SUMMARY OF REVENUES AND APPROPRATIONS GENERAL FUND

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1 SUMMARY OF REVENUES AND APPROPRATIONS GENERAL FUND REVENUES FY FY FY ACTUAL PROJECTED TENTATIVE RESULTS RESULTS BUDGET FEDERAL $ 19,065,815 $ 16,829,410 $ 17,543,686 STATE: Florida Education Finance Program $ 561,608,872 $ 610,376,885 $ 727,704,846 Workforce Development 82,663,970 81,948,077 80,533,261 Other Categorical Programs 416,421, ,218, ,088,750 Miscellaneous State Revenue 2,690,459 3,052,965 3,820,885 Total State Revenues $ 1,063,385,150 $ 1,120,596,849 $ 1,237,147,742 LOCAL: Property Taxes $ 1,162,100,724 $ 1,224,492,570 $ 1,279,255,610 Miscellaneous Local Revenues 98,685,607 85,051,594 74,784,625 Total Local Revenues $ 1,260,786,331 $ 1,309,544,164 $ 1,354,040,235 Transfers From Capital Outlay $ 138,787,613 $ 137,181,034 $ 148,181,034 Non-Revenue Sources (1) $ 25,801,974 $ - $ - Fund Balance From Prior Year $ 221,712,200 $ 144,143,037 $ 138,479,970 TOTAL REVENUES & OTHER SOURCES $ 2,729,539,083 $ 2,728,294,494 $ 2,895,392,667 APPROPRIATIONS Salaries $ 1,563,395,472 $ 1,548,199,440 $ 1,582,693,239 Fringe Benefits 487,805, ,127, ,942,347 Non-Salary 522,195, ,952, ,639,319 Total Appropriations $ 2,573,396,046 $ 2,652,278,961 $ 2,801,274,905 OTHER FINANCING USES Transfers to Other Funds $ 12,000,000 $ 803,633 $ 2,687,361 FUND BALANCE - END OF YEAR Non-Spendable (2) $ 6,363,499 $ - $ - Restricted (3) 5,146, Assigned (4) 51,758,393-16,218,501 Unassigned (5) 80,874,967 75,211,900 75,211,900 Total Fund Balance - End of Year $ 144,143,037 $ 75,211,900 $ 91,430,401 TOTAL APPROPRIATIONS, TRANSFERS & FUND BALANCE - END OF YEAR $ 2,729,539,083 $ 2,728,294,494 $ 2,895,392,667 NOTES: (1) Non-revenue sources include: Capital Leases, Sale of Equipment and Insurance Recoveries. (2) Non-Spendable Fund Balance consist of prepaid insurance and inventory. (3) Restricted Fund Balance includes state required carryover programs (i.e. categoricals). (4) Assigned Fund Balance for FY includes amounts designated for estimated rebudgets, obligations and encumbrances. These amounts are reflected as appropriations in FY and FY The amount shown under Assigned Fund Balance for FY is soley related to a Tax Collection reserve. (5) Unassigned Fund Balance reflects the amount of Contingency for all years shown. 4-1

2 A DECADE OF THE GENERAL FUND REVENUE & CONTINGENCY RESERVE The General Fund is the revenue source that supports the preponderance of the District s operations. The cost of providing a world class education to our students has grown consistently over the past decade; unfortunately however, the funding of the general fund has not seen the same consistency. After strong growth early in the decade resulting from the property tax bubble, the District lost almost half a billion dollars in two years once that bubble burst. The FY budget represents the first year-over-year increase in six years; it appears as if the darkest times of the Great Recession are finally behind us. $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $- General Fund Revenue & Other Sources Just as the real estate bubble popped and the economy was beginning to sink to its most dire straits in over 50 years, the District found itself in the worst financial condition in its 125 year history. In FY , M-DCPS ended the year with $5M in undesignated/unassigned reserves less than two-tenths of one percent of revenue. In the six years since, the District has made a remarkable recovery and will start FY with the assigned/unassigned reserves over 3% of revenue. Contingency spiked in FY with the liquidation of Education Jobs Bill funds. $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 Contingency Reserve History 4-2

3 MAJOR SOURCES OF REVENUE GENERAL FUND The District derives its operating income from a variety of federal, state and local sources. The major categories of these income sources for the general fund are briefly described below. REVENUE SOURCES $3,200 $2,400 $1,600 $800 Local State Federal $ STATE SOURCES Florida Education Finance Program: The major portion of support is distributed under the provisions of the Florida Education Finance Program (FEFP), which was enacted by the State Legislature in FEFP funds are based on full-time equivalent student enrollment (FTE) through a formula that takes into account (i) varying program costs, (ii) cost differentials among districts, and (iii) a minimum required level of local support. Program cost factors are determined by the State Legislature. The amount of FEFP funds disbursed by the state is adjusted three times during each year to reflect changes in FTE and other variables comprising the formula. To participate in FEFP funding, the District must levy a minimum ad valorem property tax millage for operating purposes which is set annually by the Legislature. For FY , this Required Local Effort (RLE) levy is currently estimated to be mills. This revised millage rate is subject to change on July 19 based on statewide tax rolls certified by the Department of Revenue. State FEFP revenue (excluding categoricals) is estimated to increase by $ million from the current FY budget. The increase is due to 1) the restoring of McKay Scholarships, 2) an decrease of 1,987 K-12 unweighted FTE, 3) a $169 increase to the Base Student Allocation, 4) establishing a Teacher Salary Increase program for $62.8 million and 5) other small changes to the FEFP formula components as well as the District Cost Differential (DCD). Other State revenue decreased by $.78 million due to a $1.41 million decrease in Workforce Development, a decrease of $.13 million in Class Size Reduction as well as a $.76 million increase in other Miscellaneous State revenues. 4-3

4 The following is a graphical depiction of the FEFP formula controlled by the State: The Net State FEFP for the support of school district education activities is derived from Gross State and Local FEFP Dollars in the following manner: 4-4

5 The Gross State and Local FEFP Dollars, less the RLE, result in the Gross State FEFP. Adjustments, whether positive or negative, are determined by the State and then added to obtain the Net State FEFP Allocation. Revision to FTE Reporting: Effective FY , a revised methodology for reporting FTE was established by the Department of Education. The first change was to limit a student s FTE to a maximum of 1.0 across all delivery models including virtual classes. If a student takes a course through the Virtual School (not on MDCPS campus), the course will be counted under the Virtual School first and deducted from the district s FTE. The second change, affecting all students, is the spreading of FTE in weighted programs over the entire school day. In prior years the FTE in weighted programs was calculated as a fraction of 25 hours maximum per week. The fraction is now divided by the total hours the student is in school (typically 30 hours per week) thus shifting FTE out of ESOL, ESE and Career Education to basic programs. State Categorical Programs: These are special program appropriations which supplement other district revenues, but must be expended for purposes established by the Legislature. State categorical funding decreased by $1.54 million in FY due to a decrease in Class Size Reduction of $.13 million and a decrease in Workforce Development program of $1.41 million. The Total State Allocation for the support of school district education activities is derived from the Net State FEFP Allocation in the following manner: The Discretionary Lottery Funds, the Categorical Program Funds, and any Special Allocations are added to the Net State FEFP Allocation to obtain the Total State Finance Program. LOCAL SOURCES The primary source of local revenues is ad valorem real and tangible personal property taxes. School boards are not empowered to levy any other taxes. In addition, the district earns interest on cash invested and collects other miscellaneous revenues. The Florida constitution limits the non-voted millage rate that school boards may levy to 10 mills ($10 per $1,000 of taxable real and personal property value). Chapter 1011, Florida Statutes, further limits the non-voted millage levy for operational purposes to an amount set each year by the State Appropriations Act. Within this limit, each school district, in order to participate in the State's appropriation of FEFP funds for current operations, must levy the millage for "required local effort," which is set each year by the State Legislature. 4-5

6 Effective FY , budgeted revenues from ad valorem taxes are based on applying millage levies at 96 percent of the non-exempt assessed valuation of real and personal property within Miami-Dade County. FEDERAL SOURCES Federal revenue sources are presently projected to increase by $714,276 from the prior year due to an increase in Medicaid reimbursement of $1.3 million offset by a decrease in community school reimbursement from federal sources of $.59 million. 4-6

7 WHERE DOES THE MONEY GO? FY In these lean budget years, the District's spending decisions have been steered by its guiding principles of focusing on student achievement while maintaining fiscal solvency and protecting an effective workforce and taxpayer interests. In keeping with those principles over 95% of the District's resources are spent on school level services. FY Tentative Budget Totals % ($ Millions) SCHOOL LEVEL SERVICES TEACHING $ 1, STUDENT SERVICES TRANSPORTATION SUB-TOTAL - DIRECT SERVICES TO STUDENTS $ 2, CUSTODIAL/SECURITY SERVICES $ SCHOOL ADMINISTRATION COMMUNITY SERVICES TOTAL SCHOOL LEVEL SERVICES $ 2, CURRICULUM SUPPORT INSTRUCTION & CURRICULUM DEVELOPMENT $ INSTRUCTIONAL STAFF TRAINING INSTRUCTIONAL SUPPORT TOTAL CURRICULUM SUPPORT $ BUSINESS SERVICES FISCAL SERVICES [Includes accounting, budget, payroll, $ accounts payable, and cash management] CENTRAL SERVICES [Includes purchasing, personnel, data processing and warehousing services] TOTAL BUSINESS SERVICES $ CENTRAL ADMINISTRATION BOARD OF EDUCATION $ GENERAL ADMINISTRATION GENERAL SUPPORT TOTAL CENTRAL ADMINISTRATION $ DEBT SERVICE TOTAL APPROPRIATIONS $ 2, ENDING FUND BALANCE TOTAL APPROPRIATIONS & ENDING FUND BALANCE $2,

8 WHERE DOES THE MONEY GO? FY APPROPRIATIONS BY FUNCTION 2.2% 0.4% 0.1% 1.8% 20.2% 75.3% Services to Students Other Schools Services Curriculum Support Business Services Central Support Debt Service 4-8

9 GENERAL FUND DETAIL BY SECTION M-DCPS Managed Schools The General Fund budget for M-DCPS managed schools in FY is $1.91 billion. Of that amount over 95% is appropriated for salary expenditures. Overall, the total budget for M-DCPS managed schools is up 2% from prior year adopted budget. This increase is primarily due to the mid-year raise given to teachers (and other bargaining units) in FY , as well as the mandated increase in the FRS rates in FY Only minor adjustments were made in the school allocations from prior year Tentative Budget Employee Full-Time Salary Hourly/ Non-Salary Grand Total Count Overtime/Subs Elementary School Programs 7,103 $ 490,174,071 $ 2,247,908 $ 2,437,844 $ 494,859,823 K-8 Center Programs 2,776 $ 191,846,103 $ 695,303 $ 1,057,180 $ 193,598,586 Middle School Programs 1,530 $ 207,064,537 $ 885,047 $ 1,066,803 $ 209,016,387 Senior High School Programs 2,895 $ 323,033,205 $ 731,226 $ 8,764,956 $ 332,529,387 Bilingual Programs 222 $ 104,963,102 $ - $ 1,282,940 $ 106,246,042 Schools of Choice 4,478 $ 17,919,318 $ 436,564 $ 6,061,840 $ 24,417,722 Alternative Education 421 $ 28,410,168 $ 398,520 $ 5,143,171 $ 33,951,859 Exceptional Student Education 4,600 $ 324,013,346 $ - $ 55,339,133 $ 379,352,479 Career & Technical Education 463 $ 39,565,002 $ - $ 641,748 $ 40,206,750 Adult Education 516 $ 37,531,677 $ 28,751,366 $ 6,031,817 $ 72,314,860 Community Schools 109 $ 6,016,538 $ 19,455,777 $ 1,468,790 $ 26,941,105 Total 25,113 $ 1,770,537,067 $ 53,601,711 $ 89,296,222 $ 1,913,435,000 M-DCPS Schools Budget Five Year History $1,915 $1,913 $1,867 $1,873 $1,

10 Charter Schools The General Fund budget for charter schools is $322 million; this represents an increase over prior year s adopted budget of over 15%, and a 76% increase over the past five years. The vast majority of this budget is an appropriation for the payout of revenue to charter schools. In the state of Florida, public school districts are required to act as the financial flow-through for charter schools residing in their district. In addition, districts are required to provide certain operational and instructional support for these schools. To cover the resulting expenses, districts used to be permitted to collect up to 5% of total revenue for the first 500 students of each existing charter school. However, over the past several years statutes were changed and now districts may only collect the 5% on the first 250 students, and a lesser 2% on the first 250 students at State-defined high-performing charter schools and charter school systems Tentative Budget Employee Count Full-Time Salary Hourly/ Overtime Non-Salary Grand Total Total Charter Schools 16 $ 1,480,573 $ 57,343 $ 320,620,686 $ 322,158,602 $183 Charter Schools Budget Five Year History $224 $245 $278 $

11 State Categorical Programs As discussed earlier in the section, categoricals are special program appropriations which supplement other district revenues, but must be expended for purposes established by the Legislature. The total FY budget for categorical programs is $139,449,406. The reason for the 93% increase from prior year is the addition of the School Salary Increase Allocation. Per Governor Scott s direction, the Legislature allocated $400 million statewide to be used specifically for salary increases to select school-based personnel; last minute change to the legislation has provided local school boards limited flexibility in the use of those funds Tentative Budget Employee Full-Time Salary Hourly/ Non-Salary Grand Total Program Count Overtime Adults with Disabilities 0 $ - $ 1,125,208 $ - $ 1,125,208 DA Summer Academy 0 $ 140,000 $ - $ - $ 140,000 District Bandwidth Support 0 $ - $ - $ 1,501,156 $ 1,501,156 DJJ Supplemental Allocation 0 $ - $ - $ 376,308 $ 376,308 FL School Recognition Program 0 $ 19,667,444 $ - $ - $ 19,667,444 FL Teachers Lead Program 0 $ - $ - $ 5,948,320 $ 5,948,320 Full Service Schools 13 $ 768,000 $ - $ - $ 768,000 Health Services 2 $ 72,960 $ - $ - $ 72,960 Instructional Materials 0 $ - $ - $ 27,498,648 $ 27,498,648 Pre-K Fee Supported 64 $ 4,244,211 $ 574,209 $ 79,280 $ 4,897,700 Reading Program 0 $ - $ - $ 3,392,844 $ 3,392,844 Safe Schools-After School 1 $ 68,987 $ 472,600 $ 109,188 $ 650,775 SFW Individual Training Account 1 $ 77,314 $ 156,787 $ 353,932 $ 588,033 School Salary Increase Allocation 0 $ 62,825,676 $ - $ - $ 62,825,676 Voluntary Pre-K 357 $ 9,090,691 $ 566,963 $ 338,680 $ 9,996,334 Total 438 $ 96,955,283 $ 2,895,767 $ 39,598,356 $ 139,449,406 State Categorical Budgets Five Year History $139 $63 $81 $76 $

12 Central Accounts Central Accounts is where M-DCPS budgets items that are District-wide costs and do not necessarily fit in any one section. The two largest portions of Central Accounts are Utilities and the District s Reserves. The District has grown its contingency reserve more than twenty-fold since the end of FY in spite of the severe economic downturn. Part of the reserves for FY is a $16 million set aside for low tax collections; a distinct possibility given the large variance in the tax roll estimates between the Miami-Dade Property Appraiser and the State s initial assumption in building its budget Tentative Budget Full-Time Salary Hourly/ Non-Salary Grand Total Program Overtime Capital Abatements $ (8,038,536) $ - $ (754,477) $ (8,793,013) Contingency and Other Reserves $ - $ - $ 91,430,401 $ 91,430,401 Equipment Maintenance $ - $ - $ 8,413,114 $ 8,413,114 Leave and Worker's Comp Costs $ 7,679,750 $ - $ - $ 7,679,750 Miscellaneous Central Distributions $ (69,095) $ - $ 14,311,970 $ 14,242,875 Non-Standard Substitute Expenses $ 3,649,357 $ - $ - $ 3,649,357 Rebudget Encumberances $ - $ - $ 56,904,571 $ 56,904,571 Salary Lapse $ (69,652,870) $ - $ - $ (69,652,870) Tax Adjustment Administration Share $ - $ - $ 2,400,000 $ 2,400,000 Tax Anticipation Notes $ - $ - $ 520,000 $ 520,000 Training Supplements & Tuition Reimbursement $ - $ - $ 1,235,000 $ 1,235,000 UTD Officers Temporary Duty & Subs $ 737,609 $ - $ - $ 737,609 Utilities $ - $ - $ 91,523,653 $ 91,523,653 Vacation/Sick Leave Pay-Out & Other Staff Services $ 29,773,800 $ - $ (18,670,765) $ 11,103,035 Property/Flood Insurance $ - $ - $ 27,459,434 $ 27,459,434 Total $ (35,919,985) $ - $ 274,772,901 $ 238,852,916 Central Accounts Budget Five Year History $245 $243 $241 $239 $

13 Non-School District Budgets The General Fund budget for M-DCPS non-school departments is $281,496,744. This represents a 4% increase from FY , but a 41% drop from FY Of the total $281 million, $96 million is appropriated for School Facilities, Construction & Maintenance almost all of which is paid for by the Capital Funds. Departments that are commonly referred to as Central Office are down more than $1 million this year (despite mid-year FY raises and a large mandated increase in FRS), and an astonishing 55% collectively since Tentative Budget Employee Full-Time Salary Hourly/ Non-Salary Grand Total Bureau Count Overtime Board Attorney 20 $ 2,419,802 $ - $ 349,183 $ 2,768,985 Board Members 36 $ 2,630,239 $ 130,236 $ 1,031,691 $ 3,792,166 Bureau Of Audits & Employee Invest 34 $ 2,991,694 $ - $ 379,574 $ 3,371,268 Curriculum & Instruction 94 $ 9,240,797 $ 985,897 $ 6,391,577 $ 16,618,271 Education Transformation Office 6 $ 513,330 $ - $ 14,702 $ 528,032 Facilities Operations, Construction 43 $ 4,132,595 $ 49,732 $ 2,922,806 $ 7,105,133 Facilities Operations, Maintenance 871 $ 63,480,752 $ 15,081 $ 15,092,139 $ 78,587,972 Financial Operations 146 $ 11,195,521 $ 190,153 $ 1,218,816 $ 12,604,490 Human Resources 112 $ 10,223,801 $ 29,538 $ 1,091,791 $ 11,345,130 Intergov. Affairs, Grants Admin & Comm. Svcs 25 $ 2,283,033 $ 66,956 $ 433,645 $ 2,783,634 Information Technology Services 228 $ 18,788,210 $ 394,373 $ 4,140,242 $ 23,322,825 Police & District Security 207 $ 14,348,777 $ 850,947 $ 1,824,048 $ 17,023,772 Public Relations 36 $ 2,717,780 $ 57,255 $ 637,297 $ 3,412,332 School Facilities 131 $ 8,697,431 $ 377,459 $ 1,404,292 $ 10,479,182 School Operations 169 $ 13,056,927 $ 428,674 $ 3,553,279 $ 17,038,880 Superintendent 13 $ 1,587,622 $ - $ 79,581 $ 1,667,203 Transportation 1,584 $ 57,967,583 $ 611,264 $ 10,468,622 $ 69,047,469 Total 3,755 $ 226,275,894 $ 4,187,565 $ 51,033,285 $ 281,496,744 $364 Non-School District Budgets Five Year History $330 $285 $270 $