMODELING Academies at Existing Schools, Alternative Schools Master Plan, Atlantic HS Mod, Bak MSOA Auditorium, Bak MSOA Mod, Banyan Creek ES Add, Barton ES Mod, Benoist Farms ES Pre-K, Berkshire ES Mod, Bethune ES Pre-K, Boca Raton HS Add & Academy, Boca Raton HS Mod, Boca Raton HS Stadium, Boca Raton MS Mod, Carver MS Add, Cholee Lake ES Pre-K, Citrus Cove ES Add, CO Taylor ES Mod, Congress MS Mod, DD County Fiber Construction Eisenhower ES Mod, Elbridge Gale ES, Glades Central HS Academy, Hagen Road ES Mod, HL Johnson ES Add, HL Watkins MS Mod, Hope Centennial ES (06-D), Indian Pines ES Add & Pre-K, Indian Ridge Replacement, JC Mitchell ES Mod, JF Kennedy MS Mod, John I Leonard HS Mod, Jupiter ES Bldg Renovation, K-3 CSR Projects, Lake Worth HS Academies, Lake Worth MS Add, Liberty Park ES Add/HVAC, Limestone Creek ES Add, Marsh Pointe ES, Meadow Park ES Mod, N Grade ES Pre-K, Northboro ES Mod, Oak Grove (CEP), Okeeheelee MS Add, Pahokee HS Stadium, Palm Beach Gardens ES Mod, Palm Beach Gardens HS Mod, Palm Beach Lakes HS Add/Academy, Palm Beach Lakes HS Auditorium, Palm Beach Public ES Mod, Palm Springs MS Mod, Panther Run ES Add, Pine Jog ES, Relocatables - Code Compliance, Relocatables - Master Plan, Relocatables - Walkway Canopies, Riviera Beach Area HS (02-MMM), Rolling Green ES Mod, Roosevelt ES Mod, Roosevelt MS Add, Sandpiper Shores CSR Add/HVAC, Santaluces HS Academy, Santaluces HS Auditorium, School Food Service Build Out, South Olive ES Pre-K, Spanish River HS Auditorium, Spanish River HS Biotech Academy, Spanish River HS Teacher Academy, Suncoast HS Mod, Sunset Palm ES, Village Academy Secondary Level, Wellington ES Class Add, Wellington HS Academies, Wellington HS Auditorium, West Area Educational Complex, Westward ES Mod, Wm T Dwyer HS Academy, Wm T Dwyer HS Add, Allamanda ES Mod, CSR Projects, FHESC Windows, Forest Park ES Mod, Boynton Beach HS Academy, Emerald Cove MS, Forest Hill HS Mod, Lincoln ES Pre-K, Olympic Heights HS Teacher Academy, Pahokee Area MS (03-MM), Royal Palm School Mod, Seminole Trails ES Add, West Central Comm. ES (03-W), Whispering Pines ES Add, Whispering Pines ES Core Add, Banyan Creek Core Add, Belle Glade ES Add + Pre-K, Boca Raton HS Pool, Canal Point ES Brick Replacement, Crossroads Academy Modifications, Future School Modernizations, Galaxy ES Mod, Heritage ES LEED EB, JF Kennedy MS Athletic Fields, Maintenance Compound West, Manatee ES Add, N Palm Beach ES Mod, Pahokee El Add, Pahokee HS Remodel, Plumosa ES (K-5) Mod, Sabal Palm School Add, Site Acquisition, Transportation Compound South, Transportation Compound West Central, Village Academy Buildout, Ed Plant Survey & Facility Condition Assessment, Energy Conservation (Green) LEED Projects, Jupiter MS School Renovation, Jupiter MS Add, Lake Worth MS Core Add, LCD Installation Projects, Maintenance Compound West Central, Master Planned Glades School, Roosevelt Full Service Mod, Carver MS Core Add, Crestwood Core Add, Cypress Trails ES Brick Replacement, Del Prado ES Brick Replacement, Gove ES Mod & Pre-K, Gladeview ES Mod, Gold Coast Mod, Maintenance Compound South, Washington ES Mod, Wynnebrook El Mod, Crestwood MS Add, Plumosa 6-8 (03-LL), Greater WPB/LW Area HS (03-OOO), Scripps Area ES (04-A), and West Palm Beach Area MS (04-OO). MAINTENANCE, RENOVATION, AND REPAIR Compliance with Florida Bldg Code, ADA, Athletic Facilities and Playfields, Fire and Health Safety Modifications, HVAC Projects, Maintenance of Plant and Equipment, Maintenance of Ancillary Facilities, Masonry Remediation, Minor Projects, Portable Relocation, Roofing Inspections and Replacements, Security Projects, School and Ancillary Center Projects. MOTOR VEHICLE PURCHASES Purchase of Thirty-One (31) Buses, Purchase of District Vehicles NEW AND REPLACEMENT EQUIPMENT Classroom and District Computers, Hardware & Software, Computer Assisted Facility Management System, Classroom and District Furniture and Equipment, Custodial Equipment, Disaster Recovery Equipment, Educational Data Warehouse, Instructional Materials as Permitted by Florida Statutes, Payments for Capital Equipment Leases PAYMENTS FOR EDUCATIONAL FACILITIES AND SITES DUE UNDER A LEASE-PURCHASE AGREEMENT Master Lease-Purchase Payments for Various Facilities and Equipment PAYMENTS FOR RENTING AND LEASING EDUCATIONAL FACILITIES AND SITES Lease of Administrative and Educational Facilities PAYMENT OF COSTS OF COMPLIANCE WITH ENVIRONMENTAL STATUTES AND REGULATIONS Asbestos Abatement/Removal, Compliance with Wetlands, Well Field Protection, and Hazardous Waste Regulation, Compliance with Florida Bldg Code, Indoor Air Quality Program, Removal/Disposal of Underground Storage Tanks PAYMENT OF PREMIUMS FOR PROPERTY AND CASUALTY INSURANCE NECESSARY TO INSURE THE EDUCATIONAL AND ANCILLARY PLANTS OF THE SCHOOL DISTRICT PAYMENT OF COSTS OF LEASING RELOCATABLE EDUCATIONAL FACILITIES Leasing of Portable Classrooms for Various Facilities All concerned citizens are invited to a public hearing to be held on July 29, 2009, at 5:05 P.M., at the Winona Webb Jordan Board Chambers of the Fulton-Holland Educational Center, 3300 Forest Hill Boulevard, West Palm Beach, Florida. A DECISION on the proposed CAPITAL OUTLAY TAXES will be made at this hearing.

36 BUDGET SUMMARY THE PROPOSED OPERATING BUDGET EXPENDITURES OF THE SCHOOL DISTRICT OF PALM BEACH COUNTY ARE 1.7% LESS THAN LAST YEAR'S TOTAL OPERATING EXPENDITURES. FISCAL YEAR PROPOSED MILLAGE LEVY: Required Local Effort Basic Discretionary Debt Service Capital Outlay Critical Needs Disc. Capital Outlay Additional Discretionary Total Millage GENERAL SPECIAL DEBT CAPITAL TOTAL ALL ESTIMATED REVENUES: FUND REVENUE SERVICE PROJECTS FUNDS Federal sources $4,399,000 $266,881,858 $271,280,858 State sources 280,015,536 1,041,109 $4,669,403 6,532, ,258,396 Local sources 928,695,516 26,179, ,387,156 1,313,262,525 TOTAL SOURCES $1,213,110,052 $294,102,820 $4,669,403 $364,919,504 $1,876,801,780 Transfers In 74,611, ,000, ,611,817 Fund Balances/Reserves/Net Assets 93,000,000 17,819, ,133, ,363, ,316,368 TOTAL REVENUES, TRANSFERS & BALANCES $1,380,721,869 $311,922,557 $261,802,504 $1,099,283,034 $3,053,729,965 EXPENDITURES Instruction $850,728,512 $67,864,122 $918,592,634 Pupil Personnel Services 33,722,561 21,711,522 55,434,083 Instructional Media Services 23,869,876 4,348,543 28,218,419 Instructional and Curriculum Development Services 25,269,091 22,742,833 48,011,924 Instructional Staff Training Services 10,214,210 68,950,979 79,165,189 Instruction Related Technology 2,913,114 3,817,088 6,730,202 Board of Education 6,624,253 6,624,253 General Administration 7,116,589 5,321,436 12,438,025 School Administration 92,084, ,941 93,050,140 Facilities Acquisition and Construction 923,636 $872,671, ,594,853 Fiscal Services 6,093,155 6,093,155 Food Services 65,159,741 65,159,741 Central Services 15,969, ,795 16,328,161 Pupil Transportation Services 36,730,017 8,609,342 45,339,359 Operation of Plant 108,892,941 25,767, ,660,285 Maintenance of Plant 63,573, ,573,786 Administrative Technology Services 9,791,000 9,791,000 Community Services 34,734,643 34,734,643 Debt Services 2,132,792 $155,183, ,316,371 Other Capital Outlay TOTAL EXPENDITURES $1,331,383,542 $295,617,886 $155,183,579 $872,671,217 $2,654,856,224 Transfers Out 226,611, ,611,817 Fund Balances/Reserves/Net Assets 49,338,327 16,304, ,618, ,261,924 TOTAL APPROPRIATED EXPENDITURES TRANSFERS, RESERVES & BALANCES $1,380,721,869 $311,922,557 $261,802,504 $1,099,283,034 $3,053,729,965 The tentative, adopted, and/or final budgets are on file in the office of the above mentioned taxing authority as a public record.

37 THE SCHOOL DISTRICT OF PALM BEACH COUNTY HISTORICAL SUMMARY OF FINANCIAL AND DEMOGRAPHIC DATA (Ten Year Summary , , ) Total Revenue Includes Federal, State and Local Sources for all Governmental Funds (in millions) Operating Revenue Includes General and Special Revenue Funds (in millions) $2,000.0 $1,912.6 $1,600.0 $1,494.7 $1,400.0 $1,600.0 $1,522.8 $1,200.0 $1,199.7 $1,238.9 $1,000.0 $912.6 $1,200.0 $800.0 $600.0 $ $ $40.0 Debt Service Revenue (in millions) $37.0 $42.4 Revenue Per Student Operating Revenue divided by Number of Students $10,000 $30.0 $20.0 $9,000 $8,000 $7,000 $6,244 $7,141 $8,815 $10.0 $4.6 $6,000 $5,000 $0.0 $4, Pg yr-ads.xlsx

38 THE SCHOOL DISTRICT OF PALM BEACH COUNTY HISTORICAL SUMMARY OF FINANCIAL AND DEMOGRAPHIC DATA (Ten Year Summary , , ) 22,000 20,000 18,000 16,000 Number of Employees Includes All Full Time District Employees 16,148 18,342 20,610 $600.0 $500.0 $400.0 $300.0 Capital Projects Funds Revenue (in millions) $289.3 $280.8 $ ,000 $ ,000 $ Teaching Personnel Includes All Instructional Employees Number Of Students Total Unweighted FTE 16, , , ,554 14,000 12,497 14, ,000 12,000 11, , ,175 10,000 8, ,000 6, , Pg yr-ads.xlsx

39 Board Meeting Date: July 29, 2009 Agenda Item # 1 SCHOOL DISTRICT OF PALM BEACH COUNTY BOARD AGENDA ITEM SUMMARY DIVISION OF FINANCIAL MANAGEMENT RESOLUTION ADOPTING TENTATIVE MILLAGE RATES I recommend the School Board adopt the proposed millage levy of mills for FY2010. This total millage levy is made up of mills for Required Local Effort,.6500 mills for Discretionary Operating Funds, mills for Capital Improvement Projects, and.0980 for Discretionary Capital Outlay Funds. A breakdown of the proposed millage rate as compared to the rolled back rate is as follows: % Proposed Rolled Back Increase Millage Rate (Decrease) Required Local Effort (0.21%) Discretionary Operating % Additional Discretionary (100.00%) Capital (23.62%) Discretionary Capital Outlay Total Mills (1.90%) BOARD GOAL: #6 KEY RESULT: #10 PRESENTER: Joseph M. Moore TIME OF PRESENTATION: 30 Minutes FINANCIAL IMPACT The financial impact to the school district's budget is $1,097,901,232 of revenue from local taxes during FY A C T I O N A G E N D A I T E M

40 Board Meeting Date: July 29, 2009 Agenda Item # 2 SCHOOL DISTRICT OF PALM BEACH COUNTY BOARD AGENDA ITEM SUMMARY DIVISION OF FINANCIAL MANAGEMENT RESOLUTION ADOPTING CRITICAL NEEDS MILLAGE RATE I recommend the School Board adopt the critical capital outlay needs millage levy of mills for FY2010. The critical needs millage levy must have a super majority vote and by law, may be used for operating or capital critical needs. The millage levy reflects a nonrecurring revenue source and is recommended the full amount be levied in capital for one time capital projects. BOARD GOAL: #6 KEY RESULT: #10 PRESENTER: Joseph M. Moore TIME OF PRESENTATION: 30 Minutes FINANCIAL IMPACT The financial impact to the school district's budget is $35,494,027 of revenue from local taxes during FY A C T I O N A G E N D A I T E M

41 Board Meeting Date: July 29, 2009 Agenda Item # 3 SCHOOL DISTRICT OF PALM BEACH COUNTY BOARD AGENDA ITEM SUMMARY DIVISION OF FINANCIAL MANAGEMENT RESOLUTION ADOPTING TENTATIVE BUDGET I recommend the School Board adopt the tentative district summary budget in the amount of $2,827,118,148 for FY The recapitulation of this budget is scheduled below. General Fund $1,380,721,869 Special Revenue - Food Service 81,424,237 Special Revenue - Other * 98,227,263 Special Revenue - ARRA Stimulus 132,271,058 Debt Service 261,802,504 Capital Projects 1,099,283,034 Sub-Total $3,053,729,965 Less Transfers: (226,611,817) Total Funds $2,827,118,148 *Not all Federal and State funds have been received, it is anticipated the FY 2010 revenue will be similar to FY BOARD GOAL: #6 KEY RESULT: #10 PRESENTER: Joseph M. Moore TIME OF PRESENTATION: 30 Minutes FINANCIAL IMPACT The financial impact to the school district is a budget of $2,827,118,148 in all funds for FY A C T I O N A G E N D A I T E M

42 SCHOOL DISTRICT OF PALM BEACH COUNTY Board Meeting Date: September 9, 2009 Final Budget Adoption DIVISION: Budget Resolution Certifying Millage To Be Levied Description: Chapter (2)(f)3 of the Florida Statutes requires that the school district hold a public hearing to adopt a millage rate within 80 days of certification of value, but not earlier than 65 days after certification. The total millage rate being levied is which raises $1,097,901,234 in local revenues. Item Type: Action Recommendation: I recommend the School Board adopt the Resolution determining revenues and millages levied for FY2010. Legal Review Required: No Contact: Joseph M. Moore (moorej@palmbeach.k12.fl.us) Michael J. Burke (burkem@palmbeach.k12.fl.us) Financial Impact: The financial impact to the district is $1,097,901,234 in local tax revenues for FY Full Review Required: Yes

43 Please return completed form to: Florida Department of Education Office of Funding and Financial Reporting 325 W. Gaines St., Room 824 Tallahassee, FL FLORIDA DEPARTMENT OF EDUCATION RESOLUTION DETERMINING REVENUES AND MILLAGES LEVIED RESOLUTION OF THE DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY, FLORIDA, DETERMINING THE AMOUNT OF REVENUES TO BE PRODUCED AND THE MILLAGE TO BE LEVIED FOR THE GENERAL FUND, FOR THE DISTRICT LOCAL CAPITAL IMPROVEMENT FUND, AND FOR DISTRICT DEBT SERVICE FUNDS FOR THE FISCAL YEAR BEGINNING JULY 1, 2009, AND ENDING JUNE 30, WHEREAS, Section , Florida Statutes, requires that upon receipt of the certificate of the property appraiser giving the assessed valuation of the county and of each of the special tax school districts, the school board shall determine by resolution the amounts necessary to be raised for current operating purposes and for debt service funds and the millage to be levied for each such fund, including the voted millage; and WHEREAS, Section , Florida Statutes, provides for the amounts necessary to be raised for local capital improvement outlay and the millage to be levied; and WHEREAS, the certificate of the property appraiser has been received; THEREFORE, BE IT RESOLVED by the District School Board that the amounts necessary to be raised as shown by the officially adopted budget and the millages necessary to be levied for each school fund of the district for the fiscal year are as follows: 1. DISTRICT SCHOOL TAX (nonvoted levy) a) Certified taxable value b) Description of levy c) Amount to be raised d) Millage levy $ 149,448,533,249 Required Local Effort $ 772,491, mills Required Local Effort - Prior Period Adjustment $ 6,246, mills 2. DISTRICT SCHOOL TAX DISCRETIONARY MILLAGE (nonvoted levy) a) Certified taxable value b) Description of levy c) Amount to be raised d) Millage levy $ 149,448,533,249 Discretionary Operating $ 92,284, mills 3. DISTRICT SCHOOL TAX ADDITIONAL MILLAGE (voted levy) a) Certified taxable value b) Description of levy c) Amount to be raised d) Millage levy $ 149,448,533,249 Additional Operating $ 0 mills Additional Capital Improvement $ 0 mills

44 4. DISTRICT DISCRETIONARY LOCAL CAPITAL IMPROVEMENT TAX (nonvoted levy) a) Certified taxable value b) Description of levy c) Amount to be raised d) Millage levy Discretionary Local $ 149,448,533,249 Capital Improvement $ 212,964, mills Discretionary Capital Outlay $ 13,913, mills 5. DISTRICT DEBT SERVICE TAX (voted) a) Certified taxable value b) Description of levy c) Amount to be raised d) Millage levy $ 149,448,533,249 $ 0 mills $ 0 mills $ 0 mills $ 0 mills $ 0 mills 6. THE TOTAL MILLAGE RATE TO BE LEVIED EXCEEDS IS LESS THAN THE ROLL-BACK RATE COMPUTED PURSUANT TO SECTION (1), F.S., BY 1.90 PERCENT. STATE OF FLORIDA COUNTY OF PALM BEACH I, Arthur C. Johnson, Superintendent of Schools and ex officio Secretary of the District School Board of Palm Beach County, Florida, do hereby certify that the above is a true and complete copy of a resolution passed and adopted by the District School Board of Palm Beach County, Florida, September 9, Signature of Superintendent of Schools September 9, 2009 Date of Signature Note: Copies of this resolution shall be sent to the Florida Department of Education, School Business Services, Office of Funding and Financial Reporting, 325 W. Gaines Street, Room 824, Tallahassee, Florida ; county tax collector; and county property appraiser.

45 SCHOOL DISTRICT OF PALM BEACH COUNTY Board Meeting Date: September 9, 2009 Final Budget Adoption DIVISION: Budget Resolution Certifying Critical Needs Millage To Be Levied Description: Chapter (2)(f)3 of the Florida Statutes requires that the school district hold a public hearing to adopt a millage rate within 80 days of certification of value, but not earlier than 65 days after certification. The total millage rate being levied is which raises $35,494,027 in local revenues. Item Type: Action Recommendation: I recommend the School Board adopt the Resolution determining revenues and critical needs millages levied for FY2010. Legal Review Required: No Contact: Joseph M. Moore (moorej@palmbeach.k12.fl.us) Michael J. Burke (burkem@palmbeach.k12.fl.us) Financial Impact: The financial impact to the district is $35,494,027 in local tax revenues for FY Full Review Required: Yes

46 Please return completed form to: Florida Department of Education Office of Funding and Financial Reporting 325 W. Gaines St., Room 824 Tallahassee, FL FLORIDA DEPARTMENT OF EDUCATION RESOLUTION DETERMINING CRITICAL NEEDS REVENUES AND MILLAGES LEVIED RESOLUTION OF THE DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY, FLORIDA, DETERMINING THE AMOUNT OF REVENUES TO BE PRODUCED AND THE MILLAGE TO BE LEVIED FOR CRITICAL CAPITAL OUTLAY NEEDS OR CRITICAL OPERATING NEEDS FOR THE FISCAL YEAR BEGINNING JULY 1, 2009, AND ENDING JUNE 30, WHEREAS, Section (3)(b), Florida Statutes, provides for the amounts necessary to be raised for either critical capital outlay needs or critical operating needs and the 0.25 mills to be levied; and WHEREAS, the Board has authorized by a super majority vote; and WHEREAS, the certificate of the property appraiser has been received; THEREFORE, BE IT RESOLVED by the District School Board that the amounts necessary to be raised as shown by the officially adopted budget and the millages necessary to be levied for critical needs for the fiscal year are as follows: 1. DISTRICT SCHOOL TAX DISCRETIONARY MILLAGE (nonvoted levy) a) Certified taxable value b) Description of levy c) Amount to be raised d) Millage levy $ 149,448,533,249 Critical Operating Needs $ 0 mills 2. DISTRICT LOCAL CAPITAL IMPROVEMENT TAX DISCRETIONARY MILLAGE (nonvoted levy) a) Certified taxable value b) Description of levy c) Amount to be raised d) Millage levy $ 149,448,533,249 Critical Capital Outlay Needs $ 35,494, mills STATE OF FLORIDA COUNTY OF PALM BEACH I, Arthur C. Johnson, Superintendent of Schools and ex officio Secretary of the District School Board of Palm Beach County, Florida, do hereby certify that the above is a true and complete copy of a resolution passed and adopted by a super majority vote of the District School Board of Palm Beach County, Florida, September 9, Signature of Superintendent of Schools September 9, 2009 Date of Signature Note: Copies of this resolution shall be sent to the Florida Department of Education, School Business Services, Office of Funding and Financial Reporting, 325 W. Gaines Street, Room 824, Tallahassee, Florida ; county tax collector; and county property appraiser.

47 SCHOOL DISTRICT OF PALM BEACH COUNTY Board Meeting Date: September 9, 2009 Final Budget Adoption DIVISION: Budget Approval of District Summary Budget Description: The recapitulation of this budget is scheduled below. Item Type: Action General Fund $1,376,925,796 Special Revenue Food Service 83,657,360 Special Revenue Other* 109,928,866 Special Revenue ARRA Stimulus 132,346,287 Debt Service 265,045,215 Capital Projects 1,002,521,417 Sub-Total $2,970,424,941 Less Transfers: (231,357,064) Total Funds $2,739,067,877 Recommendation: I recommend the School Board adopt the final district summary budget in the amount of $2,739,067,877 for FY Legal Review Required: No Contact: Joseph M. Moore (moorej@palmbeach.k12.fl.us) Michael J. Burke (burkem@palmbeach.k12.fl.us) Financial Impact: The financial impact to the school district is a budget of $2,739,067,877 in all funds for FY Full Review Required: Yes

48 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET Fiscal Year SECTION I. ASSESSMENT AND MILLAGE LEVIES Page 1 A. Certification of Taxable Value of Property in County by Property Appraiser 149,448,533, B. Millage Levies on Nonexempt Property: DISTRICT MILLAGE LEVIES Nonvoted Voted Total 1. Required Local Effort Required Local Effort Prior Period Adjustment Discretionary Operating Critical Operating Needs 5. Additional Operating 6. Additional Local Capital Improvement 7. Discretionary Local Capital Improvement Discretionary Capital Outlay Critical Capital Outlay Needs Debt Service TOTAL MILLS ESE 139 EXP. 06/30/10 Page 37

49 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION II. GENERAL FUND - FUND 100 Page 2 Account ESTIMATED REVENUES Number FEDERAL: Federal Impact, Current Operations , Reserve Officers Training Corps (ROTC) , Miscellaneous Federal Direct 3199 Total Federal Direct , FEDERAL THROUGH STATE AND LOCAL: Medicaid ,600, National Forest Funds 3255 Federal Through Local 3280 Miscellaneous Federal through State 3299 Total Federal Through State And Local ,600, STATE: Florida Education Finance Program (FEFP) ,964, Workforce Development ,597, Workforce Development Capitalization Incentive Grant 3316 Workforce Education Performance Incentive , Adults With Disabilities ,186, CO & DS Withheld for Administrative Expense , Florida Teachers Lead Program (FEFP Earmarked) 3334 Diagnostic and Learning Resources Centers 3335 Instructional Materials (FEFP Earmarked) 3336 Racing Commission Funds 3341 State Forest Funds 3342 State License Tax , District Discretionary Lottery Funds 3344 Transportation (FEFP Earmarked) 3354 Class Size Reduction Operating Funds ,738, School Recognition Funds ,146, Excellent Teaching Program 3363 Voluntary Prekindergarten Program ,515, Preschool Projects 3372 Reading Programs 3373 Full Service Schools 3378 Other Miscellaneous State Revenue , Total State ,100, LOCAL: District School Tax ,023, Tax Redemptions 3421 Payment in Lieu of Taxes , Excess Fees 3423 Tuition (Non-Resident) 3424 Rent , Interest, Including Profit On Investment ,700, Gifts, Grants and Bequests , Adult General Education Course Fees 3461 Postsecondary Vocational Course Fees 3462 Continuing Workforce Education Course Fees 3463 Capital Improvement Fees 3464 Postsecondary Lab Fees 3465 Lifelong Learning Fees 3466 General Education Development (GED) Testing Fees , Financial Aid Fees 3468 Other Student Fees ,400, Preschool Program Fees 3471 Prekindergarten Early Intervention Fees 3472 School Age Child Care Fees ,500, Other Schools, Courses and Classes Fees 3479 Miscellaneous Local Sources ,367, Total Local ,658, TOTAL ESTIMATED REVENUES 1,205,157, OTHER FINANCING SOURCES Loans 3720 Sale of Capital Assets 3730 Loss Recoveries 3740 Transfers In: From Debt Service Funds 3620 From Capital Projects Funds ,357, From Special Revenue Funds 3640 From Permanent Fund 3660 From Internal Service Funds 3670 From Enterprise Funds 3690 Total Transfers In ,357, TOTAL OTHER FINANCING SOURCES 79,357, Fund Balance, July 1, ,411, TOTAL ESTIMATED REVENUES, OTHER FINANCING SOURCES, AND FUND BALANCE 1,376,925, ESE 139

50 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION II. GENERAL FUND - FUND 100 (Continued) Page 3 Account Totals Salaries Employee Benefits Purchased Services Energy Services Materials & Supplies Capital Outlay Other Expenses APPROPRIATIONS Number Instruction ,471, ,717, ,190, ,300, ,269, , ,344, Pupil Personnel Services ,868, ,367, ,565, , , , Instructional Media Services ,513, ,131, ,084, , , ,591, , , Instruction and Curriculum Development Services ,552, ,796, ,748, , , , , Instructional Staff Training Services ,618, ,292, ,345, , , , ,145, Instruction Related Technology ,228, ,339, , ,498, , , Board ,989, ,129, , , , , ,921, General Administration ,288, ,838, ,385, , , , , , School Administration ,143, ,604, ,498, , , , , Facilities Acquisition and Construction , , , , , Fiscal Services ,805, ,033, ,264, ,296, , , , Food Service Central Services ,294, ,070, ,114, ,526, , , , , Pupil Transportation Services ,593, ,104, ,919, ,287, ,663, ,086, , , Operation of Plant ,993, ,049, ,097, ,214, ,296, ,493, , ,772, Maintenance of Plant ,518, ,008, ,720, ,731, ,172, ,391, ,218, ,275, Administrative Technology Services ,917, ,087, ,568, ,484, , ,675, , Community Services ,700, ,722, ,297, , , ,898, , ,282, Debt Service ,132, ,132, Other Capital Outlay TOTAL APPROPRIATIONS 1,332,556, ,629, ,205, ,692, ,347, ,848, ,937, ,896, OTHER FINANCING USES: Transfers Out: (Function 9700) To Debt Service Funds 920 To Capital Projects Funds 930 To Special Revenue Funds 940 To Permanent Fund 960 To Internal Service Funds 970 To Enterprise Funds 990 Total Transfers Out TOTAL OTHER FINANCING USES 0.00 Fund Balance, June 30, ,369, TOTAL APPROPRIATIONS, OTHER FINANCING USES, AND FUND BALANCE 1,376,925, ESE 139

51 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION III. SPECIAL REVENUE FUNDS - FOOD SERVICES - FUND 410 Page 4 ESTIMATED REVENUES Account Number FEDERAL THROUGH STATE AND LOCAL: National School Lunch Act ,357, U.S.D.A. Donated Foods ,613, Federal Through Local 3280 Miscellaneous Federal Through State 3299 Total Federal Through State And Local ,970, STATE: School Breakfast Supplement , School Lunch Supplement , Other Miscellaneous Revenue 3399 Total State , LOCAL: Interest, Including Profit on Investment , Gifts, Grants and Bequests 3440 Food Service ,223, Other Miscellaneous Local Sources , Total Local ,734, TOTAL ESTIMATED REVENUES 63,604, OTHER FINANCING SOURCES: Loans 3720 Sale of Capital Assets 3730 Loss Recoveries 3740 Transfers In: From General Fund 3610 From Debt Service 3620 From Capital Projects Funds 3630 Interfund Transfer 3650 From Permanent Fund 3660 From Internal Service Funds 3670 From Enterprise Funds 3690 Total Transfers In TOTAL OTHER FINANCING SOURCES 0.00 Fund Balance, July 1, ,052, TOTAL ESTIMATED REVENUES, OTHER FINANCING SOURCES, AND FUND BALANCE 83,657, ESE 139

52 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION III. SPECIAL REVENUE FUNDS - FOOD SERVICES - FUND 410 (CONTINUED) Page 5 APPROPRIATIONS Account Number Food Services: (Function 7600) Salaries ,263, Employee Benefits ,034, Purchased Services 300 7,123, Energy Services 400 2,574, Materials and Supplies ,462, Capital Outlay 600 1,700, Other Expenses 700 1,960, Capital Outlay (Function 9300) 600 TOTAL APPROPRIATIONS ,119, OTHER FINANCING USES: Transfers Out (Function 9700) To General Fund 910 To Debt Service Funds 920 To Capital Projects Funds 930 Interfund 950 To Permanent Fund 960 To Internal Service Funds 970 To Enterprise Funds 990 Total Transfers Out TOTAL OTHER FINANCING USES 0.00 Fund Balance, June 30, ,537, TOTAL APPROPRIATIONS, OTHER FINANCING USES, AND FUND BALANCE 83,657, ESE 139

53 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION IV. SPECIAL REVENUE FUNDS - FEDERAL PROGRAMS - FUND 420 Page 6 ESTIMATED REVENUES Account Number FEDERAL DIRECT: Workforce Investment Act 3170 Community Action Programs 3180 Reserve Officers Training Corps (ROTC) Miscellaneous Federal Direct ,014, Total Federal Direct ,015, FEDERAL THROUGH STATE AND LOCAL: Vocational Education Acts ,670, Medicaid 3202 Workforce Investment Act 3220 Eisenhower Math and Science 3226 Drug Free Schools 3227 Individuals with Disabilities Education Act (IDEA) ,225, Elementary and Secondary Education Act, Title I ,460, Adult General Education ,911, Vocational Rehabilitation 3253 Elementary and Secondary Education Act, Title V 3270 Federal Through Local 3280 Miscellaneous Federal Through State ,898, Total Federal Through State And Local ,166, STATE: Other Miscellaneous State Revenue , Total State , LOCAL: Interest, Including Profit on Investment 3430 Gifts, Grants & Bequests , Other Miscellaneous Local Sources 3495 Total Local , TOTAL ESTIMATED REVENUES 109,928, OTHER FINANCING SOURCES: Loans 3720 Sale of Capital Assets 3730 Loss Recoveries 3740 Transfers In: From General Fund 3610 From Debt Service Funds 3620 From Capital Projects Funds 3630 Interfund 3650 From Permanent Fund 3660 From Internal Service Funds 3670 From Enterprise Funds 3690 Total Transfers In TOTAL OTHER FINANCING SOURCES 0.00 Fund Balance, July 1, TOTAL ESTIMATED REVENUES, OTHER FINANCING SOURCES, AND FUND BALANCE 109,928, ESE 139

54 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION IV. SPECIAL REVENUE FUNDS - FEDERAL PROGRAMS - FUND 420 (Continued) Page 7 Account Salaries Employee Benefits Purchased Services Energy Services Materials & Supplies Capital Outlay Other Expenses APPROPRIATIONS Number Totals Instruction ,557, ,464, ,233, ,541, , ,057, , , Pupil Personnel Services ,057, ,640, ,351, ,199, , , , Instructional Media Services , , Instruction and Curriculum Development Services ,291, ,669, ,530, ,906, , , , Instructional Staff Training Services ,372, ,472, ,395, ,136, , , , Instruction Related Technology , , , Board General Administration ,454, ,454, School Administration , , Facilities Acquisition and Construction Fiscal Services , , , Food Services Central Services , , , Pupil Transportation Services ,974, , , , , ,823, Operation of Plant , , , Maintenance of Plant , , Administrative Technology Services Community Services Debt Service Other Capital Outlay TOTAL APPROPRIATIONS 109,928, ,392, ,559, ,894, , ,912, ,167, ,987, OTHER FINANCING USES: Transfers Out: (Function 9700) To General Fund 910 To Debt Service Funds 920 To Capital Projects Funds 930 Interfund 950 To Permanent Fund 960 To Internal Service Funds 970 To Enterprise Funds 990 Total Transfers Out TOTAL OTHER FINANCING USES 0.00 Fund Balance, June 30, TOTAL APPROPRIATIONS, OTHER FINANCING USES, AND FUND BALANCE 109,928, ESE 139

55 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION V. SPECIAL REVENUE FUNDS - STATE FISCAL STABILIZATION FUNDS - FUND 431 Page 8 ESTIMATED REVENUES Account Number FEDERAL THROUGH STATE AND LOCAL: State Fiscal Stabilization Funds - K ,872, State Fiscal Stabilization Funds - Workforce ,013, State Fiscal Stabilization Funds - VPK 3212 Miscellaneous Federal Through State 3299 Total Federal Through State And Local ,885, LOCAL: Interest, Including Profit on Investment 3430 Total Local TOTAL ESTIMATED REVENUES 61,885, OTHER FINANCING SOURCES: Sale of Capital Assets 3730 Loss Recoveries 3740 Transfers In: From Capital Projects Funds 3630 Total Transfers In TOTAL OTHER FINANCING SOURCES 0.00 Fund Balance, July 1, TOTAL ESTIMATED REVENUES, OTHER FINANCING SOURCES, AND FUND BALANCE 61,885, ESE 139

56 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION V. SPECIAL REVENUE FUNDS - STATE FISCAL STABILIZATION FUNDS - FUND 431 Page 9 Account Salaries Employee Benefits Purchased Services Energy Services Materials & Supplies Capital Outlay Other Expenses APPROPRIATIONS Number Totals Instruction , , , Pupil Personnel Services ,803, ,457, ,946, ,400, Instructional Media Services ,301, ,172, ,129, Instruction and Curriculum Development Services ,731, ,594, ,137, Instructional Staff Training Services Instruction Related Technology ,727, ,562, ,164, Board General Administration School Administration , , , Facilities Acquisition and Construction Fiscal Services Food Services Central Services , , , Pupil Transportation Services ,344, ,145, ,198, Operation of Plant ,221, ,169, ,052, Maintenance of Plant Administrative Technology Services Community Services Debt Service Other Capital Outlay TOTAL APPROPRIATIONS 61,885, ,313, ,171, ,400, OTHER FINANCING USES: Transfers Out: (Function 9700) To Capital Projects Funds 930 Total Transfers Out TOTAL OTHER FINANCING USES 0.00 Fund Balance, June 30, TOTAL APPROPRIATIONS, OTHER FINANCING USES, AND FUND BALANCE 61,885, ESE 139

57 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION V. SPECIAL REVENUE FUNDS - TARGETED ARRA STIMULUS FUNDS - FUND 432 Page 10 ESTIMATED REVENUES Account Number FEDERAL THROUGH STATE AND LOCAL: Individuals with Disabilities Education Act (IDEA) ,010, Elementary and Secondary Education Act, Title I ,335, Miscellaneous Federal Through State , Total Federal Through State And Local ,421, LOCAL: Interest, Including Profit on Investment 3430 Total Local TOTAL ESTIMATED REVENUES 70,421, OTHER FINANCING SOURCES: Sale of Capital Assets 3730 Loss Recoveries 3740 Transfers In: From Capital Projects Funds 3630 Total Transfers In TOTAL OTHER FINANCING SOURCES 0.00 Fund Balance, July 1, TOTAL ESTIMATED REVENUES, OTHER FINANCING SOURCES, AND FUND BALANCE 70,421, ESE 139

58 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION V. SPECIAL REVENUE FUNDS - TARGETED ARRA STIMULUS FUNDS - FUND 432 Page 11 Account Salaries Employee Benefits Purchased Services Energy Services Materials & Supplies Capital Outlay Other Expenses APPROPRIATIONS Number Totals Instruction ,373, ,145, ,574, ,511, ,139, , , Pupil Personnel Services ,041, , , , , , , Instructional Media Services ,042, ,042, Instruction and Curriculum Development Services ,677, ,746, , , , , , Instructional Staff Training Services ,775, ,948, ,530, , ,790, , ,033, Instruction Related Technology , , , Board General Administration ,077, ,077, School Administration Facilities Acquisition and Construction Fiscal Services Food Services Central Services Pupil Transportation Services ,401, , ,393, Operation of Plant Maintenance of Plant Administrative Technology Services Community Services Debt Service Other Capital Outlay TOTAL APPROPRIATIONS 70,421, ,384, ,385, ,215, ,714, ,155, ,566, OTHER FINANCING USES: Transfers Out: (Function 9700) To Capital Projects Funds 930 Total Transfers Out TOTAL OTHER FINANCING USES 0.00 Fund Balance, June 30, TOTAL APPROPRIATIONS, OTHER FINANCING USES, AND FUND BALANCE 70,421, ESE 139

59 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION V. SPECIAL REVENUE FUNDS - OTHER ARRA STIMULUS GRANTS - FUND 433 Page 12 ESTIMATED REVENUES Account Number FEDERAL THROUGH STATE AND LOCAL: Other Food Services , Miscellaneous Federal Through State 3299 Total Federal Through State And Local , LOCAL: Interest, Including Profit on Investment 3430 Total Local TOTAL ESTIMATED REVENUES 40, OTHER FINANCING SOURCES: Sale of Capital Assets 3730 Loss Recoveries 3740 Transfers In: From Capital Projects Funds 3630 Total Transfers In TOTAL OTHER FINANCING SOURCES 0.00 Fund Balance, July 1, TOTAL ESTIMATED REVENUES, OTHER FINANCING SOURCES, AND FUND BALANCE 40, ESE 139

60 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION V. SPECIAL REVENUE FUNDS - OTHER ARRA STIMULUS GRANTS - FUND 433 Page 13 Account Salaries Employee Benefits Purchased Services Energy Services Materials & Supplies Capital Outlay Other Expenses APPROPRIATIONS Number Totals Instruction Pupil Personnel Services Instructional Media Services Instruction and Curriculum Development Services Instructional Staff Training Services Instruction Related Technology Board General Administration School Administration Facilities Acquisition and Construction Fiscal Services Food Services , , Central Services Pupil Transportation Services Operation of Plant Maintenance of Plant Administrative Technology Services Community Services Debt Service Other Capital Outlay TOTAL APPROPRIATIONS 40, , OTHER FINANCING USES: Transfers Out: (Function 9700) To Capital Projects Funds 930 Total Transfers Out TOTAL OTHER FINANCING USES 0.00 Fund Balance, June 30, TOTAL APPROPRIATIONS, OTHER FINANCING USES, AND FUND BALANCE 40, ESE 139

61 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION VI. SPECIAL REVENUE FUND - MISCELLANEOUS - FUND 490 Page 14 ESTIMATED REVENUES Account Number Federal Through Local 3280 Interest, Including Profit on Investment 3430 Gifts, Grants and Bequests 3440 Other Miscellaneous Local Sources 3495 TOTAL ESTIMATED REVENUES 3000 OTHER FINANCING SOURCES Transfers In: From General Fund 3610 From Debt Service Funds 3620 From Capital Projects Funds 3630 Interfund 3650 From Permanent Fund 3660 From Internal Service Funds 3670 From Enterprise Funds 3690 Total Transfers In 3600 TOTAL OTHER FINANCING SOURCES Fund Balance, July 1, TOTAL ESTIMATED REVENUES, OTHER FINANCING SOURCES AND FUND BALANCE APPROPRIATIONS Instruction 5000 Pupil Personnel Services 6100 Instructional Media Services 6200 Instruction and Curriculum Development Services 6300 Instructional Staff Training Services 6400 Instruction Related Technology 6500 Board 7100 General Administration 7200 School Administration 7300 Facilities Acquisition and Construction 7400 Fiscal Services 7500 Central Services 7700 Pupil Transportation Services 7800 Operation of Plant 7900 Maintenance of Plant 8100 Administrative Technology Services 8200 Community Services 9100 Other Capital Outlay 9300 TOTAL APPROPRIATIONS OTHER FINANCING USES: Transfers Out: (Function 9700) To General Fund 910 To Debt Service Funds 920 To Capital Projects Funds 930 Interfund 950 To Permanent Fund 960 To Internal Service Funds 970 To Enterprise Funds 990 Total Transfers Out 9700 TOTAL OTHER FINANCING USES Fund Balance, June 30, TOTAL APPROPRIATIONS, OTHER FINANCING USES, AND FUND BALANCE ESE 139

62 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION VII. DEBT SERVICE FUNDS Page ESTIMATED REVENUES Account Totals SBE & COBI Bonds Special Act Bonds Section F.S. Motor Vehicle District Bonds Other Number (Race Track) Loans Revenue Bonds Debt Service STATE SOURCES: CO & DS Distributed CO & DS Withheld for SBE/COBI Bonds ,669, ,669, Cost of Issuing SBE/COBI Bonds Interest on Undistributed CO & DS SBE/COBI Bond Interest Racing Commission Funds Total State Sources ,669, ,669, LOCAL SOURCES: District Debt Service Taxes Local Sales Tax Tax Redemptions Excess Fees Rent Interest, Including Profit on Investment Gifts, Grants, and Bequests Total Local Sources TOTAL ESTIMATED REVENUES 4,669, ,669, OTHER FINANCING SOURCES: Sale of Bonds Loans Proceeds of Certificates of Participation Transfers In: From General Fund From Capital Projects Funds ,000, ,000, From Special Revenue Funds Interfund (Debt Service Only) From Permanent Fund From Internal Service Funds From Enterprise Funds Total Transfers In ,000, ,000, TOTAL OTHER FINANCING SOURCES 152,000, ,000, Fund Balances, July 1, ,375, , ,533, TOTAL ESTIMATED REVENUES, OTHER FINANCING SOURCES, AND FUND BALANCES 265,045, ,511, ,533, ESE139

63 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION VII. DEBT SERVICE FUNDS (Continued) Page APPROPRIATIONS Account Totals SBE & COBI Bonds Special Act Bonds Section F. S. Motor Vehicle District Bonds Other Number (Race Track) Loans Revenue Bonds Debt Service Debt Service: (Function 9200) Redemption of Principal ,170, ,175, ,995, Interest ,030, ,570, ,460, Dues and Fees , , , Miscellaneous Expenses TOTAL APPROPRIATIONS ,764, ,749, ,015, OTHER FINANCING USES: Transfers Out: (Function 9700) To General Fund To Capital Projects Funds To Special Revenue Funds Interfund (Debt Service Only) To Permanent Fund To Internal Service Funds To Enterprise Funds Total Transfers Out TOTAL OTHER FINANCING USES Fund Balances, June 30, ,280, , ,518, TOTAL APPROPRIATIONS, OTHER FINANCING USES, AND FUND BALANCES 265,045, ,511, ,533, ESE 139

64 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION VIII. CAPITAL PROJECTS FUNDS Page ESTIMATED REVENUES Account Capital Outlay Special Act Bonds Section Public Education Capital Outlay & Cap. Improvements Voted Capital Other ARRA Economic Number Totals Bond Issues (COBI) (Racetrack) F.S. Loans Cap Outlay (PECO) District Bonds Debt Service Funds Section (2) Improvements Capital Projects Stimulus Projects FEDERAL SOURCES: Other Federal Through State Total Federal Sources STATE SOURCES: CO & DS Distributed ,871, ,871, Interest on Undistributed CO & DS Racing Commission Funds Public Education Capital Outlay (PECO) ,963, ,963, Classrooms First Program School Infrastructure Thrift Program Effort Index Grants Smart Schools Small County Asst. Program Class Size Reduction/Capital Funds Charter School Capital Outlay Funding ,524, ,524, Other Miscellaneous State Revenue Total State Sources ,360, ,963, ,871, ,524, LOCAL SOURCES: District Local Capital Improvement Tax ,371, ,371, Local Sales Tax ,776, ,776, Tax Redemptions , , Interest, Including Profit on Investment ,500, ,500, Gifts, Grants, and Bequests Miscellaneous Local Sources , , Impact Fees ,739, ,739, Refunds of Prior Year Expenditures Total Local Sources ,496, ,871, ,624, TOTAL ESTIMATED REVENUES 365,856, ,963, ,871, ,871, ,148, OTHER FINANCING SOURCES Sale of Bonds Loans Sale of Capital Assets , , Loss Recoveries Proceeds of Certificates of Participation Transfers In: From General Fund From Debt Service Funds From Special Revenue Funds Interfund (Capital Projects Only) From Permanent Fund From Internal Service Funds From Enterprise Funds Total Transfers In TOTAL OTHER FINANCING SOURCES 85, , Fund Balances, July 1, ,579, ,240, ,339, TOTAL ESTIMATED REVENUES, OTHER FINANCING SOURCES, AND FUND BALANCES 1,002,521, ,963, ,871, ,112, ,573, ESE 139

65 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION VIII. CAPITAL PROJECTS FUNDS (Continued) Page APPROPRIATIONS Account Totals Capital Outlay Special Act Bonds Section Public Education District Bonds Capital Outlay & Cap. Improvements Voted Capital Other ARRA Economic Number Bond Issues (COBI) (Racetrack) F.S. Loans Cap Outlay (PECO) Debt Service Funds Section (2) Improvements Capital Projects Stimulus Projects Appropriations: (Functions 7400/9200) Library Books (New Libraries) , , , Audio-Visual Materials (Non-Consumable) , , , Buildings and Fixed Equipment ,507, ,871, ,919, ,715, Furniture, Fixtures, and Equipment ,635, ,356, ,278, Motor Vehicles (Including Buses) 650 4,497, ,600, , Land 660 5,850, , ,029, Improvements Other Than Buildings ,283, ,130, ,152, Remodeling and Renovations ,832, ,821, ,010, Computer Software , , , Redemption of Principal ,776, ,776, Interest 720 3,942, ,942, Dues and Fees 730 2,990, ,990, TOTAL APPROPRIATIONS 771,164, ,871, ,346, ,946, OTHER FINANCING USES: Transfers Out: (Function 9700) To General Fund ,357, ,963, ,868, ,524, To Debt Service Funds ,000, ,897, ,102, To Special Revenue Funds Interfund (Capital Projects Only) To Permanent Fund To Internal Service Funds To Enterprise Funds Total Transfers Out ,357, ,963, ,765, ,627, TOTAL OTHER FINANCING USES 231,357, ,963, ,765, ,627, Fund Balances, June 30, TOTAL APPROPRIATIONS, OTHER FINANCING USES, AND FUND BALANCES 1,002,521, ,963, ,871, ,112, ,573, ESE 139

66 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION IX. PERMANENT FUND - FUND 000 Page 19 Account ESTIMATED REVENUES Number Federal Direct 3100 Federal Through State 3200 State Sources 3300 Local Sources 3400 TOTAL ESTIMATED REVENUES 0.00 OTHER FINANCING SOURCES: Sale of Capital Assets 3730 Loss Recoveries 3740 Transfers In: From General Fund 3610 From Debt Service Funds 3620 From Capital Projects Funds 3630 From Special Revenue Funds 3640 From Internal Service Funds 3670 From Enterprise Funds 3690 Total Transfers In TOTAL OTHER FINANCING SOURCES 0.00 Fund Balance, July 1, TOTAL ESTIMATED REVENUES, OTHER FINANCING SOURCES, AND FUND BALANCE 0.00 APPROPRIATIONS Instruction 5000 Pupil Personnel Services 6100 Instructional Media Services 6200 Instruction and Curriculum Development Services 6300 Instructional Staff Training Services 6400 Instruction Related Technology 6500 Board 7100 General Administration 7200 School Administration 7300 Facilities Acquisition and Construction 7400 Fiscal Services 7500 Central Services 7700 Pupil Transportation Services 7800 Operation of Plant 7900 Maintenance of Plant 8100 Administrative Technology Services 8200 Community Services 9100 Debt Service 9200 Other Capital Outlay 9300 TOTAL APPROPRIATIONS 0.00 OTHER FINANCING USES Transfers Out: (Function 9700) To General Fund 910 To Debt Service Funds 920 To Capital Projects Funds 930 To Special Revenue Funds 940 To Internal Service Funds 970 To Enterprise Funds 990 Total Transfers Out TOTAL OTHER FINANCING USES 0.00 Fund Balance, June 30, TOTAL APPROPRIATIONS, OTHER FINANCING 0.00 USES, AND FUND BALANCE 0.00 ESE 139

67 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION X. ENTERPRISE FUNDS Page ESTIMATED REVENUES Account Self Insurance Self Insurance Self Insurance Self Insurance Self Insurance Other Other Number Totals Consortium Consortium Consortium Consortium Consortium Enterprise Enterprise OPERATING REVENUES: Charges for Services Charges for Sales Premium Revenue Other Operating Revenue Total Operating Revenues NONOPERATING REVENUES: Interest, Including Profit on Investment Gifts, Grants, and Bequests Other Miscellaneous Local Sources Loss Recoveries Gain on Disposition of Assets Total Nonoperating Revenues Transfers In: From General Fund From Debt Service Funds From Capital Projects Funds From Special Revenue Funds Interfund Transfers (Enterprise Funds Only) From Permanent Fund From Internal Service Funds Total Transfers In Net Assets, July 1, TOTAL OPERATING REVENUES, NONOPERATING REVENUES, TRANSFERS IN, AND NET ASSETS ESTIMATED EXPENSES Object OPERATING EXPENSES: (Function 9900) Salaries Employee Benefits Purchased Services Energy Services Materials and Supplies Capital Outlay Other Expenses (including depreciation) Total Operating Expenses NONOPERATING EXPENSES: (Function 9900) Interest Loss on Disposition of Assets Total Nonoperating Expenses Transfers Out: (Function 9700) To General Fund To Debt Service Funds To Capital Projects Funds To Special Revenue Funds Interfund Transfers (Enterprise Funds Only) To Permanent Fund To Internal Service Funds Total Transfers Out Net Assets, June 30, TOTAL OPERATING EXPENSES, NONOPERATING EXPENSES, TRANSFERS OUT, AND NET ASSETS ESE 139

68 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2010 SECTION XI. INTERNAL SERVICE FUNDS Page ESTIMATED REVENUES Account Consortium Other Internal Number Totals Self Insurance Self Insurance Self Insurance Self Insurance Self Insurance Programs Service OPERATING REVENUES: Charges for Services ,210, ,210, Charges for Sales Premium Revenue ,594, ,594, Other Operating Revenue ,259, ,259, Total Operating Revenues 186,063, ,853, ,210, NONOPERATING REVENUES: Interest, Including Profit on Investment , , Gifts, Grants, and Bequests Other Miscellaneous Local Sources , , Loss Recoveries Gain on Disposition of Assets Total Nonoperating Revenues 480, , Transfers In: From General Fund From Debt Service Funds From Capital Projects Funds From Special Revenue Funds Interfund Transfers (Internal Service Funds Only) From Permanent Fund From Enterprise Funds Total Transfers In Net Assets, July 1, ,415, ,443, (27,774.31) TOTAL OPERATING REVENUES, NONOPERATING REVENUES, TRANSFERS IN, AND NET ASSETS 196,959, ,777, ,182, ESTIMATED EXPENSES Object OPERATING EXPENSES: (Function 9900) Salaries ,364, , ,854, Employee Benefits 200 8,346, , ,169, Purchased Services 300 1,905, ,747, , Energy Services Materials and Supplies , , Capital Outlay Other Expenses (including depreciation) ,839, ,839, Total Operating Expenses 186,469, ,287, ,182, NONOPERATING EXPENSES: (Function 9900) Interest Loss on Disposition of Assets Total Nonoperating Expenses Transfers Out: (Function 9700) To General Fund To Debt Service Funds To Capital Projects Funds To Special Revenue Funds Interfund Transfers (Internal Service Funds Only) To Permanent Fund To Enterprise Funds Total Transfers Out Net Assets, June 30, ,489, ,489, TOTAL OPERATING EXPENSES, NONOPERATING EXPENSES, TRANSFERS OUT, AND NET ASSETS 196,959, ,777, ,182, ESE 139

69 School Taxes Tax Authority As provided by state law, the School District is a separate taxing authority. School district millage rates are comprised of two components: state law and local board. The state law portion is the millage rate set by the legislature, also called the Required Local Effort (RLE). Local board property taxes are maximum millage rates set by law that school boards are allowed to levy. Millage Rates & Education Funding For Palm Beach County, school taxes are a significant portion of real estate taxes. The State of Florida uses a combination of state sales tax revenues and local real estate property taxes to fund education. Since Palm Beach County has a large real estate tax base, our property taxpayers shoulder much of the cost of K-12 education in Palm Beach County. Of the total $1.2 billion provided to Palm Beach County Schools via the Florida Education Funding Program (FEFP) for , local real estate taxes will contribute $871 million, or 73%. The statewide average local contribution is 50%. Property Values Fall The taxable value of property in Palm Beach County experienced double digit growth from 2001 through In 2007, however, the growth rate fell to 5.57% and in 2008 and 2009 the taxable value fell by 1.17% and 11.17%, respectively. The total taxable value for the current year is decreasing by $18.8 billion, from $168 billion in 2008 to $149 billion in Revenue Collections Lower With heavy reliance on property tax revenues to finance K-12 education, the state raised the required local effort (RLE) millage by 12% in order to generate enough funding, increasing the millage rate from in 2008 to for Even with this increase, revenues generated by the RLE are dropping by an estimated $4.1 million. In addition to the increase in state required local effort, the local board millage rate structure changed significantly from 2008 to The allowable base capital millage rate was decreased from 1.75 mills to 1.50 mills, following a reduction from 2.0 mills to 1.75 mills for To offset this second decrease in capital millage, the legislature provided local boards with the flexibility to levy a discretionary tax and a critical needs tax, to be used for operating or capital needs. The board is exercising the discretionary option to assess a total capital millage of mills and.65 mills for operating needs. The mills will levy $262.4 million for capital needs, down from $279.7 million levied for Total Millage The total millage rate for 2009 tax year is mills, up from mills for This increase, assessed on a smaller tax base, will generate $25.5 million less in revenues than in The millage rate needed to generate the same tax proceeds as 2008 is mills. The assessed millage is less than the rolled back rate. The current millage rate of mills will generate taxes of $ per $100,000 of assessed property value. A homeowner with an assessed value of $125,000 and eligible for the homestead exemption of $25,000 will pay $73.20 more in school taxes than last year. For many homeowners, property values have dropped and the therefore their taxes will be lower than last year, even with the millage rate increase.

70 COMPARISON OF PALM BEACH COUNTY GROSS TAXABLE VALUE Comparison of Taxable Value $180 $170 $160 $150 $140 Billions $130 $120 $110 $100 $90 $ Year % Gross Incr/(Decr) Incr/(Decr) Tax Taxable As Compared to As Compared to Year Value * Prior Year Prior Year 2005 $130,262,743,363 $18,772,900, % ,252,193,452 30,989,450, % ,229,136,344 8,976,942, % ,237,902,004 (1,991,234,340) -1.17% 2009 $149,448,533,249 ($18,789,368,755) % * Gross Taxable Value as of budget adoption. taxable value history graph FY10.xlsx

71 COMPARISON OF TO MILLAGE RATES Comparison of Millage Rates Mills Debt Service Critical Capital Outlay Needs Disc. Capital Outlay Capital Add'l Discretionary Discretionary Operating Required Local Effort Millage Millage Increase/ Rate Rate (Decrease) Non-Voted Millage: Required Local Effort Discretionary Operating Additional Discretionary (0.1050) Capital (0.2500) Discretionary Capital Outlay Critical Capital Outlay Needs Sub-Total Non-Voted Voted Millage: Debt Service Total Voted & Non-Voted Millage TOT-MILLAGE-FY10

72 COMPARISON OF TO MILLAGE AND ROLLED BACK RATE Millage Comparison Required Local Effort Discretionary Operating Addl. Discretionary Capital Discretionary Capital Outlay Critical Cap Outlay Needs Debt Service % Incr/(Decr) Rolled Back As Compared To Millage Millage Millage Rolled Back Rate Rate Rate Millage Rate Taxable Value $167,717,027,370 * $149,448,533,249 ** (10.89%) Non-Voted Millage: Required Local Effort (0.21%) Discretionary Operating % Additional Discretionary (100.00%) Capital (23.62%) Discretionary Capital Outlay Critical Capital Outlay Needs Sub-Total Non-Voted (1.90%) Voted Millage: Debt Service Total Voted & Non-Voted Millage (1.90%) * Final Certification of Taxable Value for ** Certification of School Taxable Value 7/1/09. ES-MILL-FY10

73 COMPARISON OF HOMEOWNER PROPERTY TAXES TAX YEAR 2008 TO Tax Year 2009 Tax Year Sample Sample Home Home Assessed Value $125,000 $125,000 Homestead Exemption 25,000 25,000 Taxable Value $100,000 $100,000 Millage Taxes Millage Taxes State Law: Required Local Effort $ $ Local Board: Discretionary Operating $ $65.00 Additional Discretionary Capital Projects Discretionary Cap. Outlay Critical Capital Outlay Needs Subtotal Local Board: $ $ Total State & Local $ $ Debt Service Total $ $ Increase from prior year due to increase in millage rates: $73.20 * Of the $73.20 increase, $58.50 is levied by the state and $24.98 is levied by the School Board. house tax FY10.xlsx

74 SAMPLE TAX BILL NOTICE OF PROPOSED PROPERTY TAXES AND PROPOSED OR ADOPTED NON-AD VALOREM ASSESSMENTS Property Control No. XX-XX-XX-XX-XX-XXX-XXXX 2009 PROPOSED AD VALOREM TAXES DO NOT Legal Description of Property: The taxing authorities which levy property taxes against your property will soon hold PUBLIC HEARINGS to adopt PAY SAMPLE HOME budgets and tax rates for the next year. THIS IS The purpose of these PUBLIC HEARINGS is to receive opinions from the general public and to answer questions on t "NOT" proposed tax change and budget PRIOR TO TAKING FINAL ACTION. A BILL Each taxing authority may AMEND OR ALTER its proposal at the hearing. TAXING YOUR PROPERTY YOUR TAXES THIS YEAR A PUBLIC HEARING ON THE PROPOSED YOUR TAXES THIS AUTHORITY TAXES IF PROPOSED BUDGET TAXES AND BUDGET WILL BE HELD: YEAR IF NO BUDGET LAST YEAR CHANGE IS MADE CHANGE IS MADE PB COUNTY PALM BEACH COUNTY (561) FIRE MSTU /08 6:00 PM 301 N. OLIVE AVNUE 6TH FL LIBRARY WEST PALM BEACH PUBLIC SCHOOLS PBC SCHOOL BOARD (561) By State Law /9 5:05 PM 3300 FOREST HILL BLVD By Local Board WEST PALM BEACH CITY WELLINGTON (561) /15 7:00 PM GREENBRIAR BLVD. WELLINGTON SFWMD SO FLA WATER MGT DIST (561) EVERGLADES 9/9 5:15 PM 3301 GUN CLUB ROAD CONST. PROJ WEST PALM BEACH Independent Special districts F.I.N.D FLA INLAND NAVIG DIST (561) /24 6:00 PM 56 N BROADWAY ST FELLSMERE CHILD SERV CHILDRENS SVC COUNCIL (561) /10 6:00 PM 2300 HIGH RIDGE ROAD BOYNTON BEACH HEALTH PBC HEALTH CARE DIST (561) /10 5:15 PM 324 DATURA ST SUITE 401 WEST PALM BEACH Voter aproved Debt Payments COUNTY DEBT SCHOOL DEBT LIBRARY DEBT Total Ad Valorem 1, , , Property Taxes COLUMN 1 COLUMN 2 COLUMN 3 IF YOU FEEL THE MARKET VALUE OF YOUR PROPERTY IS YOUR PROPERTY YOUR PROPERTY INACCURATE OR DOES NOT REFLECT FAIR MARKET VALUE, See Reverse Side For Explanation VALUE LAST YEAR VALUE THIS YEAR CONTACT YOUR PROPERTY APPRAISER AT: Agriculture (561) EXPLANATION: See Reverse Side for Explanation 125,000 MARKET VALUE 125,000 GOVERNMENTAL CENTER - 5th FLOOR Commercial (561) ,000 ASSESSED VALUE 125, N. OLIVE AVE. Exemptions (561) ,000 EXEMPTIONS 25,000 WEST PALM BEACH, FLORIDA Residentail SEE INSERT 100,000 TAXABLE VALUE 100,000 By State Law - ($548.50) This portion of the Palm Beach Schools Tax Levy is State mandated. The millage rate of 5.485mills is set by the State. By Local Board - ($249.80) This portion of the Palm Beach Schools Tax Levy is determined by the School Board. The millage rate is mills. By Voter Approval - ($0.00) The District has retired the remaining debt from the 1987 voter-approved Bond Referendum. Note: Additional $25,000 homestead exemption does not apply to School District levies. IF THE PROPERTY APPRAISER'S OFFICE IS UNABLE TO RESOLVE THE MATTER AS TO MARKET VALUE, YOU MAY FILE A PETITION. PETITION FORMS ARE AVAILABLE FROM THE COUNTY PROPERTY APPRAISER'S OFFICE. YOUR PETITION MUST BE FILED WITH THE CLERK OF THE VALUE ADJUSTMENT BOARD ON OR BEFORE: 09/14/09 5:00 PM AT 301 N. OLIVE AVNUE, WEST PALM BEACH, FLORIDA 33401

75 MILLAGE RATES AND HOMEOWNER PROPERTY TAXES Five Year History Sample Homeowner Property Taxes Based on an Assessed Value of $125,000 with a $25,000 Homestead Exemption: Assessed Value Homestead Exemp Taxable Value $125,000 25,000 $100, Millage Taxes Millage Taxes Millage Taxes Millage Taxes Millage Taxes Required Local Effort $ $ $ $ $ Discretionary Operating Additional Discretionary Capital Projects Discretionary Capital Outlay Critical Capital Outlay Needs NON-VOTED $ $ $ $ $ Debt Service NON-VOTED & VOTED $ $ $ $ $ Note: The Millage Rate reflects the amount of Taxes per $1,000 of Taxable Value. ESTIMATED PROPERTY TAX LEVIES AND COLLECTIONS Total Palm Beach County Gross Taxable Value * $130,262,743,363 $161,252,193,452 $170,229,136,344 $168,237,902,004 $149,448,533,249 Property Taxes Levied Tax Collections ** Required Local Effort Discretionary Operating Additional Discretionary Capital Projects Discretionary Capital Outlay Critical Capital Outlay Needs Debt Service Total Collections $1,055,909,798 $647,210,440 63,112,299 17,819, ,499,212 27,472,413 $1,003,114,307 $1,269,377,267 $1,252,205,527 $1,219,893,027 $1,193,047,641 $779,581,792 $767,026,954 $782,827,782 $778,738,945 78,126,688 82,476,017 79,593,351 92,284,469 17,310,423 16,656,921 16,781, ,379, ,435, ,695, ,964,160 13,913,658 35,494,027 24,510,333 $1,205,908,404 $1,189,595,251 $1,158,898,376 $1,133,395,259 * Gross Taxable Value as of budget adoption. ** Based upon 95% collectability of Palm Beach County's Gross Taxable Value. tax 5 year history FY10.xlsx

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78 General Fund The General Fund is used to account for all financial activities not required to be reported in another designated fund. By law, schools are required to report grants, food service, debt service, capital projects and internal service operations in separate funds. The day-to-day operation of school centers, area offices and central offices is accounted for in the General Fund. Included are costs for employee salaries and benefits, textbooks, supplies, equipment, utilities, transportation and other expenses for the direct operation of schools and departments. The General Fund budget for is $1,376,925,796, a $91.8 million decrease over the budget. The budget is allocated to the following functions: The State of Florida received state stabilization funding to assist with maintaining education funding. They chose to apply the funding to the FEFP formula. The state funding portion of the formula for Palm Beach County schools contains $60,872,023. The infusion of these funds allowed the state to maintain level funding for education. Without this funding, K-12 education would have faced further budget reductions. While these funds are calculated as part of the FEFP funding formula, the funding is reported as special revenue because it is a federal grant. Funding Earmarks The state designates a large portion of FEFP funds for specific purposes, restricting the District s discretionary use of the funds. For , $411,793,827 is earmarked for class size reduction, Exceptional Student Education, Supplemental Academic Instruction, instructional materials, transportation, reading and other specific uses. These earmarks represent 34% of the district s total operating budget. Revenue Forecasting Revenue forecasting focuses on student enrollment projections and funding sources. Student Enrollment FEFP Funding The Florida Education Finance Program (FEFP) provides the funding for General Fund expenditures. The funding formula utilizes a combination of state and local funds to fund education. For , FEFP funds provided to Palm Beach County total $1,192,834,248. Of that amount, the state is funding $321,810,834, and local real estate taxes are funding $871,023,414. Under the State s education budget, Palm Beach County property taxpayers fund more than 73% of the county s education costs. American Recovery and Reinvestment Act The Florida Education Finance Program bases financial support for education upon individual student participation in a particular educational program. FEFP funds are generated by multiplying the number of full-time equivalent (FTE) students in each of the educational programs by cost factors to obtain weighted FTEs. Weighted FTEs are then multiplied by the base student allocation plus the district cost differential to determine the state and local FEFP funds. Program cost factors are determined by the Legislature and represent relative cost differences among the FEFP programs. Sales Tax Revenue Even though Palm Beach does not receive a large amount of funding from the state s sales tax