Budget Overview. Budget Workshop June 27, 2013

Transcription

1 Budget Overview Budget Workshop June 27, 2013

2 Presentation Outline Budget Assumptions Funding Data State-Wide Brevard Enrollment Projections Possible Millage Budget Info Operating Capital Format of Budget Books Next Steps Q&A 2

3 Operating Budget Assumptions Assumes Proposed Budget Cuts and Revenue Enhancements as adopted by the Board on March 12, 2013 For the Operating Budget, assumes a tax roll increase of 2.91% as reflected in the 1st FEFP Calculation as adopted by the Legislature on March 6 (2nd Calculation available mid- July) For the Capital Budget, assumes a tax roll increase of 4.29% as reflected in the preliminary tax roll estimate by the Property Appraiser Assumes the Board will continue to move 0.25 mills from the capital budget to the operating budget 3

4 Change in FTE (Students) STATE TOTAL: Source: Final Conference Report for SB1500 dated April 29,

5 K-12 Budget Contains Student Growth Projections used by the State are (1.31%) less than Brevard s Request due to Recalibration of FTE State-Wide FTE has been adjusted to reflect the application of the revised FTE calculation methodology which limits the FTE a student can earn to a maximum of 1.0 In the past, School Districts and Florida Virtual Schools (FLVS) each earned a portion of the student s FTE with the total of the parts being greater than 1.0 Brevard projections submitted to the State were flat (-3.49 FTE or %) does not reflect Recalibration of FTE State projected a decrease of 5,481 FTE (or %) does reflect Recalibration of FTE 5

6 K-12 Budget Contains Total Increase Statewide is $1.054B (or +6.12%) State-wide average per student = $6, (+$404.04) Brevard average per student = $6, (+$410.83) Brevard s Funding Adjustments by Source: Elimination of the 0.25 Critical Needs Operating Millage & Associated Compression Continuation of Compression for the Mills 6

7 Statewide K-12 Budget Contains Class Size Reduction (CSR) of $2.98B Includes $17,907 increase in CSR 28.43% of total state funding for K % of total state and local funding for K-12 State still allowing flexibility in use of CSR dollars Again, no State allocation for capital needs related to CSR Teacher Salary Increase Allocation of $480m 4.59% of total state funding for K % of total state and local funding for K-12 7

8 Change in Funding STATE TOTAL: Source: Final Conference Report for SB1500 dated April 29,

9 District Cost Differential 13 Districts Over Rank District DCD 1 Hillsborough Palm Beach Monroe Broward Collier Lee Manatee Miami-Dade Duval Brevard Orange Sarasota Martin Source: FEFP 1 st Calculation 9

10 FEFP Funding Issues Base Student Allocation (BSA) $3, Since start of decrease of $ or -8.03% Since increase of $ or +4.73% District Cost Differential (DCD) Increase of or +0.29% BSA times DCD $3, Since start of decrease of $ or -5.76% Since increase of $ or +5.03% 10

11 Base Student Allocation & District Cost Differential Fiscal Year BSA DCD BSA * DCD Difference , , , , , , , , * 4, , , , * 3, , , , , , , , , , ^ 3, , * 3, , Source: Final FEFP Calculation for each year except as follows: * 1 st FEFP Calculation ^ 4 th FEFP Calculation 11

12 Total Operating Budget Funding Source: FEFP 4 th Calculation (*1 st Calculation Used for ) Fiscal Year Total Funds Difference $498,194, $516,228,580 $18,034, $492,861,236 -$23,367, # $492,531,417 -$329, # $490,705,029 -$1,826, $446,187,575 -$44,517, $457,624,624 $11,437, * $480,234,884 $22,610,260 # Included Federal ARRA Dollars (American Recovery and Reinvestment Act) 12

13 Brevard s Ranking in Funding Districts Ranked Highest to Lowest Fiscal Year $ per FTE th th th th rd th th Fiscal Year $ per FTE th rd th th th nd nd Source: FEFP Final Conference Report (1 st Calculation) for each year 13

14 Total Revenue per FTE - Operating Budget (Excluding Fund Balance, but Including State Fiscal Stabilization & Ed Jobs Funds) 8,000 7,500 7,000 General Fund Without Fund Balance 7, , , , , , ,500 6, , ,000 6, , ,500 5,000 5, , , , , , Source: Data from Annual Financial Reports, except estimated and projected Note: Both & have been adjusted by $ to reflect the receipt & use of the Federal Ed Jobs Funds

15 Change in Funding STATE TOTAL: Source: Final Conference Report for SB1500 dated April 29,

16 Funding Summary Spending Requirements Amount % Increase in FEFP Revenue 22,610, Teacher Salary Increase Allocation -12,608, Sub-Total $10,002, Instructional Materials (Legislative Increase) -225, Teacher Lead Allocation (Legislative Increase) -329, Sub-Total $9,446, Retirement Increase over Original $3m Estimate -2,589, Sub-Total $6,856, Recurring Board Contribution for Health Insurance ($20 per month) -1,600, Sub-Total $5,256, Dual Enrollment TBD TBD Charter School Growth TBD TBD Grand Total TBD TBD 16

17 Change in FTE (Students) STATE TOTAL: Source: Final Conference Report for SB1500 dated April 29,

18 Total FTE (Students) Source: FEFP 4 th Calculation (*1 st Calculation Used for ) Fiscal Year FTE Difference , , , , , , , , * 69,

19 Student Growth/Decline Year Membership Number Percent , , , ,912 1, ,216 1, , , , ,000-1, , , , , * 72, * Projected for

20 History of Student Membership Year Total District Charters ,658 69,608 1, ,625 70,212 1, ,533 70,957 1, ,912 72,150 1, ,216 73,099 2, ,062 73,230 2, ,676 72,210 3, ,235 72,215 3, ,000 70,951 3, ,352 70,152 3, ,913 69,459 3, ,906 70,320 2, ,526 69,997 2, * 72,743 69,033 3,710 * Projected for

21 Details of Change in Membership Year Total District Charters ,379 1, , , ,235-1, * ,181 * Projected for

22 Students with Parents Working at KSC or CCAFS Historical Totals Year KSC CCAFS Total ,633 1,571 7, ,174 1,565 6, ,025 1,440 6, ,935 1,355 6, ,619 1,231 5, ,941 1,152 5, ,707 1,147 3, , ,432 Note: From to , there has been a decrease of 422 (-10.95%) 22

23 Students with Parents Working at KSC or CCAFS Grade KSC CCAFS Total PreK K Total 2, ,432 23

24 Brevard s Tax Roll Growth & Decline Fiscal Year Tax Roll % Change ,910,272, ,924,947, % ,316,371, % ,695,633, % ,087,435, % ,334,959, % ,060,244, % ,311,747, % ,927,287, % ,345,104, % ,725,460, % ,390,012, % ,812,038, % * 27,457,119, % ^ 28,632,714, % Source: Comprehensive Annual Financial Reports (CAFR), except for the following: * Adjusted Final Taxable Value as of March 15, 2013 ^ Notice of Estimate for the 2013 Tax Roll as of May 30,

25 Brevard s Tax Roll Growth & Decline Fiscal Year Tax Roll % Change ,927,287, % ,345,104, % ,725,058, % ,390,012, % ,812,038, % * 26,446,211, % # 27,206,326, % & 27,502,891, % > 27,457,119, % < 28,485,478, % ^ 28,632,714, % * Taxable Value on FEFP 1 st Calculation dated March 6, 2012 # Estimated by Property Appraiser on May 30, 2012 & Certified Taxable Value by Property Appraiser on June 21, 2012 > Adjusted Final Taxable Value as of March 15, 2013 < Property Appraisers Preliminary Estimates dated April 30, 2013 ^ Notice of Estimate for the 2013 Tax Roll dated May 30,

26 History of School Board Millage Levy Fiscal Year Total Millage Difference % % % % % % % % % % % % % % % % Difference Since % Note: Each year the Board has levied the maximum allowed by law without voter referendum. 26

27 Proposed Millage* Operating - Required Local Effort - Local Discretionary - Critical Needs Capital Outlay Total Millage Actual Proposed Increase/ Decrease * * Subject to official certificated tax roll (7/1/13) and DOE recalculations 27

28 Tax on Residential Home Scenario #1 Assumes no change in assessed valuation of $100,000 home Home Value $100,000 Less Homestead Exemption -25,000 Taxable Value of Home $75,000 Taxes Paid in $ Taxes Proposed for * $ Tax Decrease for $28.87 * Subject to official certificated tax roll and DOE recalculations 28

29 Tax on Residential Home Scenario #2 Assumes 1.7% ($1,700) increase in assessed valuation of $100,000 home Home Value $101,700 Less Homestead Exemption -25,000 Taxable Value of Home $76,700 Taxes Paid in $ Taxes Proposed for * $ Tax Decrease for $15.77 * Subject to official certificated tax roll and DOE recalculations 29

30 Preliminary Budget Amended Preliminary Difference % Operating 534,889, ,805,312 6,915, Special Revenue 84,146,027 86,087,061 1,941, Debt Service 43,039,254 42,497, , Capital Outlay 96,619,957 88,480,780-8,139, Enterprise Fund 8,293,039 8,281,799-11, Subtotal 766,987, ,152, , Less Transfers 42,749,603 39,737,919-3,011, Total 724,238, ,414,997 3,176, Internal Service 80,002,105 76,746,328-3,255,

31 Operating Budget Revenue Adopted Preliminary Difference % Federal 2,584,386 2,584, State - FEFP 211,707, ,676,046 15,968, State - Categoricals/Other 92,692,691 91,831, , Local - Property Taxes 174,152, ,203,774-4,948, Local - Other 5,421,037 6,016, , Total Revenue 486,557, ,313,005 10,755, Other Sources 1,299,035 1,299, Fund Balance 59,850,051 43,193,272-16,656, Grand Total 547,706, ,805,312-5,901,

32 Capital Projects Revenues Estimated Preliminary Difference % PECO-New Constructio PECO - Maintenance Other-State 510, , Local Revenue 39,688,252 46,118,106 6,429, Total Revenues 40,198,252 46,628,106 6,429, Other Sources 5,716,796 3,100,000-2,616, Fund Balance 50,704,909 38,752,674-11,952, Total 96,619,957 88,480,780-8,139,

33 Capital Funds vs. Debt $150,000,000 $125,000,000 Last Year Millage Rate at 2.0 Mills $100,000,000 Legislation Changed to 1.75 Mills $75,000,000 Legislative Option to Reduce to 1.50 Mills &Taxable Value Decline of 11.17% $50,000,000 $25,000,000 Taxable Value Decline of 11.80% Taxable Value Decline of 14.13% Taxable Value Decline of 1.1% $

34 Capital Funds vs. Debt $150,000,000 $125,000,000 Last Year Millage Rate at 2.0 Mills $100,000,000 Legislation Changed to 1.75 Mills $75,000,000 Legislative Option to Reduce to 1.50 Mills &Taxable Value Decline of 11.17% $50,000,000 $25,000,000 Taxable Value Decline of 11.80% Taxable Value Decline of 14.13% Taxable Value Decline of 1.29% $

35 Property Tax Roll Percentage Scenarios Fiscal Year Previous Scenarios #1 #2 #3 #4 Current Scenario * * Includes addition of FPL facility, valued between $700 million to $1 billion Scenario #1: District s Estimates (November 2011 II-A Scenario with Tax Roll Updated) Scenario# 2: State s Estimates ( through ) Scenario #3: Best Case Based on Very Optimistic Approach (June 28, 2012) Scenario #4: State s Estimates ( through March 2013) Current Scenario: Revised Best Case Based on Very Optimistic Approach 35

36 Capital Revenue Scenarios 1-5 vs. Debt Based on 1.5 mills and 96% collections 60,000,000 55,000,000 50,000,000 Scenario #1: District's Estimates (November 2011 II-A Scenario w/ Tax Roll Update) Scenario #2: State's Estimates ( through ) Scenario #3: Best Case Based on Very Optimistic Approach (June 28, 2012) Scenario #4: State's Estimates ( through March 2013) Scenario #5: Revised Best Case Based on Very Optimistic Approach Annual Debt Payments (COP + RAN) 4 45,000, ,000,000 35,000,000 1&2 30,000,

37 Current Capital Funding Plan Fiscal Year A B C D E F G Tax Roll (in billions) $ $ $ $ $ $ $ Percentage Change from Prior Year -1.29% 4.28% 7.00% 4.00% 4.00% 5.00% 3.00% Projected Recurring Revenue 3 Tax Revenue estimated at 96% collection $ $ $ $ $ $ $ PECO New Construction Revenue PECO Maintenance Revenue Interest Revenue/Other Miscellaneous Impact Fees CO & DS Revenue Transfer from Operating Non Recurring Trsf from Food Services Projected Total Revenue $ $ $ $ $ $ $ Debt Payment 12 RAN Payment COP Payment Total Debt Payment $ $ $ $ $ $ $

38 Current Capital Funding Plan Fiscal Year A B C D E F G Project Costs 16 ADA/Safety to Life Bus Replacements/Equipment Educational Technology Preventive Maintenance-Facilities Repair at Failure/Preventive Maintenance Other District Projects Capital Renewal Use of Fund Balance Capital Renewal Transfer from Operating Total Project Costs $ $ $ $ $ $ $ Balance Available after Project Costs -$ $ $ $0.000 $0.000 $1.056 $1.003 Beginning Year Fund Balance 26 Carryforward-Restricted for D S Payments Carryforward-Restricted for Encumbrances Carryforward-Restricted for Capital Projects Carryforward-Unrestricted funds Total Beginning Fund Balance $ $ $ $ $ $ $ Estimated Ending Fund Balance

39 Format of Budget Books Provided for comparison purposes Current year being compared to new year : Adopted Budget (9/6/12) Amended Budget (as of 4/30/13) : Preliminary Budget (6/27/13) Percent of total for each column has been included in the book for easy reference. Note: Budget books dating back to are available in the reference section of all Brevard public libraries. 39

40 Format of Budget Books Reminder that new salary object codes are being utilized in the Operating Budget (see page 15) All information will be updated for the First Public Hearing on August 1 st (including certified tax roll, automated labor & est. fund balances) Final year-end budget and expenditures will be provided for final public hearing (September 5 th ) Additional pages still provided for ARRA (Special Revenue Funds) to reflect Race to the Top dollars 40

41 Next Steps DOE to Certify Millage & Provide 2nd FEFP Calculation July 18 or 19 (Revenue & Millage Recalculation) Revise budget based on changes in millage and/or revenues Advertise 1st Public Hearing in Newspaper July 27 First Public Hearing to adopt Tentative Budget & Millage: August 1 at 5:30 p.m. in Board Room Second Public Hearing to adopt Final Budget & Millage: September 5 at 5:30 p.m. in Board Room Workshop on possible November, 2014 Referendum 41

42 Contact Information If you should require additional information, please contact: Judy Preston Associate Superintendent, Financial Services , ext. 600 Karen Strickland Director, Planning, Budgets, and Reporting , ext. 610 Jo Ann Clark Director, Accounting Services , ext. 660 District Website: 42

43 uestions nswers