Funding & Budgeting Overview May 2, 2012 Seminole County Public Schools

Transcription

1 Funding & Budgeting Overview May 2, 2012 Seminole County Public Schools

2 Funding Overview Where does the money come from?

3 Types of Funds Operating Funds Capital Outlay Funds Federal Funds

4 Operating Funds

5 Operating Funds FEFP Funds State Funds Primarily generated from the 6% State sales tax. Local Funds Generated through local property taxes. Other Local Funds

6 FEFP Funds

7 FEFP Formula Funding FEFP Funds Categorical Funds Lottery Funds

8 How do we get our share of the State Formula Funds? FEFP Formula Florida Education Finance Program Fairly Complicated Formula

9 FEFP Formula FTE X Program Cost Factor = WFTE Full Time Equivalent Weighted FTE WFTE X BSA X DCD Base Student Allocation District Cost Differential = Base Funding

10 FEFP Formula (Continued...) Base Funding Declining Enrollment Supplement + + Sparsity Supplement Mills +.25 Mills Discretionary Compression + Safe Schools + Reading Program Supplement + Academic + Instruction (SAI) ESE Instructional Guaranteed + Materials Allocation + Teacher + Lead Student Transportation + Class Size Reduction + (Categorical) Lottery Funds = State and Local FEFP Formula Funds

11 Lottery Funds

12 Lottery Funds Discretionary Lottery School Recognition Funds (A+ Funds)

13 65% 63% 61% 59% 57% 55% Education's Share of State General Revenue % L o t t e 53% r y 51% 49% 54%

14 Local Revenue Property Taxes Other Local Revenue (Interest Earnings, and Other miscellaneous items.)

15 Local Property Taxes Required Local Effort - No Local Control mills (State Legislature sets rate) Discretionary - Local Option, maximum set by State mills (maximum allowed) Critical Operating Millage Voter Approval mills (not levied) Capital Improvement - Local Option, maximum set by Statute mills (maximum allowed)

16 Required Local Effort Required Local Effort (RLE) for each District is the minimum amount of property taxes the District must assess in order to receive state funding (participate in the FEFP Funding). The RLE is set by the Legislature in the Appropriations Act each year.

17 Base Student allocation Fiscal Year BSA Diff BSA vs , (284.50) , (284.50) , (45.87) , , , , , , , , , (103.76) ,582.98

18 Seminole County Public Schools Millage Rate History Seminole County Public Schools - Millage Rate History Fiscal Year By State Law Local Board Debt Service Total Millage Rate Millage Decrease Since : % Decrease Since % -16.5% % -14.5%

19 Seminole County Public Schools State Formula Funding Operating Budget (Dollars in Millions) $469 $ $439 $429 $436 $434 $430 $432 With Federal Stabilization Funds $410 $414 $412 $409 $395 WithoutFederal $386 $387 Stabilization Funds Cut - $15.7 Cut - $14.7 Cut - $9.9 Increase $7.1 Cut - Cut - Increase Cut - $1.6 $4.5 $1.9 $45.7 Increase $1.1 Increase $ Mid Year Mid Year Mid Year Mid Year Mid Year Total $73.9 Cut Note: The $73.9 million represents an overall reduction of 13% in per student funding. The per student funding dropped from $7,130 to $6,205, a total of $925. Of the $73.9 million reduction, $14.3 million was due to declining enrollment. (Please Note : The data is based on the Conference Report of the FEFP) Updated

20 Where Does The Money Go?

21 Where Does The Money Go?

22 Where Does The Money Go?

23 Where Does The Money Go?

24 SCPS Operating Budget (Est.) (Est.) Net Recurring Deficit ($19,840,183) ($19,840,183) ($19,840,183) Funding Increase State Formula Revenue $7,331,854 $9,257,263 (House Proposal) (Final Conference Committee) One time Budget Savings Instructional lmaterial $2,500, Education Job Fund $13,328,674 Early Retirement Reinsurance Program $500,344 Use of Fund Balance $3,511,165 Retirement Increase ($6,730,000) ($1,233,000) (SB 2100) ( Estimate) Other Cost Increases/Revenue Reductions* ($4,414,865) Net Estimated Deficit $0 ($19,238,329) ($16,230,785) (Work Session Book , Page 5, Budget Deficit ) *Cost increases include (1) () State categorical programs, $1M, M,() (2) charter schools, $.5M, (3) reserve for further declining enrollment, $1.3M and other miscellaneous increases of $1M. The main revenue reduction is due to a reduction in anticipated interest earnings, $.6M. Revised

25 SCPS Budget Issues for Budget issues which need to be considered in the budget development process for include the following: 1. The use of non recurring fund balance for recurring budget costs, which will potentially result in the need for further recurring budget cuts for the following year ( ). 2. The possible addition of two new charter schools, proposed at 1,362 students, with revenue of $7.2 million. 3. The budget impact of State end of course testing requirements. 4. The budget impact of SB 736 (teacher performance). 5. The possible sequestration in January 2013 of Federal funding by Congress (potential reduction estimated to be from 8.5% to 9.5%). 6. Potential fuel cost increases. 7. The possible impact on the operating budget of IDEA Maintenance of Effort requirements. 8. The budget impact of the possible veto of HB 5005 (retirement), with a cost to SCPS of $5.5 million. 9. The impact of the loss of the Race to the Top Funding ($4,959,061 over four years), which ends on June 30, 2014.

26 Potential Revenue Options Voter approval of an additional mill for operating purposes $25 Million per year for up to 4 years Cost to average taxpayer $130 per year * Nextelections elections August 14, 2012 (notification May 8, 2012) or November 6, 2012 (notification late August 2012) Cost to SCPS 0 Voter approval of a ½ cent sales tax for construction, renovation, repair and technology $28 Million per year Next elections August 14, 2012 (notification May 8, 2012) or November 6, 2012 (notification late August 2012) Cost to SCPS 0 Allow Charter County Transportation System Surtax (1 cent sales tax) to cover school transportation costs ** * Based on the average home assessed value of $ with a homestead exemption of $ * Based on the average home assessed value of $155,000 with a homestead exemption of $25,000 ** Requires both legislative and voter approval

27 Capital Outlay Funds

28 $120 CAPITAL OUTLAY REVENUE State vs. Local Revenue Source (CIP) 2005 to 2011 $100 $8 $29 $20 $4 $80 STATE llions $60 LOCAL Mi $40 $99 $83 $85 $90 $1 $3 $0 $20 $49 $43 $41 $ * ** *Budgeted

29 Capital Outlay Source of ff Funds CO& DS 0.7% Sales Tax 08% 0.8% Impact Fees 5.8% Gasline Tax 1.5 Mill Refund Property Taxes 0.2% 92.2% Interest 0.2%

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31 COP s ISSUES Description Projects Included Type Series 1994A Certificates Winter Springs High School New Original Amount Issue $80,230,000 Educational Services Center New Outstanding Amount $38,565,000 South Seminole Middle School Replacement (Refunded by 1997A and then by 2007A Series) Lake Howell High School Remodeling Wicklow Elementary School New Seminole High School (Health Academy) Additions (35) 65-passenger Buses (5 with wheelchair lifts) New (10) 88-passenger Buses New Series 1994B Certificates Carillon Elementary School New Original Amount Issue $33,165,000 Highlands Elementary School New Outstanding Amount $19,100,000 Teague Middle School Replacement (Refunded by 1995A and then by 2005A Series) Series 1998A Certificates Lake Brantley High School Remodeling Original Amount Issue $76,870,000 Goldsboro Elementary School Remodeling Outstanding Amount $45,310,000 Millennium Middle School Replacement (Refunded by 2006B) Woodlands Elementary School Remodeling Software System - Network New Series 1999A Certificates Districtwide Telecommunications Project New Original Amount Issue $22,650,000 Districtwide Finance/Business System New Outstanding Amount (Paid Off) Districtwide Human Resource/Payroll System New Student Information and Testing System New Districtwide Technology Infrastructure And Equipment New Rock Lake Middle School Remodeling

32 COP s ISSUES Description Projects Included Type Series 2003A Certificates Lyman High School Remodeling Original Amount Issue $29,315,000 Chiles Middle School New Outstanding Amount (Paid Off) Series 2003B Certificates Hagerty High School New Original Amount Issue $36,015,000 Midway Elementary School Replacement Outstanding Amount $32,365, Series 2004A Certificates Tuskawilla Middle School Replacement Original Amount Issue $35,020,000 Crystal Lake Elementary New Outstanding Amount $32,635,000 Series 2006A Certificates Oviedo High School Remodeling Original Amount Issue $27,295,000 Seminole High School (Buildings 14 & 16) Remodeling Outstanding Amount $25,735,000 (43) 71-passenger Buses (4 with wheelchair lifts) New Series 2009A Certificates Endeavor Special Needs Center Replacemnet Original Amount Issue $20,675,000 School Bus Parking Facility New Outstanding t Amount $19,330, (50) 71-passenger Buses New Journey Academy Replacemnet

33 New Schools versus SCPS Total Enrollment

34 SCPS CAPITAL BUDGET ISSUES FOR Pre 1990 building systems have exceeded their service life (HVAC, Roofs, etc.) Aging school bus fleet (161 buses GT 10 years old) Computer-based testing expansion District telephone/voice mail systems discontinued by manufacturer 7 years ago $.25 Sales Tax has expired 1.5 Mill Property Taxes expected to decline 3%

35 Questions & Answers