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 7, 2010

2 THE SCHOOL DISTRICT OF PALM BEACH COUNTY, FLORIDA EXECUTIVE SUMMARY OF THE BUDGET (ALL FUNDS) BOARD MEMBERS Monroe Benaim, M.D., Chairman Dr. Sandra S. Richmond, Vice Chair Frank A. Barbieri, Jr., Esq. Paulette Burdick William G. Graham Carrie Hill Debra L. Robinson, M.D. ISSUED BY Arthur C. Johnson, Ph.D., Superintendent Joseph M. Moore, Chief Operating Officer Ann Killets, Chief Learning Officer Michael J. Burke, Chief Financial Officer PREPARED BY Shirley M. Knox, Budget Director SUBMITTED FOR FINAL ADOPTION SEPTEMBER 7, 2010

3 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 DR. MONROE BENAIM CHAIRMAN DR. SANDRA S. RICHMOND VICE CHAIRMAN FRANK A. BARBIERI, JR, ESQ. PAULETTE BURDICK WILLIAM G. GRAHAM CARRIE HILL DEBRA L. ROBINSON, M.D. September 7, 2010 Dr. Monroe Benaim, Chairman and Members of the School Board of Palm Beach County 3340 Forest Hill Boulevard, Suite C-316 West Palm Beach, Florida Dear Dr. Benaim 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 FY 2010 Budget Recap Enrollment for Fiscal Year (FY) 2010 was projected to decline statewide by 10,000 students from FY 2009 enrollment. Instead, statewide enrollment increased 11,000 students. As a result, the Department of Education imposed an $85 million prorated holdback to balance the K-12 education budget to available funding. The district s portion of the proration was $5.5 million. The district s enrollment increased 3,266 students from the original FY 2010 projection. The increased funding associated with the enrollment upswing was partially offset by the proration to available funds, netting the district less funding per student than in the original budget, changing from $7, to $7, FY 2011 Budget The FY 2011 tentative budget for all funds totals $2,459,918,918, comprised of the following: General Fund $1,450,494,334 Special Revenue 279,266,892 Debt Service 262,457,902 Capital Projects 720,068,170 $2,712,287,298 Less Transfers (252,368,380) Total Funds $2,459,918,918 Palm Beach County Schools - Rated A by the Florida Department of Education , 2006, 2007, 2008 and 2009 EQUAL OPPORTUNITY EMPLOYER General Fund

4 Dr. Benaim Page Two September 7, 2010 General Fund The Base Student Allocation (BSA), the primary element of the Florida Education Finance Program (FEFP) funding formula, declined by $6.86 per FTE. Fortunately, the District Cost Differential (DCD) factor for Palm Beach increased slightly from to 1.046, offsetting some of the BSA decline. The net BSA for the district is declining by $1.33 from $3, to $3, The district s enrollment is projected to increase 2, FTE. The enrollment increase, in combination with the BSA decrease generates $12.2 million in additional revenue, and helps offset the cost of serving additional students. In other FEFP funding components, the state stabilization allocation is down $1.9 million. The FY 2010 $5.9 million holdback is not part of the second calculation funding and therefore translates to a funding increase. Categorical funding for class size reduction increased $6.9 million to a total of $201.6 million. Altogether, the result of the state funding formula changes, coupled with the projected enrollment increase, generated a revenue increase of $25.1 million. This increase is not enough to cover the cost of additional students, plus the rising costs of health insurance, Florida Retirement System costs, unemployment, and to replace the use of one time funds used to balance the FY 2010 budget. In order to balance the FY 2011 budget, the proposed budget moves the.25 mills for critical needs from capital to operating, generating $32.3 million for operating. This.25 mill levy for critical needs requires a super majority Board approval. The.748 discretionary millage split between operating and capital also changes, channeling.678 mills to operating and.070 mills to capital. In FY 2010, the discretionary millage was split.650 to operating and.098 mills to capital. The increase in discretionary operating millage still results in a $4.6 million decrease in operating revenues because of the 9.91% decline in property values. The net effect of the two local millage changes, (critical needs and discretionary), adds $27.7 million to the operating budget and conversely, lowers the capital revenue by the same amount. In addition to moving critical needs and discretionary millage from capital to operating, budget reductions were implemented to balance the General Fund budget as well. Department budgets have been reduced by 10% and schools budgets by 1%. Every effort was made to minimize reductions that impact the classroom. Administrative furloughs are being implemented. State Stabilization The state is again utilizing state stabilization monies to fund the FEFP formula. The amount allocated to Palm Beach is $59.7 million, down $1.9 million from FY Funding for FY 2011 represents the second and final year of state stabilization funding. It is important to note that roughly 1,600 positions are currently supported by state stabilization funding. State Revenue Outlook for FY 2011 The state s portion of the FEFP funding formula relies heavily on state sales tax revenues. The state general revenue forecast shows sales tax revenues are meeting projections. School districts are not expected to face a mid-year funding reduction, as in previous years.

5 Dr. Benaim Page Three September 7, 2010 Property Taxes By state law, the district must impose the Required Local Effort (RLE) millages set by the Legislature, in order to receive state FEFP funding. It is important to note that the RLE is the only component of the school district tax rate increasing. The RLE for FY 2011 is increasing to mills, from mills in FY Prior Year RLE is assessed for the second year, and is intended to make districts whole for property tax collection shortfalls during the prior year as a result of the decline in property tax values. The Prior Year RLE is increasing from mills to mills. Total RLE for FY 2011 is mills, generating $731.4 million in local revenue for the General Fund operating budget. The total local millage set by the School Board is unchanged from the prior year. Local millage assessed for the FY 2011 General fund budget is set at mills and will generate $120.0 million. The.928 mills is comprised of.678 mills discretionary operating millage and.25 critical needs operating millage. This is an increase in local millage designated for the General Fund, from.65 mills assessed in FY This was achieved by switching the critical needs millage from capital to operating. Capital discretionary millage has been lowered from.348 mills in FY 2010 to.007 mills for FY The rolled back rate is a calculated millage rate that would produce the same revenues as the previous year, based on current year taxable property values. Total FY 2011 millage assessed for both operating and capital purposes is mills. The rolled back rate, if imposed, is mills. The proposed mills is 7.98% less than the rolled back rate, which means the proposed millage will generate $79 million less revenue than FY The calculation of millage proceeds for inclusion in the budget is changing for FY Prior to FY 2011, the FEFP formula assumed a 95% collection rate. Beginning with FY 2011, the rate of collection used for FEFP is 96%. The result is that the FEFP includes $8.0 million additional revenue in the formula, revenue that the district has collected in recent years, but which is now being used to fulfill the FEFP funding formula. This change effectively created an $8.0 million reduction to the district budget. Additionally, while the usual collection rate averaged 96% from FY 2007 through FY 2009, the collection rate for FY 2010 fell to 94.6%. Collections appeared to be on track until the Value Adjustment Board adjustment of $6.4 million was received in mid-july. The adjustment is apportioned $4.9 million to General Fund and $1.5 million to Capital Fund. Should the FEFP budgeted 96% collection rate not be realized in FY 2011, actual revenue collected will be short. As with FY 2010, the actual results may not be known until receipt of the Value Adjustment Board adjustment in July Class Size FY 2011 is the year in which the class size amendment is to be fully implemented. Each core class, (math, reading, science, social studies, foreign language, etc.), must not exceed 18 for K-3, 22 for 4-8 and 25 for 9-12, by October, when class size is measured. The district s cost to implement is estimated at $59 million. The state has implemented penalties which may be abated up to 75% of the penalty if the district submits a specific plan to be in compliance by FY The district will make its best effort to comply for FY 2011 with the available resources. However, 100% compliance as required by the current statute is likely unattainable. The potential net penalty after abatement is estimated at $7 million for FY 2011 and a reserve has been established to cover this cost.

6 Dr. Benaim Page Four September 7, 2010 Class Size (continued) Full compliance will require the district to make budget reductions in order to fund the additional $59 million for teachers, as well as examine other tools: limit class enrollment in advanced placement core electives, re-draw attendance zones, reduce non-core course offerings, (e.g., P.E., fine arts, vocational), and other actions that will impact the class schedule options. Realizing that full implementation will create some undesired side effects, legislators voted to place a referendum on the November ballot which will introduce a measure of tolerance to the class size amendment. The amendment, if approved, will allow class size compliance at the school level, as long as each individual core class does not exceed 21 in K-3, 27 in 4-8, and 30 in The class size amendment has served its intended purpose well, as core class sizes are much lower than they were prior to the amendment. Should the November ballot initiative fail, the final phase of implementation will prove disruptive to the breadth of courses currently offered as well as student school assignments. Labor Negotiations As this letter is written, there has been no settlement with AESOP or FPSU for calendar contract year CTA has tentatively accepted the district monetary offer to pay each teacher a $500 one-time payment for the school year. The cost of the one-time payment is $6.6 million. Final agreement with CTA is pending approval by CTA membership and the School Board. Negotiations with CTA are expected to open for the school year following final agreement. PBA has agreed to no raise in exchange for contract language changes, with the proviso that should another bargaining or non-bargaining group receive a monetary increase in 2010, PBA may reopen the contract on salary. Benefit Cost Increases Benefit costs are increasing on three fronts: health insurance, Florida Retirement Service (FRS) rates and unemployment costs. Health insurance benefit budgets are increasing in FY 2011 by $500 per employee, at a cost of $9 million. Claims continue to increase each year. A 1% increase in FRS rates translates to $8 million in additional cost to the district. Finally, unemployment costs have increased due to the extension of unemployment benefits. Contingency Fund The contingency fund will remain at $44.4 million for FY This represents 3.2% of the General Fund proposed expenditures. During these lean financial times, it is critically important to the financial health and viability of the district to maintain an adequate emergency fund. The contingency fund allowed the district to quickly respond to damage incurred by a series of hurricanes in 2004 and New Fund Balance Reporting Requirements GASB 54, in effect for FY 2011, requires that school districts break out fund balances to new reporting categories, to properly characterize fund balances. The new categories are non-spendable, restricted, committed, assigned, and unassigned. Although the General Fund contingency fund requires board authorization to be expended, it is categorized as unassigned because it is not earmarked for specific expenditures prior to their occurrence. The new fund balance categories are utilized in the state budget document for budgeted year end fund balances.

7 Dr. Benaim Page Five September 7, 2010 Special Revenue Funds Special Revenue funds, as of tentative adoption, total $279 million. The budget includes entitlement funds Title I and IDEA, as well as Food Service, and year two of the American Recovery and Reinvestment Act (ARRA) grants. At this time of year, not all grants are yet received and the budget will increase during the year, as grants are awarded. It is important to note that the ARRA funds will expire at the end of FY Capital Funds The tentative capital projects budget for FY 2011 is $720 million. Capital projects revenue is comprised of existing fund balance of $342 million and $378 million of new funding. New funding is derived primarily from millage, $203 million, and $67 million from the sale of bonds. The bond sale proposed takes advantage of the ARRA economic stimulus program that allows the district to borrow funds for construction projects with little or no interest costs. The district s successful building program is winding down, as the proceeds of the referendum sales tax end and capital millage proceeds decline. The proposed capital millage of 1.57 mills is down from the FY 2010 millage of mills and reflects a shift in millage assessment from capital to general fund, to cover the general fund budget shortfall. The capital fund continues to fund the capital maintenance transfer, debt service and property and flood insurance, as allowed by statute. Outlook for FY 2012 Many factors on the horizon indicate that FY 2012 will be a challenging budget year. The FEFP funding formula is dependent on state revenues, local property taxes and state fiscal stabilization funds, and the trend for each source is not positive. At the local level and throughout the state, property values are still falling, placing additional pressure on the FEFP funding formula. The critical millage of 0.25 mills was authorized for FY 2010 and 2011 only, and requires that voters approve the millage in order to continue assessment. The School Board has approved a referendum for the November, 2010, ballot seeking voter approval to continue the 0.25 mill levy for FY 2012 FY Discontinuation of this millage represents a loss of approximately $32 million in annual operating revenue. Finally, the State Fiscal Stabilization Funds provided by the federal government for FY 2010 and 2011 are scheduled to sunset on June 30, State Stabilization funding totals $59 million for the district in FY2011. In short, all the funding sources that support K-12 education are either ending or in decline. In addition to the loss of State Fiscal Stabilization funding, the Title I and IDEA ARRA stimulus funding comes to a close at the end of FY The end of Stabilization and ARRA funds represents a loss of approximately $100 million of revenue for FY Following the intent of the ARRA funds, the funding has been used for positions, so the district will be faced with prioritizing all appropriations to make reductions that will minimize the impact on student achievement and school safety. The $10 billion Education Jobs Bill recently approved by Congress and the President provides $554.8 million for Florida to fund school based personnel. States must allocate these funds to local education authorities (LEAs) in FY2011. However, LEAs or local school districts have the discretion to carry

8 Dr. Benaim Page Six September 7, 2010 Outlook for FY 2012 (continued) these funds forward to FY2012 if needed. Our school district expects to receive approximately $31 to $35 million from this Federal grant and these funds could be used to mitigate the funding cliff for FY12 when the ARRA funds are no longer available. Along with the normal concerns for escalating operating costs for utilities, diesel and health insurance, the district may also face the full cost of class size reduction implementation at the individual classroom level (i.e. hard caps of 18/22/25 per class), should the proposed amendment fail. Sixty percent (60%) of voters must approve the ballot question to amend the constitution. 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 the district s scarce resources to support the highest needs of our students. Sincerely, Arthur C. Johnson, Ph.D. Superintendent

9 T A B L E O F C O N T E N T S Section BUDGET OVERVIEW School Board Mission School Board Goals and Key Results District Overview Guide to the Budget Comparison of Budget - All Funds Proposed Budget - Summary of All Funds FY 2009-FY 2011 Budget All Funds Fund Balance Fiscal Year Organizational Chart Section 2 BUDGET PROCESS Budget Process Budget Adoption Calendar Student Enrollment Forecasting and Trends TRIM (Truth in Millage) Budget Advertisements Resolution Certifying Millage to be Levied District Summary Budget Section 3 SCHOOL DISTRICT TAXES School Taxes Comparison of Palm Beach County Taxable Value Comparison of Millage Rates Comparison of Millage Increase to the Rolled Back Rate Homeowner Property Tax Impact & Millage Rate History Millage Rates and Homeowner Property Taxes Sample Tax Bill Certification of Taxable Value i

10 T A B L E O F C O N T E N T S Section 4 GENERAL FUND General Fund Revenue and Appropriations Comparison of FY2010 to FY Appropriations Classification and Explanation of Variances Revenues and Expenditures Five Year History Fund Balance and Contingency Reserve Florida Education Finance Program (FEFP) Detail Analysis of General Fund Revenue Analysis of General Fund Appropriations School Budgets by Function School Budgets by Program Legislative Requirements State Funding Formula Flow Chart Revenues and Expenditures Three Year History Section 5 CAPITAL PROJECTS FUND Capital Projects Fund Revenue and Appropriations Five Year History Five Year Plan Section 6 DEBT SERVICE FUND Debt Service Revenue and Appropriations Five Year History Debt Service Existing Obligations Debt Service Estimated Legal Limits ii

11 T A B L E O F C O N T E N T S Debt Service Amortization Schedules District Bond and Note Ratings Section 7 OTHER FUNDS Other Funds Special Revenue ARRA Funds Special Revenue ARRA Funds Two Year History Special Revenue Funds Other Special Revenue Other Five Year History Special Revenue - Food Service School Food Revenue and Appropriations - Five Year History Internal Service Funds Section 8 ALLOCATION FORMULAS School Center Resource Allocation Formulas Custodial Budget Allocation Section 9 APPENDICES FL Districts Comparison - Direct/Indirect FL Districts Comparison - Direct/Indirect Support Function Statistical & Supplemental Data Section 10 GLOSSARY iii

12 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.

13 SCHOOL BOARD MEMBERS District 1: Mr. Monroe Benaim, M.D., Chairman 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 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

14 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. 1-2

15 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. 1-3

16 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. 1-4

17 BUDGET OVERVIEW 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 172,701 students during the school year. The School District operates 187 schools: 107 elementary, 33 middle, 23 high, 2 K-12 schools, 1 intermediate, 17 alternative schools, 2 special education centers, and 2 adult and community education schools. There are 32 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 143 languages and dialects are spoken by our students. The Department of ESE includes programs for disabled and programs for gifted learners. As of February 2010, there were 35,672 students for whom the ESE Department must ensure a Free and Appropriate Public Education through the provisions of each student s IEP and Educational Plan. Of the total, 27,417 students are eligible for services under the Individuals with Disabilities Education Act. Over 49% 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 , 88 of Palm Beach County s schools earned A s, 20 schools earned B s, and 25 schools earned C s. Grades for high schools will not be available in October. 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 six years in a row. The District has 709 National Board Certified teachers. Over 38% 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 97 of our schools. Summer Camps are provided in over 50 school sites. We also offer adult and community education classes at 26 schools, including one full-time Adult Education Center and one Virtual Education program. Many of our school sites are leased to community organizations, for after-hour activities. Schools are also used as voting polls and hurricane shelters. 1-5

18 BUDGET OVERVIEW GUIDE TO THE BUDGET BUDGET The total budget for all funds for is $2.5 billion. This includes a General Fund operating budget of $1.5 billion and a Capital Projects budget of $720 million. 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 $262 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 began in FY 2010 and end this year. Enacted by Congress, the funding has the dual purpose of improving the quality of education and preserving jobs. The FY 2011 allocation for ARRA funds is $92 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 $99 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 $88 million, up from $84 million in Internal Service Funds, which is not included in the district budget totals, account for the District s health self-insurance 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 $203 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). For , statewide appropriations for the FEFP amount to $5.9 billion for 1-6

19 BUDGET OVERVIEW student enrollment associated with the 180 day regular school year and students in juvenile justice programs during the summer. 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, $872.7 million is used to fund K-12 education. A separate appropriation of $374.6 million is allocated for Workforce Development, which 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, the same amount as the previous year. The state also allocates funding of $2.9 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. The FY 2011 FEFP calculation for the School District of Palm Beach County is shown on page 4-10 in the General Fund section. FEFP revenue for the District is up $53.4 million compared to year-end A complete summary of general fund sources is displayed on 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 $7.2 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 96 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 was reduced from mills in to mills in

20 BUDGET OVERVIEW Discretionary Millage In , the Legislature authorized an increase in the discretionary millage to allow districts to levy up to mills. This millage may be allocated for either operating or capital usage. The district is splitting the millage as follows: mills for operating and.070 mills for capital. Critical Needs Millage The Legislature authorized an additional mills for critical needs beginning in 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 non-recurring revenue source, the Board is allocating the mills to operating needs for 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. 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, 1-8

21 BUDGET OVERVIEW 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. 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: activities of the District. These funds are used to account for the educational programs and 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 self-insurance 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. 1-9

22 COMPARISON OF BUDGET - ALL FUNDS TO Comparison of All Funds $1,400,000,000 $1,200,000,000 $1,000,000,000 $800,000, $600,000, $400,000,000 $200,000,000 $0 General Fund Special Rev - Food Special Rev -Special Rev - Other ARRA Debt Service Capital Projects Revised Tentative % Increase/ Increase Fund Titles Budgets Budgets (Decrease) (Decrease) General Fund $ 1,396,546,338 $1,450,494,334 $53,947, % Special Revenue - Food Service 84,581,151 88,379,874 3,798, % Special Revenue - Other * 134,703,602 99,031,585 (35,672,016) (26.48%) Special Revenue - ARRA 137,984,118 91,855,432 (46,128,686) (33.43%) Debt Service 263,967, ,457,902 (1,509,189) (0.57%) Capital Projects 1,016,610, ,068,170 (296,541,932) (29.17%) Sub-Total $3,034,392,403 $2,712,287,298 ($322,105,105) Less Transfers: (228,694,915) (252,368,380) (23,673,465) 10.35% TOTAL ALL FUNDS $2,805,697,488 $2,459,918,918 ($345,778,570) (12.32%) *Not all Federal and State funds have been received. It is anticipated the FY2011 revenue will be similar to FY

23 1-11

24 PROPOSED DISTRICT BUDGET SUMMARY OF ALL FUNDS ESTIMATED REVENUES GENERAL SPECIAL REVENUES FUND REVENUE Federal $ 4,706,000 $ 231,588,818 State Sources 361,721,202 1,566,439 Local Sources 899,300,867 23,177,760 TOTAL SOURCES $ 1,265,728,069 $ 256,333,017 Transfers In 81,125,392 Other Financing Nonrevenue Sources: Fund Balances - July 1, ,640,873 22,933,874 TOTAL REVENUE, TRANSFERS & BALANCES 1,450,494, ,266,891 Less Transfers TOTAL REVENUE & BALANCES $ 1,450,494,334 $ 279,266,891 ESTIMATED APPROPRIATIONS APPROPRIATIONS Instruction $ 920,526,511 $ 53,833,776 Pupil Personnel Services 34,559,550 19,485,177 Instructional Media Services 17,560,680 3,140,102 Instruction & Curriculum Services 22,366,740 29,323,993 Instructional Staff Training 12,762,936 35,357,947 Instruction Related Technology 3,557,652 3,714,829 Board of Education 6,483,126 General Administration 6,232,654 4,504,414 School Administration 96,212, ,538 Facilities Acquisition & Construction 845,721 Fiscal Services 5,730,964 Food Service 27,345 70,344,975 Central Services 20,437,895 1,892,650 Pupil Transportation Services 37,832,707 5,372,821 Operation of Plant 104,778,006 34,040,779 Maintenance of Plant 69,295,845 19,992 Administrative Technology Services 10,493,750 Community Services 36,141,128 Debt Service 279,921 Internal Accounts Expenditures TOTAL APPROPRIATIONS $ 1,406,125,170 $ 261,231,992 Transfers Out Fund Balances - June 30, ,369,164 18,034,899 TOTAL APPROPRIATIONS, TRANSFERS & BALANCES 1,450,494, ,266,891 Less Transfers TOTAL APPROPRIATIONS & BALANCES $ 1,450,494,334 $ 279,266,

25 ESTIMATED REVENUES DEBT CAPITAL TOTAL REVENUES SERVICE PROJECTS ALL FUNDS Federal $ 236,294,818 State Sources $ 4,736,031 $ 9,865, ,889,339 Local Sources 267,624,613 1,190,103,240 TOTAL SOURCES $ 4,736,031 $ 277,490,280 $ 1,804,287,397 Transfers In 148,000,000 23,242, ,368,380 Other Financing 77,366,000 77,366,000 Nonrevenue Sources: Fund Balances - July 1, ,721, ,968, ,265,521 TOTAL REVENUE, TRANSFERS & BALANCES 262,457, ,068,170 2,712,287,298 Less Transfers (252,368,380) TOTAL REVENUE & BALANCES $ 262,457,902 $ 720,068,170 $ 2,459,918,918 ESTIMATED APPROPRIATIONS APPROPRIATIONS Instruction $ 974,360,287 Pupil Personnel Services 54,044,727 Instructional Media Services 20,700,782 Instruction & Curriculum Services 51,690,733 Instructional Staff Training 48,120,883 Instruction Related Technology 7,272,481 Board of Education 6,483,126 General Administration 10,737,068 School Administration 96,412,576 Facilities Acquisition & Construction $ 467,699, ,545,511 Fiscal Services 5,730,964 Food Service 70,372,320 Central Services 22,330,545 Pupil Transportation Services 43,205,528 Operation of Plant 138,818,785 Maintenance of Plant 69,315,836 Administrative Technology Services 10,493,750 Community Services 36,141,128 Debt Service $ 154,396, ,676,172 Internal Accounts Expenditures TOTAL APPROPRIATIONS $ 154,396,251 $ 467,699,790 $ 2,289,453,203 Transfers Out 252,368, ,368,380 Fund Balances - June 30, ,061, ,465,715 TOTAL APPROPRIATIONS, TRANSFERS & BALANCES 262,457, ,068,170 2,712,287,298 Less Transfers (252,368,380) TOTAL APPROPRIATIONS & BALANCES $ 262,457,902 $ 720,068,170 $ 2,459,918,

26 FY FY 2011 ALL FUNDS REVENUES FY 2009 ACTUAL FY 2010 ACTUAL FY 2011 EXPENDITURES EXPENDITURES BUDGET Federal $ 159,995,991 $ 253,911,220 $ 236,294,818 State Sources 348,288, ,083,619 16,168,137 Local Sources 1,385,975,057 1,327,887, ,802,373 TOTAL SOURCES $ 1,894,259,806 $ 1,879,882,204 $ 543,265,328 Transfers In 216,104, ,694, ,368,380 Other Financing 12,606,223 4,882,730 1,338,388,069 Fund Balances, Beginning 837,876, ,217, ,265,521 TOTAL REVENUE, TRANSFERS & BALANCES 2,960,847,217 2,748,676,984 2,712,287,298 Less Transfers (216,104,381) (228,694,915) (252,368,380) TOTAL REVENUE & BALANCES $ 2,744,742,835 $ 2,519,982,069 $ 2,459,918,918 EXPENDITURES Instruction $ 936,120,075 $ 903,991,456 $ 974,360,287 Pupil Personnel Services 55,909,461 52,685,900 54,044,727 Instructional Media Services 18,726,424 19,883,150 20,700,782 Instruction & Curriculum Services 54,684,074 53,900,037 51,690,733 Instructional Staff Training 33,932,692 52,586,853 48,120,883 Instruction Related Technology 4,611,184 6,513,477 7,272,481 Board of Education 5,169,247 5,578,853 6,483,126 General Administration 9,930,439 13,185,706 10,737,068 School Administration 96,097,062 94,161,985 96,412,576 Facilities Acquisition & Construction 396,126, ,679, ,545,511 Fiscal Services 5,828,120 6,234,369 5,730,964 Food Service 60,624,283 63,171,854 70,372,320 Central Services 14,553,638 15,852,116 22,330,545 Pupil Transportation Services 45,582,940 44,454,646 43,205,528 Operation of Plant 128,868, ,965, ,818,785 Maintenance of Plant 46,190,284 60,702,315 69,315,836 Administrative Technology Services 5,450,668 9,533,172 10,493,750 Community Services 29,470,391 26,935,164 36,141,128 Debt Service 161,650, ,701, ,676,172 TOTAL EXPENDITURES $ 2,109,525,701 $ 1,941,716,548 $ 2,289,453,203 Transfers Out 216,104, ,694, ,368,380 Fund Balances, Ending 635,217, ,265, ,465,715 TOTAL EXPENDITURES TRANSFERS & BALANCES 2,960,847,217 2,748,676,984 2,712,287,298 Less Transfers (216,104,381) (228,694,915) (252,368,380) TOTAL EXPENDITURES & BALANCES $ 2,744,742,835 $ 2,519,982,069 $ 2,459,918,

27 FUND BALANCE - FISCAL YEAR 2011 ALL FUNDS Special Revenue General Fund Food Service Other Debt Service Capital Total Beginning Fund Balance $ 103,640,873 $ 21,183,874 $ 1,750,000 $ 109,721,871 $ 341,968,902 $ 578,265,521 + Revenues 1,346,853,461 67,196, ,137, ,736, ,099,268 2,134,021,777 - Appropriations 1,406,125,170 70,344, ,887, ,396, ,068,170 2,541,821,583 Ending Fund Balance $ 44,369,164 $ 18,034,899 $ - $ 108,061,652 $ - $ 170,465,715 The District does not budget ending 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 utilized, 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 2010 are shown on pages

28 1-16 Public Information Office Grant Administration & School Reform Accountability Federal & State Programs School Improvement Choice Programs Career Education School Choice Reassignment Adult & Community Education Area Support Teams DA Support Transformation Department Human Resources HR Customer Relations Recruitment and Retention Compensation and Planning Employee Relations To School Police Chief Learning Officer Quality Assurance Area Director Charter Schools Alt Ed/DOP DJJ School District of Palm Beach County Organizational Chart - 9/07/2010 Areas Central Area Superintendent Area Director North Area Superintendent Area Director South Area Superintendent Area Director West Area Superintendent Area Director Chief Counsel to the School Board Safety & Learning Environment - Safe Schools Virtual School TEN After School Programming Professional Development Educational Technology & Instructional Materials Students, Parents & Community of PBC School Board of PBC Superintendent of Schools Curriculum Curriculum Elementary Curriculum Secondary Early Childhood Education ESE Hospital Homebound Multicultural Education Performance Accountability Educational Data Warehouse Research & Evaluation Assessment Advisory Committees -Audit -CORC - Finance - Charter District - ISSOC -TAC District Auditor Information Technology Applications Support & Quality Assurance Project Management Office IT Governance Infrastructure & Systems Support Technical Operations Facilities Management Building Dept Environmental Control Office Facilities Services Planning Program Management Project Controls Real Estate Services Chief Operating Officer School Police Business Diversity Risk & Benefits Management School Food Service Transportation Purchasing Consultant Legislative Liaison Chief Negotiator Labor Relations Financial Officer Budget Accounting Treasurer FTE & Student Reporting The School District of Palm Beach County, Florida

29 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 2011 budget adoption calendar is detailed on pages 2-4 and 2-5. The District advertised the tentative budget and millage rates, and held the first public hearing on July 28, This meeting provided the opportunity for public input to the budget process and for the School Board to approve the 2010 millage rates and approve the tentative budget. The Department of Revenue sets forth very specific budget advertising and adoption requirements which are reflected in the agenda items presented. The second and final public hearing is held on September 7, 2010 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 2-21 through The budget process for the current year starts months before the fiscal year begins on July 1. In December of 2009, student enrollment was projected for the school year. An overview of the enrollment projection process is found on pages 2-7. 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 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. 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 2-1

30 THE BUDGET PROCESS 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 and amended throughout the year. Amendments to the budget are approved at monthly Board Meetings, to accurately reflect revenue changes and the District s spending plan as the year progresses. State Statutes Financial Policies 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 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 2-2

31 THE BUDGET PROCESS 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 6-5. 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. Academic Business Plan Long Term Planning 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. 2-3

32 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 Legislative and Budget Update 1/27/2010 Wednesday, School Board Budget Workshop Joint Meeting with Palm Beach County Delegation 2/24/2010 Budget Presentation Wednesday, School Board Budget Workshop Legislative Update 3/10/2010 Wednesday, School Board Budget Retreat Legislative Update and Department Budget Review 4/28/2010 Wednesday, School Board Budget Retreat Department Budget Review 5/5/2010 Wednesday, School Board Budget Retreat Department Budget Review 5/12/2010 Wednesday, School Board Budget Retreat Department Budget Review 5/26/2010 Wednesday, School Board Budget Workshop Operating and Capital Budget 6/9/2010 Wednesday School Board Budget Retreat Operating and Capital Budget Review 7/7/2010 Wednesday School Board Budget Workshop Operating and Capital Budget Review 9/1/2010 STATE STATUTORY REQUIREMENTS Ref District Day Date Event Activity D Thursday, Property Appraiser certifies Roll. July 1 or date of certification, whichever is later. on 7/1/10 7/1/2010 Monday, Receive from the Department of Not later than 7/19/10, the Commissioner of 7/19/2010 Education Required Local Effort. Education shall certify the Required Local Effort. D + 24 Wednesday, Board approval for advertising Superintendent submits tentative district facilities by 7/24/10 7/21/10* 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. 2-4

33 THE SCHOOL DISTRICT OF PALM BEACH COUNTY, FL BUDGET ADOPTION CALENDAR STATE STATUTORY REQUIREMENTS Ref District Day Date Event Activity D + 29 Friday, Newspaper advertisement Advertising summary of tentative budget including by 7/29/10 7/23/2010 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 7/28/10* Not less than 2 nor more than budget and proposed millage rates. 5:05 p.m. 5 days after advertising. D + 35 Friday, Notify Property Appraiser Advise Property Appraiser of proposed millage rate. by 8/4/10 7/30/2010 Within 35 days of Certification This will be used by Property Appraiser to prepare of Value. Notice of Proposed Property Taxes. Not less Tuesday, Adopt the District Facilities Work Hold public hearing to adopt final facilities work than 9/7/10* 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 (7/28/10) unless each taxpayer is between 9/3/10 sent a personal notice of change under the new and 9/18/10 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. Wednesday, Submit Budget to Department of Education within 3 9/8/2010 business days after adoption (Florida State Board of Education - Administrative Rules 6A (1)) D Wednesday, Within 101 days of Certification Notify Property Appraiser, Tax Collector and by 10/9/10 9/8/2010 of Value. Department of Revenue of adopted millage rate within 3 days after the adoption of the resolution. *Indicates School Board Public Hearing 2-5

34 2-6

35 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 76,304 74,748 74,877 74,654 75,288 75,734 75,864 76,139 76,321 76,170 Middle Schools 38,042 36,657 36,985 37,742 37,863 38,186 38,195 38,798 39,027 39,053 High Schools 47,760 47,821 48,802 48,144 49,131 49,649 49,425 49,571 49,714 49,902 Alternative Education 3,454 4,017 2,242 1,590 1, ,000 1,004 1,007 Virtual School ,000 Charter Schools 7,676 6,772 6,548 7,186 7,718 7,864 8,177 8,269 8,409 8,452 Total K , , , , , , , , , ,584 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. 2-7

36 SCHOOL DISTRICT OF PALM BEACH COUNTY Board Meeting Date: July 21, 2010 Category: Consent Division: Budget Advertisement of the FY2011 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 Recommendation: I recommend the School Board approve the advertisements of the FY2011 tentative District summary budget and the appropriate tax notices 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. 2-8

37 NOTICE OF BUDGET HEARING The School District of Palm Beach County, Florida will soon consider a budget for FY2011. A public hearing to make a DECISION on the budget and TAXES will be held on July 28, 2010 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 2-9

38 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 $203,017,103 to be used for the following projects: CONSTRUCTION AND REMODELING Academies at Existing Schools, Alternative Schools Master Plan, Banyan Creek ES Add, Barton ES Mod, Benoist Farms ES Pre-K, Bethune ES Pre- K, Boca Raton MS Mod, Carver MS Add, Cholee Lake ES Pre-K, CO Taylor ES Mod, Congress MS Mod, County Fiber Construction, DD Eisenhower ES Mod, HL Johnson ES Add, Hope Centennial ES (06-D), Indian Pines ES Add & Pre-K, JF Kennedy MS Mod, Jupiter ES Bldg Renovation, Lake Worth MS Add, Northboro ES Mod, 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 Springs MS Mod, Pine Jog ES (03-Y), 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, Santaluces HS Academy, Santaluces HS Auditorium, School Food Service Build Out, South Olive ES Pre-K, Spanish River HS Biotech Academy, Suncoast HS Mod, Village Academy Secondary Level, Wellington ES Class Add, Wellington HS Academies, Wellington HS Auditorium, West Area Educational Complex, Westward ES Mod, CSR Projects, FHESC Windows, Boynton Beach HS Academy, 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, Old DD Eisenhower ES Demo, DD Eisenhower ES Playfields, Old Plumosa ES Demo, 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), Rosenwald ES Mod, Grove Park ES Remod, 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 Twenty-Eight (28) School Buses, Purchase of District Vehicles NEW AND REPLACEMENT EQUIPMENT AND ENTERPRISE SOFTWARE 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, RULES AND REGULATIONS Asbestos Abatement/Removal, Compliance with Wetlands, Well Field Protection, Removal of Hazardous Waste, 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 PAYMENT OF COSTS OF OPENING DAY COLLECTION FOR LIBRARY MEDIA CENTER All concerned citizens are invited to a public hearing to be held on July 28, 2010, 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. 2-10

39 2-11 PROPOSED MILLAGE LEVIES SUBJECT TO 10-MILL CAP: PROPOSED MILLAGE LEVIES Required Local Effort (Including Prior Year Discretionary Critical Needs (Operating) NOT SUBJECT TO 10-MILL CAP: Funding Adjustment Millage) Additional Millage Not to Exceed 4 Years Operating or Capital Not Local Capital Improvement (Capital Outlay) (Operating) to Exceed 2 Years Discretionary Operating Debt Service Discretionary Capital Improvement TOTAL MILLAGE GENERAL SPECIAL DEBT CAPITAL TOTAL ALL ESTIMATED REVENUES: FUND REVENUE SERVICE PROJECTS FUNDS Federal sources $4,706,000 $230,289,755 $67,600,000 $302,595,755 State sources 361,721,202 1,087,439 $4,736,031 19,601, ,146,560 Local sources 899,300,867 23,075, ,316,760 1,129,693,037 TOTAL SOURCES $1,265,728,069 $254,452,604 $4,736,031 $294,518,648 $1,819,435,353 Transfers In 81,125, ,000, ,125,392 Fund Balances/Reserves/Net Assets 99,400,000 22,000, ,552, ,270, ,223,631 TOTAL REVENUES, TRANSFERS & BALANCES $1,446,253,461 $276,452,604 $260,289,012 $709,789,298 $2,692,784,376 EXPENDITURES Instruction $925,182,943 $50,852,147 $976,035,090 Pupil Personnel Services 34,559,550 19,475,711 54,035,261 Instructional Media Services 17,635,666 3,140,102 20,775,768 Instructional and Curriculum Development Services 22,474,736 27,463,361 49,938,097 Instructional Staff Training Services 11,714,356 38,311,427 50,025,783 Instruction Related Technology 3,516,153 3,714,829 7,230,982 School Board 6,483,126 6,483,126 General Administration 6,192,404 4,476,422 10,668,826 School Administration 92,773, ,538 92,973,796 Facilities Acquisition and Construction 845,721 $480,663, ,509,627 Fiscal Services 5,860,885 5,860,885 Food Services 27,345 70,344,975 70,372,320 Central Services 16,265, ,650 16,408,626 Pupil Transportation Services 37,832,707 5,428,647 43,261,354 Operation of Plant 102,502,579 34,040, ,543,358 Maintenance of Plant 69,295,845 9,992 69,305,836 Administrative Technology Services 10,493,750 10,493,750 Community Services 36,094,503 36,094,503 Debt Services 2,132,792 $154,396, ,529,043 TOTAL EXPENDITURES $1,401,884,297 $257,601,579 $154,396,251 $480,663,906 $2,294,546,032 Transfers Out 229,125, ,125,392 Fund Balances/Reserves/Net Assets 44,369,164 18,851, ,892, ,112,951 TOTAL APPROPRIATED EXPENDITURES BUDGET SUMMARY THE PROPOSED OPERATING BUDGET EXPENDITURES OF THE SCHOOL DISTRICT OF PALM BEACH COUNTY ARE 3.7% MORE THAN LAST YEAR'S TOTAL OPERATING EXPENDITURES. FISCAL YEAR TRANSFERS, RESERVES & BALANCES $1,446,253,461 $276,452,604 $260,289,012 $709,789,298 $2,692,784,376 The tentative, adopted, and/or final budgets are on file in the office of the above mentioned taxing authority as a public record. The School District of Palm Beach County, Florida

40 Board Meeting Date: July 28, 2010 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 FY2011. This total millage levy is made up of mills for Required Local Effort,.6780 mills for Discretionary Operating Funds, mills for Capital Improvement Projects, and.0700 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 (7.23%) Prior Period Funding Adj % Discretionary Operating (6.03%) Capital (9.91%) Discretionary Capital Outlay (35.66%) Total Mills (7.92%) 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 $1,022,068,268 of revenue from local taxes during FY A C T I O N A G E N D A I T E M 2-12

41 Board Meeting Date: July 28, 2010 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 operating outlay needs millage levy of mills for FY2011. 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 non-recurring revenue source and is recommended the full amount be levied for operating needs. 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 $32,327,564 of revenue from local taxes during FY A C T I O N A G E N D A I T E M 2-13

42 Board Meeting Date: July 28, 2010 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 $2,463,658,984 for FY The recapitulation of this budget is scheduled below. General Fund $1,446,253,461 Special Revenue - Food Service 89,196,000 Special Revenue - Other * 95,522,710 Special Revenue - ARRA Stimulus 91,733,894 Debt Service 260,289,012 Capital Projects 709,789,298 Sub-Total $2,692,784,376 Less Transfers: (229,125,392) Total Funds $2,463,658,984 *Not all Federal and State funds have been received, it is anticipated the FY 2011 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 $2,463,658,984 in all funds for FY A C T I O N A G E N D A I T E M 2-14

43 SCHOOL DISTRICT OF PALM BEACH COUNTY Board Meeting Date: September 7, 2010 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 $1,022,068,268 in local revenues. Item Type: Action Recommendation: I recommend the School Board adopt the Resolution determining revenues and millages levied for FY2011. 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 $1,022,068,268 in local tax revenues for FY Full Review Required: Yes 2-15

44 Resolution Number B 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, 2010, 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 $ 134,698,183,829 Required Local Effort $ 724,525, mills s (4), F.S. Prior Period Funding Adjustment Millage $ 6,853, mills s (4)(e), F.S. Total Required Millage $ 731,378, 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 $ 134,698,183,829 Discretionary Operating $ 87,672, mills s (1), F.S. 3. DISTRICT SCHOOL TAX ADDITIONAL MILLAGE (voted levy) a) Certified taxable value b) Description of levy c) Amount to be raised d) Millage levy $ 134,698,183,829 Additional Operating $ mills ss (1) and (2), F.S. Additional Capital Improvement $ mills s (1), F.S. 2-16

45 4. DISTRICT LOCAL CAPITAL IMPROVEMENT TAX (nonvoted levy) a) Certified taxable value b) Description of levy c) Amount to be raised d) Millage levy $ 134,698,183,829 Local Capital Improvement $ 193,965, mills s (2), F.S. Discretionary Capital Improvement $ 9,051, mills s (3)(a), F.S. 5. DISTRICT DEBT SERVICE TAX (voted) a) Certified taxable value b) Description of levy c) Amount to be raised d) Millage levy $ 134,698,183,829 $ 0 mills s , F.S. $ 0 mills s , F.S. $ 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 7.98 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 7, Signature of Superintendent of Schools September 7, 2010 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. 2-17

46 SCHOOL DISTRICT OF PALM BEACH COUNTY Board Meeting Date: September 7, 2010 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 $32,327,564 in local revenues. Item Type: Action Recommendation: I recommend the School Board adopt the Resolution determining revenues and critical needs millages levied for FY2011. 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 $32,327,564 in local tax revenues for FY Full Review Required: Yes 2-18

47 Resolution Number B 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, 2010, 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 (nonvoted levy) a) Certified taxable value b) Description of levy c) Amount to be raised d) Millage levy $ 134,698,183,829 Critical Operating Needs $ 32,327, mills s (3)(b), F.S. 2. DISTRICT LOCAL CAPITAL IMPROVEMENT TAX (nonvoted levy) a) Certified taxable value b) Description of levy c) Amount to be raised d) Millage levy $ 134,698,183,829 Critical Capital Outlay Needs $ 0 mills s (3)(b), F.S. 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 7, Signature of Superintendent of Schools September 7, 2010 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. 2-19

48 SCHOOL DISTRICT OF PALM BEACH COUNTY Board Meeting Date: September 7, 2010 Final Budget Adoption DIVISION: Budget Approval of District Summary Budget Description: The recapitulation of this budget is scheduled below. Item Type: Action General Fund $1,450,494,334 Special Revenue - Food Service 88,379,874 Special Revenue - Other 99,031,585 Special Revenue - ARRA Stimulus 91,855,432 Debt Service 262,457,902 Capital Projects 720,068,170 Sub-Total $2,712,287,298 Less Transfers: (252,368,380) Total Funds $2,459,918,918 Recommendation: I recommend the School Board adopt the final district summary budget in the amount of $2,459,918,918 for FY The budget includes the District s FY 2011 organizational chart. 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 $2,459,918,918 in all funds for FY Full Review Required: Yes 2-20

49 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 134,698,183, B. Millage Levies on Nonexempt Property: DISTRICT MILLAGE LEVIES Nonvoted Voted Total 1. Required Local Effort Prior Period Funding Adjustment Millage Discretionary Operating Critical Operating Needs Additional Operating 6. Additional Capital Improvement 7. Local Capital Improvement Discretionary Capital Improvement Critical Capital Outlay Needs 10. Debt Service TOTAL MILLS ESE 139 EXP. 06/30/

50 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 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 ,100, National Forest Funds 3255 Federal Through Local 3280 Miscellaneous Federal through State 3299 Total Federal Through State And Local ,100, STATE: Florida Education Finance Program (FEFP) ,358, Workforce Development ,415, Workforce Development Capitalization Incentive Grant 3316 Workforce Education Performance Incentive , Adults With Disabilities ,127, CO & DS Withheld for Administrative Expense , Diagnostic and Learning Resources Centers 3335 Racing Commission Funds 3341 State Forest Funds 3342 State License Tax , District Discretionary Lottery Funds , Class Size Reduction Operating Funds ,569, School Recognition Funds ,146, Excellent Teaching Program 3363 Voluntary Prekindergarten Program ,562, Preschool Projects 3372 Reading Programs 3373 Full Service Schools 3378 Other Miscellaneous State Revenue , Total State ,721, LOCAL: District School Tax ,378, Tax Redemptions 3421 Payment in Lieu of Taxes , Excess Fees 3423 Tuition (Non-Resident) 3424 Rent , Interest, Including Profit On Investment , Gifts, Grants and Bequests ,200, 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 ,685, Preschool Program Fees , Prekindergarten Early Intervention Fees 3472 School Age Child Care Fees ,500, Other Schools, Courses and Classes Fees 3479 Miscellaneous Local Sources ,387, Total Local ,300, TOTAL ESTIMATED REVENUES 1,265,728, OTHER FINANCING SOURCES Loans 3720 Sale of Capital Assets 3730 Loss Recoveries 3740 Transfers In: From Debt Service Funds 3620 From Capital Projects Funds ,125, From Special Revenue Funds 3640 From Permanent Fund 3660 From Internal Service Funds 3670 From Enterprise Funds 3690 Total Transfers In ,125, TOTAL OTHER FINANCING SOURCES 81,125, Fund Balance, July 1, ,640, TOTAL ESTIMATED REVENUES, OTHER FINANCING SOURCES, AND FUND BALANCE 1,450,494, ESE

51 2-23 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 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 ,526, ,196, ,841, ,711, ,591, , ,863, Pupil Personnel Services ,559, ,782, ,325, ,267, , , , Instructional Media Services ,560, ,491, ,981, , , , ,294, , Instruction and Curriculum Development Services ,366, ,082, ,478, , , , , Instructional Staff Training Services ,762, ,186, ,405, , , , ,989, Instruction Related Technology ,557, ,566, , ,465, , , , Board ,483, ,026, , , , , ,549, General Administration ,232, ,097, ,250, , , , , , School Administration ,212, ,158, ,021, , , , , Facilities Acquisition and Construction , , , , , Fiscal Services ,730, ,841, ,319, , , , Food Service , , , , Central Services ,437, ,681, ,306, ,069, , ,226, , , Pupil Transportation Services ,832, ,763, ,970, ,682, ,263, ,978, , , Operation of Plant ,778, ,821, ,284, ,051, ,423, ,487, , ,644, Maintenance of Plant ,295, ,659, ,611, ,064, , ,786, , ,317, Administrative Technology Services ,493, ,125, ,703, ,450, , , , Community Services ,141, ,988, ,991, , , ,335, , ,032, Debt Service , , Other Capital Outlay 9300 TOTAL APPROPRIATIONS 1,406,125, ,745, ,037, ,431, ,040, ,686, ,960, ,224, 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 9700 TOTAL OTHER FINANCING USES Nonspendable Fund Balance, June 30, Restricted Fund Balance, June 30, Committed Fund Balance, June 30, Assigned Fund Balance, June 30, Unassigned Fund Balance, June 30, ,369, TOTAL ENDING FUND BALANCE ,369, TOTAL APPROPRIATIONS, OTHER FINANCING USES, AND FUND BALANCE 1,450,494, ESE 139 The School District of Palm Beach County, Florida

52 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 SECTION III. SPECIAL REVENUE FUNDS - FOOD SERVICES - FUND 410 Page 4 ESTIMATED REVENUES FEDERAL THROUGH STATE AND LOCAL: Account Number National School Lunch Act ,341, U.S.D.A. Donated Foods ,150, Federal Through Local 3280 Miscellaneous Federal Through State 3299 Total Federal Through State And Local ,491, 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 ,494, Other Miscellaneous Local Sources , Total Local ,770, TOTAL ESTIMATED REVENUES 67,196, 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 3600 TOTAL OTHER FINANCING SOURCES Fund Balance, July 1, ,183, TOTAL ESTIMATED REVENUES, OTHER FINANCING SOURCES, AND FUND BALANCE 88,379, ESE

53 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 SECTION III. SPECIAL REVENUE FUNDS - FOOD SERVICES - FUND 410 (CONTINUED) Page 5 Account APPROPRIATIONS Number Food Services: (Function 7600) Salaries ,829, Employee Benefits ,026, Purchased Services 300 7,745, Energy Services 400 2,862, Materials and Supplies ,739, Capital Outlay 600 1,586, Other Expenses 700 1,555, Capital Outlay (Function 9300) 600 TOTAL APPROPRIATIONS ,344, 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 Nonspendable Fund Balance, June 30, Restricted Fund Balance, June 30, Committed Fund Balance, June 30, Assigned Fund Balance, June 30, Unassigned Fund Balance, June 30, ,034, TOTAL ENDING FUND BALANCE ,034, TOTAL APPROPRIATIONS, OTHER FINANCING USES, AND FUND BALANCE 88,379, ESE

54 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 SECTION IV. SPECIAL REVENUE FUNDS - FEDERAL PROGRAMS - FUND 420 Page 6 Account ESTIMATED REVENUES Number FEDERAL DIRECT: Workforce Investment Act 3170 Community Action Programs 3180 Reserve Officers Training Corps (ROTC) 3191 Miscellaneous Federal Direct ,128, Total Federal Direct ,128, FEDERAL THROUGH STATE AND LOCAL: Vocational Education Acts 3201 Medicaid 3202 Workforce Investment Act 3220 Eisenhower Math and Science 3226 Drug Free Schools 3227 Individuals with Disabilities Education Act (IDEA) ,633, Elementary and Secondary Education Act, Title I ,364, Adult General Education 3251 Vocational Rehabilitation 3253 Elementary and Secondary Education Act, Title V 3270 Federal Through Local Miscellaneous Federal Through State ,114, Total Federal Through State And Local ,113, 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 97,281, 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 3600 TOTAL OTHER FINANCING SOURCES Fund Balance, July 1, ,750, TOTAL ESTIMATED REVENUES, OTHER FINANCING SOURCES, AND FUND BALANCE 99,031, ESE

55 2-27 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 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 ,334, ,643, ,332, ,671, , ,324, ,161, , Pupil Personnel Services ,023, ,812, ,378, , , , , Instructional Media Services , , , , Instruction and Curriculum Development Services ,168, ,477, ,323, ,490, , , , Instructional Staff Training Services ,853, ,998, ,947, ,186, ,189, , , Instruction Related Technology 6500 Board 7100 General Administration ,541, ,541, School Administration 7300 Facilities Acquisition and Construction 7400 Fiscal Services 7500 Food Services 7600 Central Services ,892, , , , ,750, Pupil Transportation Services ,126, , , , ,060, Operation of Plant , , Maintenance of Plant , , Administrative Technology Services 8200 Community Services 9100 Debt Service 9200 Other Capital Outlay 9300 TOTAL APPROPRIATIONS 99,031, ,038, ,017, ,764, , ,239, ,692, ,263, 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 Nonspendable Fund Balance, June 30, Restricted Fund Balance, June 30, Committed Fund Balance, June 30, Assigned Fund Balance, June 30, Unassigned Fund Balance, June 30, TOTAL ENDING FUND BALANCE 2700 TOTAL APPROPRIATIONS, OTHER FINANCING USES, AND FUND BALANCE 99,031, ESE 139 The School District of Palm Beach County, Florida

56 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 SECTION V. SPECIAL REVENUE FUNDS - STATE FISCAL STABILIZATION FUNDS - FUND 431 Page 8 ESTIMATED REVENUES FEDERAL THROUGH STATE AND LOCAL: Account Number State Fiscal Stabilization Funds - K ,704, State Fiscal Stabilization Funds - Workforce 3211 State Fiscal Stabilization Funds - VPK 3212 Miscellaneous Federal Through State 3299 Total Federal Through State And Local ,704, LOCAL: Interest, Including Profit on Investment 3430 Total Local 3400 TOTAL ESTIMATED REVENUES 59,704, OTHER FINANCING SOURCES: Sale of Capital Assets 3730 Loss Recoveries 3740 Transfers In: From Capital Projects Funds 3630 Total Transfers In 3600 TOTAL OTHER FINANCING SOURCES Fund Balance, July 1, TOTAL ESTIMATED REVENUES, OTHER FINANCING SOURCES, AND FUND BALANCE 59,704, ESE

57 2-29 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 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 5000 Pupil Personnel Services ,233, ,110, ,647, ,475, Instructional Media Services ,089, ,995, ,094, Instruction and Curriculum Development Services ,584, ,808, ,776, Instructional Staff Training Services 6400 Instruction Related Technology ,714, ,497, ,217, Board 7100 General Administration ,614, ,614, School Administration , , , Facilities Acquisition and Construction 7400 Fiscal Services 7500 Food Services 7600 Central Services 7700 Pupil Transportation Services ,246, ,016, ,229, Operation of Plant ,020, ,980, ,040, Maintenance of Plant 8100 Administrative Technology Services 8200 Community Services 9100 Debt Service 9200 Other Capital Outlay 9300 TOTAL APPROPRIATIONS 59,704, ,563, ,050, ,475, ,614, OTHER FINANCING USES: Transfers Out: (Function 9700) To Capital Projects Funds 930 Total Transfers Out 9700 TOTAL OTHER FINANCING USES Nonspendable Fund Balance, June 30, Restricted Fund Balance, June 30, Committed Fund Balance, June 30, Assigned Fund Balance, June 30, Unassigned Fund Balance, June 30, TOTAL ENDING FUND BALANCE 2700 TOTAL APPROPRIATIONS, OTHER FINANCING USES, AND FUND BALANCE 59,704, ESE 139 The School District of Palm Beach County, Florida

58 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 SECTION V. SPECIAL REVENUE FUNDS - TARGETED ARRA STIMULUS FUNDS - FUND 432 Page 10 FEDERAL DIRECT: ESTIMATED REVENUES Account Number Miscellaneous Federal Direct 3199 Total Federal Direct 3100 FEDERAL THROUGH STATE AND LOCAL: Individuals with Disabilities Education Act (IDEA) ,434, Elementary and Secondary Education Act, Title I ,595, Miscellaneous Federal Through State , Total Federal Through State And Local ,151, LOCAL: Interest, Including Profit on Investment 3430 Total Local 3400 TOTAL ESTIMATED REVENUES 32,151, OTHER FINANCING SOURCES: Sale of Capital Assets 3730 Loss Recoveries 3740 Transfers In: From Capital Projects Funds 3630 Total Transfers In 3600 TOTAL OTHER FINANCING SOURCES Fund Balance, July 1, TOTAL ESTIMATED REVENUES, OTHER FINANCING SOURCES, AND FUND BALANCE 32,151, ESE

59 2-31 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 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 ,498, ,079, ,342, ,360, , , , Pupil Personnel Services ,228, ,745, , , Instructional Media Services 6200 Instruction and Curriculum Development Services ,571, ,876, , , , Instructional Staff Training Services ,504, ,421, ,497, , , , , Instruction Related Technology 6500 Board 7100 General Administration , , School Administration 7300 Facilities Acquisition and Construction 7400 Fiscal Services 7500 Food Services 7600 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 32,151, ,122, ,894, ,166, ,363, , , OTHER FINANCING USES: Transfers Out: (Function 9700) To Capital Projects Funds 930 Total Transfers Out 9700 TOTAL OTHER FINANCING USES Nonspendable Fund Balance, June 30, Restricted Fund Balance, June 30, Committed Fund Balance, June 30, Assigned Fund Balance, June 30, Unassigned Fund Balance, June 30, TOTAL ENDING FUND BALANCE 2700 TOTAL APPROPRIATIONS, OTHER FINANCING USES, AND FUND BALANCE 32,151, ESE 139 The School District of Palm Beach County, Florida

60 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 SECTION V. SPECIAL REVENUE FUNDS - OTHER ARRA STIMULUS GRANTS - FUND 433 Page 12 FEDERAL DIRECT: ESTIMATED REVENUES Account Number Miscellaneous Federal Direct 3199 Total Federal Direct 3100 FEDERAL THROUGH STATE AND LOCAL: Other Food Services 3269 Miscellaneous Federal Through State 3299 Total Federal Through State And Local 3200 LOCAL: Interest, Including Profit on Investment 3430 Total Local 3400 TOTAL ESTIMATED REVENUES OTHER FINANCING SOURCES: Sale of Capital Assets 3730 Loss Recoveries 3740 Transfers In: From Capital Projects Funds 3630 Total Transfers In 3600 TOTAL OTHER FINANCING SOURCES Fund Balance, July 1, TOTAL ESTIMATED REVENUES, OTHER FINANCING SOURCES, AND FUND BALANCE ESE

61 2-33 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 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 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 Food Services 7600 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 OTHER FINANCING USES: Transfers Out: (Function 9700) To Capital Projects Funds 930 Total Transfers Out 9700 TOTAL OTHER FINANCING USES Nonspendable Fund Balance, June 30, Restricted Fund Balance, June 30, Committed Fund Balance, June 30, Assigned Fund Balance, June 30, Unassigned Fund Balance, June 30, TOTAL ENDING FUND BALANCE 2700 TOTAL APPROPRIATIONS, OTHER FINANCING USES, AND FUND BALANCE ESE 139 The School District of Palm Beach County, Florida

62 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 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 Nonspendable Fund Balance, June 30, Restricted Fund Balance, June 30, Committed Fund Balance, June 30, Assigned Fund Balance, June 30, Unassigned Fund Balance, June 30, TOTAL ENDING FUND BALANCE 2700 TOTAL APPROPRIATIONS, OTHER FINANCING USES, AND FUND BALANCE ESE

63 2-35 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 SECTION VII. DEBT SERVICE FUNDS Page ESTIMATED REVENUES Account Totals SBE & COBI Bonds Special Act Bonds Section F.S. Motor Vehicle District Bonds Other ARRA Economic Number (Race Track) Loans Revenue Bonds Debt Service Stim. Debt Svc. STATE SOURCES: CO & DS Distributed 3321 CO & DS Withheld for SBE/COBI Bonds ,736, ,736, Cost of Issuing SBE/COBI Bonds 3324 Interest on Undistributed CO & DS 3325 SBE/COBI Bond Interest 3326 Racing Commission Funds 3341 Total State Sources ,736, ,736, LOCAL SOURCES: District Debt Service Taxes 3412 Local Sales Tax 3418 Tax Redemptions 3421 Excess Fees 3423 Rent 3425 Interest, Including Profit on Investment 3430 Gifts, Grants, and Bequests 3440 Total Local Sources 3400 TOTAL ESTIMATED REVENUES 4,736, ,736, OTHER FINANCING SOURCES: Sale of Bonds 3710 Loans 3720 Proceeds of Certificates of Participation 3750 Transfers In: From General Fund 3610 From Capital Projects Funds ,000, ,483, , From Special Revenue Funds 3640 Interfund (Debt Service Only) 3650 From Permanent Fund 3660 From Internal Service Funds 3670 From Enterprise Funds 3690 Total Transfers In ,000, ,483, , TOTAL OTHER FINANCING SOURCES 148,000, ,483, , Fund Balances, July 1, ,721, , ,953, TOTAL ESTIMATED REVENUES, OTHER FINANCING SOURCES, AND FUND BALANCES 262,457, ,504, ,437, , ESE139 The School District of Palm Beach County, Florida

64 2-36 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 SECTION VII. DEBT SERVICE FUNDS (Continued) Page APPROPRIATIONS Account Totals SBE & COBI Bonds Special Act Bonds Section F. S. Motor Vehicle District Bonds Other ARRA Economic Number (Race Track) Loans Revenue Bonds Debt Service Stim. Debt Svc. Debt Service: (Function 9200) Redemption of Principal ,610, ,405, ,205, Interest ,215, ,331, ,884, Dues and Fees , , , Miscellaneous Expenses 790 TOTAL APPROPRIATIONS ,396, ,736, ,657, , OTHER FINANCING USES: Transfers Out: (Function 9700) To General Fund 910 To Capital Projects Funds 930 To Special Revenue Funds 940 Interfund (Debt Service Only) 950 To Permanent Fund 960 To Internal Service Funds 970 To Enterprise Funds 990 Total Transfers Out 9700 TOTAL OTHER FINANCING USES Nonspendable Fund Balances, June 30, Restricted Fund Balances, June 30, ,061, , ,779, , Committed Fund Balances, June 30, Assigned Fund Balances, June 30, Unassigned Fund Balances, June 30, TOTAL ENDING FUND BALANCES ,061, , ,779, , TOTAL APPROPRIATIONS, OTHER FINANCING USES, AND FUND BALANCES 262,457, ,504, ,437, , ESE 139 The School District of Palm Beach County, Florida

65 2-37 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 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 3290 Total Federal Sources 3200 STATE SOURCES: CO & DS Distributed , , Interest on Undistributed CO & DS 3325 Racing Commission Funds 3341 Public Education Capital Outlay (PECO) ,443, ,443, Classrooms First Program 3392 School Infrastructure Thrift Program 3393 Effort Index Grants 3394 Smart Schools Small County Asst. Program 3395 Class Size Reduction/Capital Funds 3396 Charter School Capital Outlay Funding ,458, ,458, Other Miscellaneous State Revenue 3399 Total State Sources ,865, ,443, , ,458, LOCAL SOURCES: District Local Capital Improvement Tax ,017, ,017, Local Sales Tax ,347, ,347, Tax Redemptions 3421 Interest, Including Profit on Investment ,500, , , Gifts, Grants, and Bequests 3440 Miscellaneous Local Sources , , Impact Fees ,739, ,739, Refunds of Prior Year Expenditures 3497 Total Local Sources ,624, ,767, ,857, TOTAL ESTIMATED REVENUES 277,490, ,443, , ,767, ,316, OTHER FINANCING SOURCES Sale of Bonds ,700, ,700, Loans 3720 Sale of Capital Assets 3730 Loss Recoveries 3740 Proceeds of Certificates of Participation ,666, ,666, Transfers In: From General Fund 3610 From Debt Service Funds 3620 From Special Revenue Funds 3640 Interfund (Capital Projects Only) ,242, ,242, From Permanent Fund 3660 From Internal Service Funds 3670 From Enterprise Funds 3690 Total Transfers In ,242, ,242, TOTAL OTHER FINANCING SOURCES 100,608, ,700, ,242, ,666, Fund Balances, July 1, ,968, ,330, ,549, ,088, TOTAL ESTIMATED REVENUES, OTHER FINANCING SOURCES, AND FUND BALANCES 720,068, ,700, ,443, ,294, ,316, ,647, ,666, ESE 139 The School District of Palm Beach County, Florida

66 2-38 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 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 ,965, ,182, ,147, ,969, ,666, Furniture, Fixtures, and Equipment ,671, ,574, ,096, Motor Vehicles (Including Buses) 650 4,167, ,116, , Land 660 4,169, , ,043, Improvements Other Than Buildings 670 8,854, ,808, ,046, Remodeling and Renovations ,933, , ,294, ,855, ,266, Computer Software 690 1,346, ,315, , Redemption of Principal 710 9,000, ,000, Interest 720 3, , Dues and Fees , , TOTAL APPROPRIATIONS 467,699, ,700, ,294, ,093, ,946, ,666, OTHER FINANCING USES: Transfers Out: (Function 9700) To General Fund ,125, ,443, ,223, ,458, To Debt Service Funds ,000, ,000, To Special Revenue Funds 940 Interfund (Capital Projects Only) ,242, ,242, To Permanent Fund 960 To Internal Service Funds 970 To Enterprise Funds 990 Total Transfers Out ,368, ,443, ,223, ,701, TOTAL OTHER FINANCING USES 252,368, ,443, ,223, ,701, Nonspendable Fund Balances, June 30, Restricted Fund Balances, June 30, Committed Fund Balances, June 30, Assigned Fund Balances, June 30, Unassigned Fund Balances, June 30, TOTAL ENDING FUND BALANCES 2700 TOTAL APPROPRIATIONS, OTHER FINANCING USES, AND FUND BALANCES 720,068, ,700, ,443, ,294, ,316, ,647, ,666, ESE 139 The School District of Palm Beach County, Florida

67 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 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 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 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 Debt Service 9200 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 To Special Revenue Funds 940 To Internal Service Funds 970 To Enterprise Funds 990 Total Transfers Out 9700 TOTAL OTHER FINANCING USES Nonspendable Fund Balance, June 30, Restricted Fund Balance, June 30, Committed Fund Balance, June 30, Assigned Fund Balance, June 30, Unassigned Fund Balance, June 30, TOTAL ENDING FUND BALANCE 2700 TOTAL APPROPRIATIONS, OTHER FINANCING USES, AND FUND BALANCE ESE

68 2-40 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 SECTION X. ENTERPRISE FUNDS Page ESTIMATED REVENUES Account Self-Insurance Self-Insurance Self-Insurance Self-Insurance Self-Insurance Other Enterprise Other Enterprise Number Totals Consortium Consortium Consortium Consortium Consortium Programs Programs OPERATING REVENUES: Charges for Services 3481 Charges for Sales 3482 Premium Revenue 3484 Other Operating Revenue 3489 Total Operating Revenues NONOPERATING REVENUES: Interest, Including Profit on Investment 3430 Gifts, Grants, and Bequests 3440 Other Miscellaneous Local Sources 3495 Loss Recoveries 3740 Gain on Disposition of Assets 3780 Total Nonoperating Revenues Transfers In: From General Fund 3610 From Debt Service Funds 3620 From Capital Projects Funds 3630 From Special Revenue Funds 3640 Interfund Transfers (Enterprise Funds Only) 3650 From Permanent Fund 3660 From Internal Service Funds 3670 Total Transfers In 3600 Net Assets, July 1, TOTAL OPERATING REVENUES, NONOPERATING REVENUES, TRANSFERS IN, AND NET ASSETS ESTIMATED EXPENSES Object OPERATING EXPENSES: (Function 9900) Salaries 100 Employee Benefits 200 Purchased Services 300 Energy Services 400 Materials and Supplies 500 Capital Outlay 600 Other Expenses (including depreciation) 700 Total Operating Expenses NONOPERATING EXPENSES: (Function 9900) Interest 720 Loss on Disposition of Assets 810 Total Nonoperating Expenses Transfers Out: (Function 9700) To General Fund 910 To Debt Service Funds 920 To Capital Projects Funds 930 To Special Revenue Funds 940 Interfund Transfers (Enterprise Funds Only) 950 To Permanent Fund 960 To Internal Service Funds 970 Total Transfers Out 9700 Net Assets, June 30, TOTAL OPERATING EXPENSES, NONOPERATING EXPENSES, TRANSFERS OUT, AND NET ASSETS ESE 139 The School District of Palm Beach County, Florida

69 2-41 DISTRICT SCHOOL BOARD OF PALM BEACH COUNTY DISTRICT SUMMARY BUDGET For Fiscal Year Ending June 30, 2011 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 ,205, ,205, Charges for Sales 3482 Premium Revenue ,998, ,998, Other Operating Revenue ,294, ,294, Total Operating Revenues 196,498, ,292, ,205, NONOPERATING REVENUES: Interest, Including Profit on Investment , , Gifts, Grants, and Bequests 3440 Other Miscellaneous Local Sources , , Loss Recoveries 3740 Gain on Disposition of Assets 3780 Total Nonoperating Revenues 283, , Transfers In: From General Fund 3610 From Debt Service Funds 3620 From Capital Projects Funds 3630 From Special Revenue Funds 3640 Interfund Transfers (Internal Service Funds Only) 3650 From Permanent Fund 3660 From Enterprise Funds 3690 Total Transfers In 3600 Net Assets, July 1, ,754, ,736, , TOTAL OPERATING REVENUES, NONOPERATING REVENUES, TRANSFERS IN, AND NET ASSETS 208,536, ,312, ,223, ESTIMATED EXPENSES Object OPERATING EXPENSES: (Function 9900) Salaries ,440, , ,923, Employee Benefits 200 8,064, , ,874, Purchased Services 300 3,690, ,090, ,600, Energy Services , , Materials and Supplies , , , Capital Outlay , , Other Expenses (including depreciation) ,094, ,064, , Total Operating Expenses 195,095, ,871, ,223, NONOPERATING EXPENSES: (Function 9900) Interest 720 Loss on Disposition of Assets 810 Total Nonoperating Expenses Transfers Out: (Function 9700) To General Fund 910 To Debt Service Funds 920 To Capital Projects Funds 930 To Special Revenue Funds 940 Interfund Transfers (Internal Service Funds Only) 950 To Permanent Fund 960 To Enterprise Funds 990 Total Transfers Out 9700 Net Assets, June 30, ,440, ,440, TOTAL OPERATING EXPENSES, NONOPERATING EXPENSES, TRANSFERS OUT, AND NET ASSETS 208,536, ,312, ,223, ESE 139 The School District of Palm Beach County, Florida

70 2-42

71 SCHOOL DISTRICT 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, property taxpayers shoulder much of the cost of K-12 education in Palm Beach County. Of the total $1.3 billion provided to Palm Beach County Schools via the Florida Education Funding Program (FEFP) for , local real estate taxes will contribute $851 million, or 68%. The statewide average local contribution is 46%. 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 was only 5.57% and in 2008 and 2009 the taxable value fell by 1.17% and 11.17%, respectively. Another 9.87% drop in total taxable value took place in tax year The total taxable value for the current year is decreasing by $14.8 billion, from $149.5 billion in 2009 to $134.7 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 3.1% in order to generate enough funding, increasing the millage rate from in 2009 to for Even with this increase, revenues generated by the RLE are dropping by an estimated $47.4 million. In addition to the increase in state required local effort, the local board millage rate structure has changed significantly since The allowable base capital millage rate was decreased from 2.0 mills to 1.75 mills in 2008 and from 1.75 mills to 1.5 mills in 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.928 mills for operating needs. The mills will levy $203.0 million for capital needs, a $59.4 million decrease from $262.4 million levied for

72 SCHOOL DISTRICT TAXES Total Millage The total millage rate for the 2010 tax year is mills, up from mills for This increase, assessed on a smaller tax base, will generate $79.0 million less in revenues than in The millage rate needed to generate the same tax proceeds as 2009 is mills. The assessed millage is 7.98% 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 $225,000 and eligible for the homestead exemption of $25,000 will pay $34.20 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. 3-2

73 COMPARISON OF PALM BEACH COUNTY GROSS TAXABLE VALUE Comparison of Taxable Value $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 2006 $161,252,193,452 $30,989,450, % ,229,136,344 8,976,942, % ,237,902,004 (1,991,234,340) -1.17% ,448,533,249 (18,789,368,755) % 2010 $134,698,183,829 ($14,750,349,420) -9.87% * Gross Taxable Value as of budget adoption. 3-3

74 COMPARISON OF TO MILLAGE RATES Comparison of Millage Rates Critical Capital Outlay Needs Disc. Capital Improvement Local Capital Improvement Critical Operating Needs Discretionary Operating Prior Period Funding Adj. Required Local Effort Mills Millage Millage Increase/ By State Law Rate Rate (Decrease) Required Local Effort (RLE) Prior Year RLE Adjustment Sub-Total State By Local Board Discretionary Operating Critical Operating Needs Local Capital Improvement Discretionary Capital Improvement (0.0280) Critical Capital Outlay Needs (0.2500) Sub-Total Local Total Millage

75 COMPARISON OF TO MILLAGE AND ROLLED BACK RATE Millage Comparison Required Local Effort Prior Period Funding Adj Discretionary Operating Critical Operating Needs Local Capital Improvement Discretionary Cap Outlay Critical Cap Outlay Needs % Incr/(Decr) Rolled Back As Compared To Millage Millage Millage Rolled Back Rate Rate Rate Millage Rate Taxable Value $148,119,912,585 * $134,698,183,829 ** (9.06%) By State Law Required Local Effort (RLE) (7.23%) Prior Year RLE Adjustment % Sub-Total State (7.10%) By Local Board Discretionary Operating (6.03%) Critical Operating Needs Local Capital Improvement (9.91%) Discretionary Capital Outlay (35.66%) Critical Capital Outlay Needs (100.00%) Sub-Total Local (9.91%) Total Millage (7.98%) * Final Certification of Taxable Value for ** Certification of School Taxable Value 7/1/

76 COMPARISON OF HOMEOWNER PROPERTY TAXES TAX YEAR 2009 TO Tax Year 2010 Tax Year Sample Home Sample (With No Increase Home in Assessed Value) Assessed Value $225,000 $225,000 Homestead Exemption 25,000 25,000 Taxable Value $200,000 $200,000 Millage Taxes Millage Taxes By State Law Required Local Effort $1, $1, Prior Year RLE Adjustment Sub-Total State $1, $1, By Local Board Discretionary Operating Critical Operating Needs Local Capital Improvement Discretionary Capital Improvement Critical Capital Outlay Needs Sub-Total Local $ $ Total Millage $1, $1, Increase from prior year due to increase in millage rates: $

77 MILLAGE RATES AND HOMEOWNER PROPERTY TAXES Five Year History Sample Homeowner Property Taxes Based on an Assessed Value of $225,000 with a $25,000 Homestead Exemption: Assessed Value $225,000 Homestead Exemption 25,000 Taxable Value $200,000 By State Law Millage Taxes Millage Taxes Millage Taxes Millage Taxes Millage Taxes Required Local Effort $1, $ $ $1, $1, Prior Year RLE Adjustment Sub-Total State $1, $ $ $1, $1, By Local Board Discretionary Operating Additional Discretionary Critical Operating Needs Local Capital Improvement Discretionary Capital Improveme Critical Capital Outlay Needs Sub-Total Local $ $ $ $ $ By Voter Approval Debt Service Total Millage $1, $1, $1, $1, $1, 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 * $161,252,193,452 $170,229,136,344 $168,237,902,004 $149,448,533,249 $134,698,183,829 Property Taxes Levied Tax Collections ** Required Local Effort Prior Year Required Local Effort Discretionary Operating Additional Discretionary Critical Operating Needs Local Capital Improvement Discretionary Capital Outlay Critical Capital Outlay Needs Debt Service Total Collections $1,269,377,267 $779,581,792 78,126,688 17,310, ,379,168 24,510,333 $1,252,205,527 $1,219,893,027 $767,026,954 $782,827,782 $772,491,996 $724,525,368 6,246,949 6,853,444 82,476,017 79,593,351 92,284,469 87,672,354 16,656,921 16,781,731 32,327, ,435, ,695, ,964, ,965,385 13,913,658 9,051,718 35,494,027 $1,205,908,404 $1,189,595,251 $1,158,898,376 $1,193,047,641 $1,133,395,259 $1,098,328,991 $1,054,395,834 * Gross Taxable Value as of budget adoption. ** Based upon 95% collectability of Palm Beach County's Gross Taxable Value from 2006 through 2009 and 96% in

78 Notice of Proposed Property Taxes Owner Name Owner Address Owner City, State DR-474 R 6/10 Rule Florida Administrative Code The taxing authorities which levy property taxes against your property will soon hold PUBLIC HEARINGS to adopt budgets and tax rates for the next year. Legal Description of Property The purpose of these PUBLIC HEARINGS is to receive opinions from the general public and to answer questions on the proposed tax change and budget PRIOR TO TAKING FINAL ACTION. Each Taxing authority may AMEND or ALTER its proposals at the hearing. NOTICE OF PROPOSED PROPERTY TAXES DO NOT PAY. THIS IS NOT A BILL Taxing Authority Last Year's Adjusted Tax Rate (Millage) Your Property Taxes Last Year Your Tax Rate This Year IF PROPOSED Budget is Adopted (Millage) Your Taxes This Year IF PROPOSED Budget Change is Adopted Your Tax Rate This Year IF NO Budget Change is Adopted (Millage) Your Taxes This Year IF NO Budget Change is Adopted County , , , Public Schools: By State Law By Local Board , , , A Public Hearing on the Proposed Taxes and Budget Will Be Held: 9/14 6:00 PM (561) N. OliveAve. 6th Fl WPB /07 5:05 PM (561) Forest Hill Blvd WPB Municipality Water Management Independent Districts Voted Levies for Debt Service Total Property Taxes , , , Column 1* Column 2* Column 3* *SEE REVERSE SIDE FOR EXPLANATION 3-8

79 DR-474 R 6/10 PROPERTY VALUATION Last Year This Year Market Value 249, ,000 Taxing Authority* County Assessed Value Exemptions Taxable Value Last Year This Year Last Year This Year Last Year This Year 249, ,000 50,000 50, , ,000 Public Schools By State Law By Local Law 249, ,000 25,000 25, , ,000 Municipality 249, ,000 50,000 50, , ,000 Water Management 249, ,000 50,000 50, , ,000 Independent Districts 249, ,000 50,000 50, , ,000 Voted Levies for Debt Service Assessment Reductions Save our Homes Assessment Cap-2.7 percent in 2010 Applies to All Taxing Authorities Value Exemptions Homestead Additional Homestead Applies to All Taxing Authorities Non-School Taxing Authorities Value 25,000 25,000 If you feel that the market value of your property is inaccurate or does not reflect fair market value, or if you are entitled to an exemption or classification that is not reflected above, contact your county property appraiser at (561) or 301 North Olive Avenue, West Palm Beach, FL If the property appraiser's office is unable to resolve the matter as to market vlue, classification, or an exemption, you may file a petition for adjustment with the Value Adjustment Board. Petition forms are available from the county property appraiser and must be filed ON OR BEFORE 5:00 PM September 16,

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83 GENERAL FUND General Fund Overview 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 $1,450,494,334, a $54.4 million increase over the budget. The budget is allocated to the following functions: Fiscal Year 2011 Community Services 2.5% Administrative Support 7.3% Contingency 3.1% Central Support 17.1% Instructional Support 6.3% Instructional 63.7% 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 $1,257,822,400. Of that amount, the state is funding $406,443,671, and local real estate taxes are funding $851,378,729. Under the State s education budget, Palm Beach County property taxpayers fund 67.7% of the county s education costs. 4-1

84 GENERAL FUND American Recovery and Reinvestment Act 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 $59,704,413. 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 , $423,393,642, or 33.7% of the district s total operating budget, is earmarked for class size reduction, Exceptional Student Education, Supplemental Academic Instruction, instructional materials, transportation, reading and other specific uses. Revenue Forecasting Revenue forecasting focuses on student enrollment projections and funding sources. Student Enrollment 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 proceeds, 50% of the state s education funding depends on state sales tax receipts. It is uncertain when the revenue trend will turn around. For , state stabilization funding played a large role in maintaining level funding for K-12 education. The state has set aside an equivalent amount for , in order to smooth out funding during the current economic downturn. In the event that sales tax revenues do not revive enough to replace state stabilization funding, the district is planning for the loss of state stabilization funding beginning in Property Tax Revenue The other 50% of FEFP funding statewide is derived from local property taxes. The taxable value of property in Palm Beach County fell 11.17% since last year, as a result of the economic downturn and increasing foreclosure rates. The shrinking tax base places pressure on the funding mechanism for education. The electorate is resistant to raising tax rates, although rates did increase for the current fiscal year. The timing of a recovery from the downturn will determine when property values begin to rise again. 4-2

85 GENERAL FUND BUDGET TENTATIVE REVENUE & APPROPRIATIONS ($000,000) The General Fund Operating Budget accounts for the day-to-day operation of school centers, area offices and central offices. Included are costs for employee salaries, fringe benefits, textbooks, supplies, equipment, utilities, and other expenses for the direct operation of schools and departments for the fiscal year. REVENUE Tentative Budget % of Total Federal Sources $ % State Sources % Local Sources % Transfer from Capital % Fund Balance % TOTAL REVENUE $1, % Transfer from Capital Tentative Revenue Fund Balance Federal Sources State Sources Local Sources APPROPRIATIONS Tentative % of Budget Total Salaries and Fringe $1, % Purchased Services % Energy Services % Materials & Supplies % Capital % Other Expenses % Sub-Total $1,406.1 Fund Balance & Transfers % TOTAL BUDGET $1, % Materials & Supplies Capital Energy Fund Balance & Transfers Tentative Appropriations Other Purchased Services Salaries and Fringe 4-3

86 GENERAL FUND APPROPRIATIONS COMPARISON OF FY 2010 TO FY 2011 FY 2010 FY 2011 State Year-end Tentative Increase/ Category * Function Appropriations Appropriations (Decrease) Instruction Instruction 5000 $ 866,282,209 $920,526,511 $54,244,302 * Total Instruction: $866,282,209 $920,526,511 $54,244,302 Instructional Support Services Pupil Personnel Services ,045,198 34,559, ,353 Instructional Media Services ,238,306 17,560, ,374 Instruction & Curriculum Dev. Serv ,857,818 22,366,740 (2,491,077) * Instructional Staff Training Services ,201,700 12,762,936 (2,438,764) * Instruction Related Technology ,275,817 3,557, ,835 Total Instructional Support Services: $94,618,838 $90,807,559 ($3,811,279) Central Support Services Facilities Acquisition & Construction ,530, ,721 (684,744) Fiscal Services ,012,054 5,730,964 (1,281,090) Food Services ,345 27,345 Central Services ,376,427 20,437,895 4,061,468 * Pupil Transportation Services ,441,714 37,832,707 (1,609,006) * Operation of Plant ,597, ,778,006 1,180,599 Maintenance of Plant ,105,002 69,295,845 1,190,843 Admin Technology Services ,001,034 10,493, ,716 Debt Service , ,921 (206,246) Total Central Support Services: $246,550,270 $249,722,154 $3,171,885 Administrative Support Services Board ,113,669 6,483,126 (630,543) General Administration ,647,130 6,232,654 (1,414,476) School Administration ,350,411 96,212,038 2,861,627 * Total Administrative Support Services: $108,111,211 $108,927,818 $816,607 Community Services Community Services ,614,646 36,141,128 (473,519) Total Community Services: $36,614,646 $36,141,128 ($473,519) Countywide Reserves/Transfers Board Contingency Fund ,369,164 44,369,164 0 Transfers Out Total Countywide Reserves/Transfers: $44,369,164 $44,369,164 $0 GRAND TOTAL $1,396,546,338 $1,450,494,334 $53,947,996 * Descriptions of these functional areas as defined by the State Department of Education's Financial and Program Cost Accounting manual ("Red Book") are on the following pages. Variations greater than one tenth of one percent of the total budget, (.1% * $1,450,494,334 = $1,450,494),are also explained. 4-4

87 DEFINITION OF APPROPRIATION CLASSIFICATIONS AND EXPLANATION OF GENERAL FUND APPROPRIATION VARIANCES The following pages explain the different functional areas in which the school district accounts for its operations. The descriptions are from the State Department of Education s Redbook. These descriptions are intended to provide insight into the preceding appropriation comparison pages. The bold face type indicates explanations of variances greater than one tenth of one percent ($1,450,494) when comparing the FY 2010 budget to FY 2011 tentative budget. The overall increase from the FY 2010 budget to the FY 2011 tentative budget is $53,947, Instruction. Instruction includes the activities dealing directly with the teaching of pupils, or the interaction between teacher and pupils. Included here are the activities of aides or assistants of any type which assist in the instructional process. Instruction encompasses the following: 5100 Basic (FEFP K-12), 5200 Exceptional, 5300 Vocational-Technical, 5400 Adult General, 5500 Pre-kindergarten and 5900 Other Instruction. A projected student enrollment increase of 2,248, increasing FRS and health insurance benefit costs, and set asides for a potential class size penalty and a $500 one-time payment to teachers account for the $54.2 million increase to this category Instructional Support Services. Provides administrative, technical (such as guidance and health), and logistical support to facilitate and enhance instruction. Instructional Support Services encompasses the following: 6100 Pupil Personnel Services. Those activities which are designed to assess and improve the well being of pupils and to supplement the teaching process. Pupil Personnel Services encompasses the following: Attendance and Social Work; Guidance Services; Health Services; Psychological Services; Parental Involvement; and Other Pupil Personnel Services 6200 Instructional Media Services. Consists of those activities concerned with the use of all teaching and learning resources, including hardware and content materials Instruction and Curriculum Development Services. Activities designated to aid teachers in developing the curriculum, preparing and utilizing special curriculum materials, and understanding and appreciating the various techniques which stimulate and motivate pupils. Included in this function are the following instructional support specialists: primary, technology, learning resource, and behavioral. The decrease in this function is related to a shift in allocation by function for sick and annual leave payouts Instructional Staff Training Services. Activities designed to contribute to the professional or occupational growth and competence of members of the instructional staff during the time of their service to the school board or school. Among these activities are workshops, demonstrations, school visits, courses for college credits, sabbatical leaves, and travel leaves. 4-5

88 DEFINITION OF APPROPRIATION CLASSIFICATIONS AND EXPLANATION OF GENERAL FUND APPROPRIATION VARIANCES 6400 Instructional Staff Training Services (continued) A reduction to staff development substitute day allocations and a restructuring of coach allocations account for the decrease to this category Instruction Related Technology. Technology activities and services for the purpose of supporting instruction. These activities include expenditures for internal technology support as well as support provided by external vendors using operating funds. These activities include costs associated with the administration and supervision of technology personnel, systems planning and analysis, systems application development, systems operations, network support services, hardware maintenance and support services, and other technology-related costs that are related to the support of instructional activities. Specifically, costs associated with the operation and support of computer learning labs, media center computer labs, instructional technology centers, instructional networks, and similar operations should be captured in this code General Support Services. Consist of those activities concerned with establishing policy, operating schools and the school system, and providing the essential facilities and services for the staff and pupils Board. Consists of the activities of the elected or appointed body which has been created according to state law and vested with responsibilities for educational activities in a given administrative unit. Also included here are expenses of Board Attorney and other legal services, independent auditors, internal auditors that report directly to the Board, negotiators, lobbyists, etc General Administration (Superintendent s Office). Consists of those activities performed by the superintendent and assistant superintendents in general direction and management of all affairs of the school system. This includes all personnel and materials in the office of the superintendent School Administration (Office of the Principal). Consists of those activities concerned with directing and managing the operation of a particular school. It includes the activities performed by the principal, assistant principal, and other assistants in general supervision of all operations of the school, evaluations of staff. The loss of State Stabilization Funds for adult education in FY 2011 caused the transfer of community school secretary positions back to general fund workforce development funds, (non-k-12 funds). Additionally, increased fringe benefit costs, as well as the opening of Everglades Elementary, contributed to the increase in this functional category Fiscal Services. Consists of those activities concerned with fiscal operation of the school system. This function includes budgeting, receiving and disbursing cash, financial accounting, payroll, inventory control, and internal auditing. 4-6

89 DEFINITION OF APPROPRIATION CLASSIFICATIONS AND EXPLANATION OF GENERAL FUND APPROPRIATION VARIANCES 7700 Central Services. Activities, other than general administration, which support each of the other instructional and supporting services programs. These activities are defined in the following sub-functions: 7710 Planning, Research, Development, and Evaluation Services; 7720 Information Services; 7730 Staff Services; 7740 Statistical Services; 7760 Internal Services; and 7790 Other Central Services. The annual reserve for Value Adjustment Board adjustments is increased by $4.4 million for FY 2011, in response to the large increase in adjustments for FY Pupil Transportation Services. Consists of those activities which have as their purpose the conveyance of pupils to and from school activities, either between home and school, school and school, or on trips for curricular or co-curricular activities. Transportation department budget reductions offset the increase in benefit costs for a net savings of $1.6 million Operation of Plant. Consists of activities concerned with keeping the physical plant open and ready for use. Major components of this function are utilities, including telephone service, custodial costs, and insurance costs associated with the school buildings. Includes cleaning, disinfecting, heating, moving furniture, caring for grounds, security and other such activities that are performed on a daily, weekly, monthly or seasonal basis Maintenance of Plant. Consists of activities that are concerned with keeping the grounds, buildings, and equipment at an acceptable level of efficiency through repairs or preventative maintenance Administrative Technology Services. Technology activities that support the school district s information technology systems, including support of the administrative networks, maintenance of administrative information systems, and administrative and managerial data processing. These activities include expenditures for internal technology support, as well as support provided by external vendors using operating funds. These activities include costs associated with the administration and supervision of technology personnel, systems planning and analysis, systems application development, systems operations, network support services, hardware maintenance and support services, and other technology-related administrative costs Community Services. Community Services consist of those activities that are not related to providing education for pupils in a school system. These include services provided by the school system for the community as a whole or some segment of the community, such as community recreation programs, civic activities, public libraries, programs of custody and care of children, and community welfare activities Debt Service. Expenditures for the retirement of debt and expenditures for interest on debt including interest on current loans. 4-7

90 DEFINITION OF APPROPRIATION CLASSIFICATIONS AND EXPLANATION OF GENERAL FUND APPROPRIATION VARIANCES 9700 Transfer of Funds. These are budgeted transactions which withdraw money from one fund and place it in another fund within the same government reporting entity Ending Fund Balance. The excess of total projected revenue and beginning fund balance over the total appropriations. This ending fund balance may be designated or designated. 4-8

91 GENERAL FUND REVENUE AND EXPENDITURES FIVE YEAR HISTORY REVENUE Estimated Actual Actual Actual Actual Revenue Total Federal Revenue $4,594,540 $ 2,224,728 $6,406,783 $ 5,935,374 $4,706,000 Total State Revenue 353,121, ,743, ,884, ,919, ,721,202 Total Local Revenue 941,056, ,417, ,598, ,515, ,300,867 Total Other Revenue 3,771,724 4,067,925 2,802,742 4,072,584 Total Transfers In 43,620,950 63,452,897 61,325,216 79,692,945 81,125,392 Beginning Fund Balance 99,185, ,575, ,719,670 92,411, ,640,873 TOTAL REVENUE, TRANSFERS, & FUND BALANCE $1,445,350,955 $1,525,481,494 $1,468,736,660 $1,396,546,338 $1,450,494,334 EXPENDITURES Tentative Function Actual Actual Actual Actual Appropriations Instructional Services 5000 $850,533,630 $ 880,382,502 $879,909,609 $ 839,310,935 $920,526,511 Support Services: Pupil Personnel ,217,577 42,627,746 41,612,018 33,397,576 34,559,550 Media Services ,354,851 19,043,189 18,695,327 16,109,452 17,560,680 Curriculum Development ,234,470 31,805,431 32,169,121 23,996,550 22,366,740 Instructional Staff Training ,973,881 14,283,930 14,002,550 12,513,310 12,762,936 Instr. Related Technology ,897,629 4,874,310 4,557,557 2,895,298 3,557,652 Board of Education ,946,108 8,130,014 5,169,247 5,578,853 6,483,126 General Administration ,890,965 8,147,583 7,274,960 7,363,524 6,232,654 School Administration ,715,536 97,168,283 96,097,062 93,237,725 96,212,038 Fac. Acquisition & Constr ,153 2,410,531 1,379,333 2,536, ,721 Fiscal Services ,784,567 5,874,534 5,828,120 6,192,292 5,730,964 Food Services ,345 Central Services ,051,289 14,794,350 14,068,826 15,363,023 20,437,895 Pupil Transportation ,065,782 51,397,648 44,210,090 39,332,418 37,832,707 Operations of Plant ,101, ,083, ,427,541 97,614, ,778,006 Maintenance of Plant ,633,796 50,422,211 46,190,284 60,702,315 69,295,845 Administrative Tech Svcs ,121,887 5,513,478 5,450,668 9,533,172 10,493,750 Community Services ,167,552 30,240,081 29,148,357 26,741,817 36,141,128 Debt Service ,615,932 3,562,878 2,132, , ,921 Total Instructional & Support Serv. $1,333,775,883 $1,404,761,824 $1,376,323,461 $1,292,905,466 $1,406,125,170 Transfers to Capital Reserves & Ending Fund Balance 1, ,575, ,719,670 92,411, ,640,873 44,369,164 TOTAL EXPENDITURES, TRANSFERS & FUND BALANCE $1,445,350,955 $1,525,481,494 $1,468,736,660 $1,396,546,338 $1,450,494,

92 GENERAL FUND BUDGET FUND BALANCE AND CONTINGENCY RESERVE Fund Balance $125,000,000 $100,000,000 $75,000,000 $50,000,000 $25,000,000 $ Year Reserved/Designated Contingency Reserve Undesignated Reserved/ Designated Board Undesignated Total Adopted Contingency Fiscal Fund Contingency Fund Fund Gen. Fund % of Year Balance Reserve Balance Balance Appropriations G/F Approp ,741,597 22,742,000 10,352,241 61,835, ,117, % ,108,244 29,252,000 35,241,963 88,602, ,078, % ,945,955 31,600,000 29,686,566 82,232,521 1,053,070, % ,207,744 31,600,000 36,316,718 89,124,462 1,134,753, % ,083,405 29,588,516 39,963,269 93,635,190 1,232,201, % ,450,991 39,400,000 37,334,858 99,185,849 1,312,820, % ,906,580 39,400,000 33,268, ,575,071 1,406,148, % ,813,452 39,400,000 48,506, ,719,670 1,448,279, % ,504,737 39,400,000 38,506,563 92,411,299 1,434,819, % ,754,807 44,369,164 33,516, ,640,873 1,273,284, % Projected ,750,000 44,369,164 33,510, ,629,164 1,346,865, % Contingency Reserve Policy: To enhance the financial integrity of the District, adequate funds for contingency reserves are maintained to meet unexpected and emergency needs for funds. It is critical for any organization to have the ability to provide for unanticipated financial needs and to avoid a budget deficit. The School Board policy P-2.55 requires a contingency reserve within the General Fund equal to three (3) percent of the total General Fund appropriations and outgoing transfers. The contingency reserve is controlled solely by the School Board and requires a super majority vote to access these funds. 4-10

93 4-11

94 Florida Education Finance Program (FEFP) Detail * Year-end Original Year-end FY 2009 FY 2010 FY 2010 FY 2011 Variance SB 2600 Increase/ Fourth Calc. Second Fourth Calc. Second Decrease 5/1/2009 Calculation 4/12/2010 Calculation FY11 vs. FY10 1 K-12 Unweighted FTE's 169, , , , , K-12 Weighted FTE's (Funded) 182, , , , , Prevalence State Base Student Alloc (BSA) $3, $3, $3, $3, (6.86) 4 District Cost Differential (DCD) Palm Beach County Schools BSA $4, $3, $3, $3, ($1.33) 6 WTD FTE x BSA x DCD $735,407,563 $682,328,739 $694,948,078 $707,575,396 $12,627,318 7 ESE BLOCK GRANT 70,298,550 64,677,064 64,677,064 65,435, ,519 8 SAI 35,733,476 33,165,989 33,165,989 33,651, ,302 9 Reading Instruction 6,955,264 6,482,328 6,558,791 6,600,576 41, Safe Schools 4,871,239 4,384,394 4,397,934 4,471,868 73, Merit Award Allocation 118, , ,659 89,358 (35,301) 12 Equal Percent Adjustment (249,265) Declining Enrollment Supplement 0 1,190, DJJ Supplemental Funding 375, , , ,806 8, Equal Percent Adjustment Instructional Materials (moved to Base FEFP in FY10) 13,582,990 14,229,324 14,263,096 33, Transportation (moved to Base FEFP in FY10) 25,391,136 25,322,843 25,411,633 88, Teacher Lead (moved to Base FEFP in FY10) 2,166,880 2,166,880 2,203,706 36, Federal Stabilization 60,872,023 61,599,829 59,704,413 (1,895,416) 20 Proration for Veto (388,260) Proration for revised appropriations (920,227) DOE Prorated Holdback (1,198,895) (5,938,389) 0 5,938, Gross State and Local FEFP $852,311,449 $893,417,337 $901,583,514 $919,745,726 $18,162, Less: Required Local Effort Taxes (784,057,864) (772,491,996) (772,491,996) (724,525,367) 47,966, Total State FEFP $68,253,585 $120,925,341 $129,091,518 $195,220,359 $66,128,841 % Funded Locally 91.99% 86.46% 85.68% 78.77% District Lottery/School Recognition 26 Lottery - Discretionary 4,400, , ,843 4, Lottery - School Recog. $ 10,169,946 9,146,725 9,146,725 9,146, Total Lottery/School Recognition 14,570,197 9,146,725 9,649,352 9,653,568 4,216 Categorical Allocations 29 Instructional Materials 15,923, Student Transportation 27,236, Teacher Lead Program 2,348, Class Size Reduction 182,628, ,738, ,661, ,569,744 6,908, Total State Categorical Funding $228,137,730 $191,738,768 $194,661,443 $201,569,744 $6,908,301 Local Funding 34 Palm Beach County Tax Roll $168,502,259,637 $149,448,533,249 $149,448,533,249 $134,698,183,829 ($14,750,349,420) 35 Required Local Effort (RLE) 784,057, ,491, ,491, ,525,367 (47,966,629) 36 Prior Year Required Local Effort 6,246,949 6,246,949 6,853, , Discretionary Funds (Basic) 79,718,419 92,284,469 92,284,469 87,672,354 (4,612,115) 38 Discretionary Funds (Supp) 16,808, ,327,564 32,327, Total Local Funding $880,584,383 $871,023,414 $871,023,414 $851,378,729 ($19,644,685) 40 TOTAL FUNDING $1,191,545,895 $1,192,834,248 $1,204,425,727 $1,257,822,400 $53,396,673 Millage Rates Less Impact of 96% Collection Rate to Local Revenue: (8,312,815) $1,249,509, RLE Mills Prior Year RLE DM Mills-Base DM Mills-Supplemental Total Change from previous year ($55,148,214) $1,288,353 $11,591,479 $45,083,858 Less State Stabilization funding ($60,872,023) ($61,599,829) ($59,704,413) Overall general fund Budget Impact ($59,583,670) ($50,008,350) ($14,620,555) Total Funds per Unweighted FTE $7, $7, $7, $7, $169 * Excludes McKay Scholarships and prior year adjustments. 4-12

95 ANALYSIS OF GENERAL FUND REVENUE June 30, 2007 June 30, 2008 June 30, 2009 June 30, 2010 Second Calc. Increase/ Federal Revenue Year-End Year-End Year-End Year-End Projected (Decrease) Func. Description FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY10 to FY Impact Fees 10,922 12,397 3,272 7,002 6,000 (1,002) 3191 ROTC 611, , , , ,000 (147,929) 3202 Medicaid Reimbursement 3,834,260 1,648,536 5,488,075 5,180,443 4,100,000 (1,080,443) 3299 Hurricane Recovery Act 138, Sub-total 4,594,540 2,224,728 6,406,783 5,935,374 4,706,000 (1,229,374) State Revenue 3310 FEFP-FTE Generated (19,102,121) 17,274,697 (50,528,763) (82,616,382) (16,949,971) 65,666, ESE Block Grant 75,161,165 74,373,214 70,298,550 64,677,064 65,435, , Supplemental Academic Instr. 37,510,028 37,934,549 35,733,476 33,165,989 33,651, , ESE McKay Scholarships (5,791,993) (6,254,457) (6,088,613) (6,157,721) (6,157,721) Opportunity Scholarships (38,461) (20,895) Safe Schools 5,406,036 5,115,940 4,871,239 4,397,934 4,471,868 73, Reading Allocation 7,276,670 7,293,136 6,955,264 6,558,791 6,600,576 41, Merit Award Program (MAP) 9,860, , ,659 89,358 (35,301) 3310 Declining Enrollment 6,719, , DJJ Supplement 0 591, , , ,806 8, Instr Materials (moved from state categoricals) ,156,273 14,263, , Transporation (moved from state categoricals) ,322,843 25,411,633 88, Teacher Lead (moved from state categoricals) ,166,880 2,203,706 36, CO & DS 100,057 99,699 98,101 99, , State License Tax (Mobile Homes) 314, , , , ,000 30, Discretionary Lottery 7,072,291 8,631,112 4,390, , ,843 1, School Recognition Funds (fund 1101) 10,742,052 10,351,757 10,169,946 9,146,725 9,146, Voluntary Pre-K Program 3,007,376 1,812,372 1,695,068 1,865,876 3,562,928 1,697, Reading Programs 8, Charter School Capital Outlay 2,908, DCD Transition Supplement 379, , Other State Sources 407,118 98, , , ,000 (1,523) Sub-total 141,941, ,433,696 78,783,384 74,414, ,374,721 68,959,743 Adult Education 3315 Workforce Development 16,554,192 16,591,748 15,888,063 14,597,921 15,415, , Workforce Development Incent Prog 0 611, , , ,323 32, Adults With Disabilities (fund 1104) 1,508,606 1,392,559 1,241,057 1,009,546 1,127, ,874 Sub-total 18,062,798 18,596,049 17,396,823 15,808,782 16,776, ,955 State Categoricals 3334 Teacher Lead Program (moved to base FEFP) 2,909,316 3,034,667 2,348, Instructional Materials (mvd to base FEFP) 16,499,623 16,504,997 15,845, Transportation (moved to Base FEFP) 29,893,884 26,966,650 27,280, Excellent Teacher Program 3,396,409 5,443,462 3,601,306 33,829 0 (33,829) 3355 Class Size Reduction - Amend ,417, ,764, ,628, ,661, ,569,744 6,908,299 Sub-total 193,116, ,713, ,704, ,695, ,569,744 6,874,470 Local Revenue 3410 Taxes, RLE 787,596, ,029, ,738, ,827, ,525,369 (50,301,897) 3410 Taxes, Prior Year RLE ,246,949 6,853, , Taxes, Discretionary 79,644,632 79,182,787 79,718,419 92,284,469 87,672,354 (4,612,115) 3410 Taxes, Supplementary 17,698,807 17,596,175 16,808, ,327,564 32,327, Payment in Lieu of Taxes 59,894 34,961 37,481 40,370 40,000 (370) 3423 Excess Fees 373, , Tuition (Non-Resident) 1, Rent 615,598 1,163, , , ,000 (316,734) 3431 Interest Income 16,630,142 14,716,934 5,881,600 1,509, ,000 (709,904) 3440 Gifts, Grants, Bequests 0 2,004,621 1,637,684 1,557,686 1,200,000 (357,686) 3450 Food Services 369, , Miscellaneous Local Sources 13,661,897 18,042,550 18,969,437 16,454,453 11,587,136 (4,867,317) 3490 Erate (prog 3414) 0 2,496,530 2,805,670 3,579,417 3,800, , Microsoft settlement (prog 9953) 0 0 4,511, Sprint settlement (fund 1105) 0 5,000, Federal Indirect Costs 1,927,531 1,892,488 2,653,015 5,820,210 5,000,000 (820,210) 3499 Food Service Indirect Costs 1,000, ,833 1,078,809 1,253,578 1,000,000 (253,578) 3630 Transfer From Capital 43,620,950 60,724,859 61,325,216 79,692,945 81,125,392 1,432, Transfer From Special Revenue 0 2,728, Loss Recoveries 3,771,724 4,067,925 2,802,742 4,072,584 0 (4,072,584) 3066 Estimated Beginning Fund Balance 96,805, ,575, ,719,671 92,411, ,640,873 11,229,574 Sub-total 1,063,778,787 1,095,490,007 1,110,951,337 1,080,717,863 1,060,222,132 (20,495,731) Fee Revenue 3467 GED Testing Fees , , ,000 (19,335) 3469 Other Student Fees 1,403,761 1,453,812 1,528,908 1,778,837 1,685,000 (93,837) 3471 Preschool Program Fees 150, , , , , School Age Child Care Fees 19,922,192 21,569,316 21,538,085 22,705,043 21,500,000 (1,205,043) Sub-total 21,476,060 23,023,127 23,494,316 24,974,067 23,845,000 (1,129,067) TOTAL GENERAL FUND REVENUE 1,442,970,538 1,525,481,495 1,468,736,661 1,396,546,338 1,450,494,334 53,947,

96 Analysis of General Fund Appropriations Run-Rime: 08/26/2010 at 11:15 AM 1 FY 2007 FY 2008 FY 2009 Dept Expend. FTE* Expend. % Chg. FTE* Budget Expend. % Chg. FTE* SCHOOLS: Elementary Schools IONS 448,776,536 7, ,186,510 8, ,840, ,662,413 7,890.5 Middle Schools IONS 189,712,769 3, ,815,686 3, ,088, ,310,784 3,194.7 High Schools IONS 252,522,460 3, ,072,603 3, ,411, ,203,253 3,859.5 Virtual Schools IONS , , Alternative Education %,C 25,076, ,366, ,649,170 18,869, ESE Centers IONS 10,884, ,066, ,142,230 11,352, Charter Schools IONS 47,240,139 48,413,963 51,998,677 51,377,442 Charter School - Capital Outlay IONS 3,189,841 2,557,057 3,747,871 3,337,069 Adult Education %,C 12,794, ,870, ,366,668 12,259, Fee Based - School Age Child Care (SACC) IONS 19,154, ,551, ,499,921 19,650, Fee Based - Community Schools IONS 918, ,535 1,462, ,173 School Recognition IONS 10,825,182 10,504,507 11,151,777 10,295,442 Sub-Total Schools 1,021,096,133 15, ,073,372,634 5% 15, ,102,891,745 1,078,538,717 0% 15,673.6 DEPARTMENTS: Governance 5,695, ,993, ,402,543 5,825, Chief of Staff ,062 53, Chief Learning Officer 61,244, ,005, ,908,291 66,013, Chief Operating Officer 79,816,572 1, ,624,441 1, ,623,643 77,609,916 1,302.1 Sub-Total Departments 146,755,779 2, ,623,743 11% 2, ,000, ,502,254-8% 2,021.0 DISTRICT WIDE ITEMS / RESERVES: Countywide Telephone 5,212,373 5,658,355 5,100,000 3,936,059-30% District Earmarks 16,768, ,762, ,543,386 3,141, E.R. & D. Pilot 49,520 28, Early Retirement 369, , , ,410 Employees on Leave , , , Hurricane Prep & Recovery 140,995-12,181 12,177 Instructional Materials 14,559,926 13,713,772 15,990,712 14,047,742 Insurance 12,802,965 11,575,872 12,408,131 10,615,661 Internal Accounts Reimbursement 2,834,457 5,890,628 6,485,289 6,907,929 Inventory Reserve , ,421 Merit Award Program (MAP) Reserve 4,258, ,171 69,075 69,009 Performance Pay Reserve 4,902, ,374 80,676 95,197 TANS Issue 2,615,932 3,562,878 3,391,177 2,132,792 Teacher Lead 2,906,337 3,019,439 2,348,548 2,332,193 Terminal Leave / Annual Leave Payoff 3,426,338 19,689,172 11,100,000 11,951,694 Utilities 45,677,095 46,383,591 50,694,110 45,328,857 Water Control District 449, , , ,518 Worker's Compensation 16,140,081 Sub-Total District Wide 133,233, ,514,793-12% ,504, ,885,731-13% Contingency Fund ,400,000 - Capital Maintenance 42,664, ,212,374 20% ,938,354 46,390,814-9% Grand Total 1,343,750,159 18, ,404,723,543 5% 19, ,468,734,761 1,376,317,516-2% 18,499.7 * 1 FTE = 8.0 hours/day or 7.5 hours/day for CTA employees. 4-14

97 Analysis of General Fund Appropriations Run-Rime: 08/26/2010 at 11:15 AM 1 Dept SCHOOLS: Elementary Schools IONS Middle Schools IONS High Schools IONS Virtual Schools IONS Alternative Education %,C ESE Centers IONS Charter Schools IONS Charter School - Capital Outlay IONS Adult Education %,C Fee Based - School Age Child Care (SACC) IONS Fee Based - Community Schools IONS School Recognition IONS Sub-Total Schools Proposed to Amended FY 2010 Proposed 2011 Increase/(Decrease) Budget % Chg. Expend. FTE* Budget % Chg. FTE* Budget FTE* 455,788, ,674,445 6, ,965,653 7, ,177, ,167, ,932,518 2, ,329,123 2, ,161, ,761, ,251,054 3, ,326,872 3,590.7 (1,434,948) ,883,259 1,447, ,706, , ,386,221 17,026, ,756, (2,629,646) (1.2) 10,914,412 10,489, ,051, (863,301) ,249,258 54,942,758 56,974,607 1,725,349-3,683,185 3,671,711 3,465,647 (217,538) - 17,506,107 11,587, ,061, (4,444,818) ,441,220 18,342, ,491, (5,950,218) (18.0) 1,525, , ,736 (544,871) - 10,002,840 9,226,838 9,184,746 (818,094) - 1,041,309,508-6% 1,000,497,830 13, ,040,293,711 0% 14,124.6 (1,015,797) DEPARTMENTS: Governance Chief of Staff Chief Learning Officer Chief Operating Officer Sub-Total Departments 6,166,331 5,864, ,887, (279,037) - 366, , (366,074) (2.0) 70,517,003 63,867, ,663, (8,853,334) (41.1) 75,792,652 69,936,102 1, ,893,888 1,064.8 (2,898,765) (14.2) 152,842,061-4% 139,993,496 1, ,444,850-8% 1,678.1 (12,397,210) (57.3) DISTRICT WIDE ITEMS / RESERVES: Countywide Telephone District Earmarks E.R. & D. Pilot Early Retirement Employees on Leave 9921 Hurricane Prep & Recovery Instructional Materials Insurance Internal Accounts Reimbursement Inventory Reserve Merit Award Program (MAP) Reserve Performance Pay Reserve TANS Issue Teacher Lead Terminal Leave / Annual Leave Payoff Utilities Water Control District Worker's Compensation Sub-Total District Wide Contingency Fund Capital Maintenance Grand Total 5,013,313-2% 5,009,313 4,876,000-3% (137,313) - (0) 3,146, ,683, ,683, , ,864 - (316,876) , (34.0) ,542,369 6,341,055 13,074,013 5,531,644-12,817,423 10,828,934 13,966,601 1,149,178-6,771,546 6,689,561 6,400,000 (371,546) - 500,000 (335,925) 500, ,850 84,850 89,358 4,508-83,422 97,469 - (83,422) - 486, , ,921 (206,246) - 2,210,263 2,190,084 2,203,706 (6,557) - 11,101,705 13,131,116 11,101,700 (5) - 42,547,828 42,178,489 45,443,124 2,895, , , ,196 28, ,920,603-24% 90,608, ,090,764 74% ,170,160 (28.8) 44,369,164 13% - 44,369,164 0% ,105,002 39% 61,801, ,295,845 2% ,190,843 (32.0) 1,396,546,338-5% 1,292,901,730 16, ,450,494,334 4% 16, ,947, * 1 FTE = 8.0 hours/day or 7.5 hours/day for CTA employees. 4-15

98 Analysis of General Fund Appropriations Run-Rime: 08/26/2010 at 11:15 AM 1 FY 2007 FY 2008 FY 2009 Dept Expend. FTE* Expend. % Chg. FTE* Budget Expend. % Chg. FTE* GOVERNANCE: School Board , , , , Office of District Auditor ,162, ,117, ,274,556 1,191, Chief Counsel to the Board ,967, ,195, ,377,392 2,960, Sub-Total Board 4,890, ,178, ,550,885 4,990, Superintendent , , , , P.B.C. Education Foundation , , , , Sub-Total Governance 5,695, ,993,626 5% ,402,543 5,825,824-3% 50.8 ADMINISTRATION: Chief of Staff ,062 53, ACADEMICS: Chief Learning Officer , , , , Public Affairs , , , , Transformation ** Compliance & Special Projects , , , , Capacity Dev & Sch Ref Acct Sub-Total 1,637, ,807,772 10% ,900,755 1,803,205 0% 20.1 Safety & Learning Environment: Safety and Learning Environment ,904, ,658, ,640,907 3,045, Professional Development ,386, ,351, ,270,275 1,137, Student Intervention Services , , ,366,964 5,012, After School Programming , ,682, ,431,807 1,690, The Education Network Educational Technology ,033, ,211, ,325,978 1,186, Instructional Materials ,221, ,304, ,339,139 1,276, Sub-Total Safety & Learning Environment 7,012, ,200,615 31% ,375,072 13,348,942 45% Performance Accountability: Performance Accountability , , , , Educational Data Warehouse Assessment , ,238, ,380,969 1,169, Research and Evaluation , , ,007, , Sub-Total Performance Acct. 2,146, ,521,046 17% ,695,001 2,447,536-3% 24.5 Quality Assurance: Quality Assurance , , , , Department of Juvenile Justice Charter Schools , , , , Drop Out Prevention ,099, ,656, ,513,347 1,526, Sub-Total Quality Assurance 3,851, ,399,608 14% ,431,254 2,337,900-47% 27.0 * 1 FTE = 8.0 hours/day or 7.5 hours/day for CTA employees. 4-16

99 Analysis of General Fund Appropriations Run-Rime: 08/26/2010 at 11:15 AM 1 Dept GOVERNANCE: School Board 9000 Office of District Auditor 9104 Chief Counsel to the Board 9720 Sub-Total Board Proposed to Amended FY 2010 Proposed 2011 Increase/(Decrease) Budget % Chg. Expend. FTE* Budget % Chg. FTE* Budget FTE* 813, , , ,414-1,325,744 1,219, ,374, ,181-3,128,466 3,009, ,806, (322,287) - 5,267,343 5,020, ,004, (262,692) - Superintendent 9001 P.B.C. Education Foundation 9071 Sub-Total Governance 617, , , (7,498) - 281, , , (8,848) - 6,166,331-4% 5,864, ,887,294-5% 49.8 (279,037) - ADMINISTRATION: Chief of Staff , % 325, % - (366,074) (2.0) ACADEMICS: Chief Learning Officer 9016 Public Affairs 9080 Transformation ** 9030 Compliance & Special Projects 9057 Capacity Dev & Sch Ref Acct 9020 Sub-Total 554, , , (200,082) (2.0) 1,081,205 1,060, ,061, (19,348) (1.0) , , , (202,742) - - 3, ,893,616 0% 1,951, ,471,443-22% 19.5 (422,173) (3.0) Safety & Learning Environment: Safety and Learning Environment 9010 Professional Development 9264 Student Intervention Services 9018 After School Programming 9012 The Education Network 9037 Educational Technology 9228 Instructional Materials 9036 Sub-Total Safety & Learning Environment 2,782,463 2,460, ,088, , ,387,772 1,099, ,533, ,141 (1.0) 5,033,022 4,553, , (4,824,203) (54.9) 2,233,259 1,831, , (1,496,098) (9.4) 91, ,709, ,618, ,951,108 3,216, ,084, ,458-1,344,756 1,288, ,164, (180,461) (1.0) 16,823,528 9% 14,449, ,527,166-20% (3,296,363) (34.3) Performance Accountability: Performance Accountability 9045 Educational Data Warehouse 9055 Assessment 9053 Research and Evaluation 9054 Sub-Total Performance Acct. 306, , , (5,025) - 85,464 86, (85,464) (1.0) 3,057,284 2,594, ,571, (486,023) (2.0) 890, , , ,460-4,339,703 61% 3,838, ,769,650-13% 21.5 (570,053) (3.0) Quality Assurance: Quality Assurance 9072 Department of Juvenile Justice 9305 Charter Schools 9333 Drop Out Prevention 9304 Sub-Total Quality Assurance 496, , , (16,105) ,882, ,882, , , , ,863-1,109, , ,002, (107,084) (0.5) 1,998,964-18% 1,763, ,761,398 88% ,762, * 1 FTE = 8.0 hours/day or 7.5 hours/day for CTA employees. 4-17

100 Analysis of General Fund Appropriations Run-Rime: 08/26/2010 at 11:15 AM 1 FY 2007 FY 2008 FY 2009 Dept Expend. FTE* Expend. % Chg. FTE* Budget Expend. % Chg. FTE* Learning Support: Grants Adm & Sch Ref Acct , , , , School Improvement , , , , Community and Adult Education ,469, ,845, ,808,449 1,327, Migrant Choice Programs & School Choice ,170, ,293, ,484,476 1,437, Supplemental Educational Services ,061, ,850, ,302,864 1,168, Federal and State Programs ,637-6,946-46,831 33,876 - Sub-Total Learning Support 12,493, ,868,859-29% ,488,527 4,783,833-46% 47.5 Curriculum: Curriculum , , , Early Childhood Education , , , , Elementary Education ,665-1, K-12 Curriculum ,135, ,054, ,296,346 6,534, Elementary Curriculum , Secondary Curriculum ,130 17, Multicultural Education ,271, ,460, ,546,913 5,985, Exceptional Student Education ,410, ,508, ,467,032 3,653, Exceptional Student Ed OTS ,895, ,653, ,464,595 6,378, South ESE Area ,027, ,138, ,008,122 2,040, Central ESE Area ,157, ,181, ,965,115 1,934, West ESE Area ,836, ,045, ,044,283 1,980, North ESE Area ,357, ,443, ,252,263 2,246, Sub-Total Curriculum 24,855, ,147,848 25% ,220,882 31,704,055 2% Area Superintendents: South Area , , , , Central Area , , , , West Area , , , , North Area , , , , Sub-Total Area Superintendents 3,473, ,505,300 1% ,606,582 3,533,004 1% 36.0 Human Resources: Human Resources , , , , Recruitment and Retention ,195, ,243, ,904,643 1,889, Employee Relations , ,018, , , HR Customer Relations , ,410, ,936,766 1,891, Compensation & HR Planning , ,143, ,141,980 1,143, Sub-Total Human Resources 5,774, ,554,629 14% ,190,219 6,054,745-8% 82.0 Sub-Total Chief Academic Officer 61,244, ,005,676 11% ,908,291 66,013,220-3% * 1 FTE = 8.0 hours/day or 7.5 hours/day for CTA employees. 4-18

101 Analysis of General Fund Appropriations Run-Rime: 08/26/2010 at 11:15 AM 1 Dept Learning Support: Grants Adm & Sch Ref Acct 9084 School Improvement 9058 Community and Adult Education 9039 Migrant 9021 Choice Programs & School Choice 9044 Supplemental Educational Services 9011 Federal and State Programs 9031 Sub-Total Learning Support Proposed to Amended FY 2010 Proposed 2011 Increase/(Decrease) Budget % Chg. Expend. FTE* Budget % Chg. FTE* Budget FTE* 782, , , (220,478) (2.0) 607, , (607,002) (5.0) 1,956,346 1,443, , (979,208) (1.0) 13,047 4, (12,864) - 2,207,019 1,837, ,878, (328,237) (3.5) - 2, ,199 8, , , ,585,212 2% 4,563, ,680,967-34% 31.4 (1,904,245) (9.5) Curriculum: Curriculum 9048 Early Childhood Education 9033 Elementary Education 9029 K-12 Curriculum 9088 Elementary Curriculum 9051 Secondary Curriculum 9056 Multicultural Education 9083 Exceptional Student Education 9032 Exceptional Student Ed OTS 9034 South ESE Area Central ESE Area West ESE Area North ESE Area Sub-Total Curriculum Area Superintendents: South Area Central Area West Area North Area Sub-Total Area Superintendents 249, , , , , , , (295,589) ,216,779 2,992, ,432, (784,033) (1.3) 6,621,679 6,597, ,300, (1,321,678) (1.4) 3,530,924 3,106, ,155, (375,604) (4.0) 2,660,129 2,484, ,204, (455,945) (3.4) 7,826,963 6,610, ,940, (886,529) (1.3) 971, , , ,801-1,462,838 1,450, ,498, , ,498,494 1,504, ,519, ,283-1,466,313 1,393, ,320, (145,558) - 30,331,143-14% 27,926, ,178,982-14% (4,152,161) (8.9) 884, , , , , , , , , , , , , , , (50,051) - 3,559,148-1% 3,531, ,554,975 0% 37.0 (4,172) - Human Resources: Human Resources 9003 Recruitment and Retention 9267 Employee Relations 9263 HR Customer Relations 9266 Compensation & HR Planning 9268 Sub-Total Human Resources 284, , , , ,833,122 1,823, ,688, (144,524) (2.0) 598, , , ,467-2,100,881 2,124, ,001, (99,217) (2.0) 1,168,331 1,081, ,084, (83,366) (1.0) 5,985,689-3% 5,842, ,719,087-4% 77.0 (266,602) (4.0) Sub-Total Chief Academic Officer 70,517,003-3% 63,867, ,663,669-13% (8,853,334) (41.1) * 1 FTE = 8.0 hours/day or 7.5 hours/day for CTA employees. 4-19

102 Analysis of General Fund Appropriations Run-Rime: 08/26/2010 at 11:15 AM 1 FY 2007 FY 2008 FY 2009 OPERATIONS: Dept Expend. FTE* Expend. % Chg. FTE* Budget Expend. % Chg. FTE* Chief Operating Officer , , , , Diversity in Business Practice , , , , Labor Relations , , , , Legislative Liaison , , , ,880 - School Police (excludes school positions) ,090, ,428, ,920,560 7,743, Transportation ,780,854 1, ,794,877 1, ,072,942 43,787, School Food Service - Admin Café , , , , Risk & Benefits Management ,723, ,938, ,708,968 1,490, Purchasing ,454, ,618, ,770,071 2,500, ERP System , , Community Liaison , , ,069 - Sub-Total 61,013,846 1, ,548,753 11% 1, ,655,088 57,616,378-15% 1,068.3 Facilities Management Facilities Management ,077-39,764-44,349 34,057 - Environmental Control , , , , Building Department Planning Real Estate Project Controls Program Management Facilities Services ,458, ,511, ,668,175 4,264, Facilities Services - Grounds ,363,435-4,448,180-6,692,895 3,420,891 - Facilities Services - Fulton Holland , , , , Sub-Total Facilities 8,657, ,787,185 13% ,266,192 8,537,699-13% 93.0 Financial Management Chief Financial Officer , , , , Accounting ,262, ,945, ,912,261 3,804, Budget , , , , Treasury , , , , FTE Reporting , , , , Sub-Total Financial Management 4,930, ,514,679 32% ,698,745 6,435,362-1% 85.0 Information Technology Chief Information Officer , , , , Application Support / Quality Assurance ,506, , , , Infrastructure / Systems Support ,043, ,327, ,383,926 2,246, Printing Services , , , Technical Operations , , , , IT Governance , , , , Project Management Sub-Total Information Technology 5,214, ,773,824-8% ,003,618 5,020,477 5% 55.8 Sub-Total Chief Operating Officer 79,816,572 1, ,624,441 11% 1, ,623,643 77,609,916-12% 1,302.1 * 1 FTE = 8.0 hours/day or 7.5 hours/day for CTA employees. 4-20

103 Analysis of General Fund Appropriations Run-Rime: 08/26/2010 at 11:15 AM 1 OPERATIONS: Dept Chief Operating Officer 9013 Diversity in Business Practice 9008 Labor Relations 9019 Legislative Liaison 9022 School Police (excludes school positions) 9004 Transportation 9320 School Food Service - Admin Café 9154 Risk & Benefits Management 9007 Purchasing 9220 ERP System 9028 Community Liaison 9017 Sub-Total Proposed to Amended FY 2010 Proposed 2011 Increase/(Decrease) Budget % Chg. Expend. FTE* Budget % Chg. FTE* Budget FTE* 346, , , (31,746) - 471, , , (71,525) (1.0) 441, , , (117,356) (1.0) 286, , ,166 - (36,053) - 3,797,157 3,027, ,660, , ,800,662 38,777, ,544, (1,255,935) , , , , , , , (16,377) (0.8) 2,210,022 2,180, ,365, , ,611,056-14% 46,597, ,111,137-1% (499,919) 14.8 Facilities Management Facilities Management 9043 Environmental Control 9095 Building Department 9241 Planning 9242 Real Estate 9243 Project Controls 9244 Program Management 9245 Facilities Services 9450 Facilities Services - Grounds 9456 Facilities Services - Fulton Holland 9458 Sub-Total Facilities 21,489 21, (21,489) - 831, , , ,651 (1.0) ,663,388 1,507, ,508, (155,373) (1.0) 451, , , (22,896) ,763,144 3,307, ,836, (926,901) (19.5) 6,330,564 3,001,499-6,224,295 - (106,269) - 487, , , (42,639) (1.5) 13,549,743 10% 9,572, ,284,827-9% 64.5 (1,264,916) (23.0) Financial Management Chief Financial Officer 9025 Accounting 9100 Budget 9090 Treasury 9236 FTE Reporting 9026 Sub-Total Financial Management 230, , , (1,229) - 4,474,297 4,390, ,216, (258,201) (5.0) 956, , , (97,894) (1.0) 1,447, , , (695,354) - 639, , , , ,747,239 16% 6,911, ,739,046-13% 89.0 (1,008,194) (5.0) Information Technology Chief Information Officer 9230 Application Support / Quality Assurance 9229 Infrastructure / Systems Support 9049 Printing Services 9081 Technical Operations 9231 IT Governance 9232 Project Management 9234 Sub-Total Information Technology Sub-Total Chief Operating Officer 257, , , (10,366) - 2,836,796 2,819, ,043, ,255-1,059, , ,138, ,907 (1.0) 4, , (3,370) 4.0 (8,016) - 2,122,348 2,021, ,749, (373,039) - 219, , , (7,177) - 384, , , (12,299) - 6,884,614 38% 6,854, ,758,878-2% 72.8 (125,736) (1.0) 75,792,652-5% 69,936,102 1, ,893,888-4% 1,064.8 (2,898,765) (14.2) * 1 FTE = 8.0 hours/day or 7.5 hours/day for CTA employees. 4-21

104 Analysis of General Fund Appropriations Current FY2011 School Budgets SCHOOL BUDGET ITEMIZATION: REGULAR BUDGET BY FUNCTION AREA Function Area Elementary Middle High Adult Alt. Ed ESE Ctr. Total 5101 Basic K-3 171,312, ,312, Basic ,496, ,503,754 1,476,590 2,034, , ,912, Basic , ,405,001 3,072, ,883, Jr. ROTC 1,562,452 1,562, Fine Arts-Art 7,557,658 7,557, Fine Arts-Music 7,196,842 7,196, Fine Arts-PE 8,984,934 8,984, ESOL 13,589,418 4,622,838 6,934,240 77,038 55,695 25,279, General K-12 Classroom 2,283 1,300 83,645 87, Substitutes 3,698,871 1,486,583 1,833, ,232 62,682 7,160, Substitute for ESE Para's 183,793 59,255 54,034 62, , Year Round Supplements 2,410,109 2,459,985 2,058,486 6,578 54,909 48,672 7,038, Speech/Language 14,013,223 2,414,178 1,620, ,914 18,754, Hearing Impaired 466, , ,070 66, , Vision 66,690 66, Gifted 17,249,739 3,678,950 20,928, Low Incidence 5,878,340 2,240,238 1,636, ,523 10,599, Varying Exceptionalities 19,115,935 12,522,430 11,959, ,552 1,451,305 45,789, Emotional/Behavior Disabled 2,355,884 2,398,828 1,471, ,186 6,518, Intellectually Disabled 2,546,858 1,533,527 2,747,287 1,978,138 8,805, Pre-K ESE 8,985, ,608,890 10,594, Vocational ,216, , ,695 15,851, Adult Education 7,754,326 7,754, Seasonal Supplements 997,575 1,538,947 5,020,675 55,478 5,795 7,618, Attendance and Social Work 170,704 72, , Guidance Counselors 7,929,529 4,950,979 8,150, , , ,068 21,969, ESOL Guidance Counselors 2,556, ,272 1,241,578 4,382, Health Services 502,500 73,034 71, , Psychological Services 159, , Parental Involvement 31,560 31, Other Pupil Personnel Services 225, , Instructional Media Services 8,403,537 2,440,125 2,284,846 75,402 13,203, ESE Contacts 1,934,837 1,100, ,860 66,690 67,690 3,941, ESOL Contacts 2,673, , ,240 4,077, Crisis Intervention 460, , Instructional Staff Training 976, , ,777 12,591 84,598 1,964, School Administration 39,556,684 20,918,505 17,548,347 4,286,544 2,287, ,261 85,418, Student Transportation 1,650 1, Field/Activity Trips 69,000 1,108 70, Operation Of Plant 10,609,248 4,588,884 7,797, , , ,311 23,920, Security 6,016 33, ,000 94, ,810 1, , Community Services 103, ,544 SUB-TOTAL 436,263, ,408, ,937,248 12,632,620 10,676,626 9,863, ,782,

105 Analysis of General Fund Appropriations Current FY2011 School Budgets SCHOOL BUDGET ITEMIZATION CONTINUED: RESTRICTED CATEGORICALS Program Area Elementary Middle High Adult Alt. Ed ESE Ctr. Total 3006 Extended Day 341, , Instructional Tech Sprt Asst 70,410 70, School Year Voluntary Pre-K 3,109,412 3,109, Summer Voluntary Pre-K 111, , Dual Language Teachers 7,887, , ,680 8,555, In School Suspension 17, , ,880 89, , SAI Categorical 7,270,864 7,270, Pass Program 17, ,000 32,000 31,500 1,079, SES Provider 11,499 11, Magnet/Choice Program 4,400,746 2,641,606 5,932,530 12,974, Montessori 47,492 47, Educational Options Program 254, , Gender Equity 5,000 66, ,000 10, , School Improvement 7,285 8,532 20,841 36, Before/After School Program 17,000 17, K-12 Reading Initiative CRRP 70,228 2,247,296 1,615,244 3,932, Advanced Placement/IB 5,881,614 5,881, Vocational-Middle Sch 68,870 6,161,863 6,230, Above Formula 464, ,726 1,079,722 1,786, Trade Offs 4,114,722 2,689,726 11,428, ,885 18,366, Juvenile Justice (DJJ) 2,192,532 2,192, Teen Parent Program 15,435 15, Braman Lease 24,192 24, Alternative to Suspension Prog 1,037,064 1,037, Tower Rental 3,100 2,191 5, Safe Schools 18,030 1,555,704 49,470 1,440,947 3,064, Dreyfoos Ed Foundation 123, , PTA_PTO 9,046 9, ESE OTS 176, , Americans W/Disabilities Act 237,451 54, , , Accommodations 26,653 26, Sabbatical Leave 107,928 31,262 41, , Union President 66,690 66, Copier Service 2,396,337 1,060,559 1,344,591 16,500 34,499 11,120 4,863,606 SUB-TOTAL 30,701,812 18,920,291 28,389, ,570 5,079, ,688 83,549,935 TOTAL BUDGET 466,965, ,329, ,326,872 12,903,191 15,756,575 10,051, ,332,525 Virtual Schools 2,706,350 Charter Schools 60,440,254 School Recognition & Adults w/disabilities 9,184,746 Adult Education Overhead 158,099 Fee Based - Community Schools 980,736 Fee Based -School Age Child Care (SACC) 19,491,001 92,961,186 TOTAL GENERAL FUND SCHOOL BUDGETS (including Fee Based programs) $1,040,293,

106 LEGISLATIVE MANDATE CLASS SIZE REDUCTION AMENDMENT Summary: In November of 2002, Section 1 of Article IX was amended to implement class size reduction legislation. School Districts must reduce in each of three grade groupings by at least two students per-year as follows; , , at the district level, , , and at the school level and at the classroom level. These averages apply to only core class subject areas. Excerpts from Amended Article IX, Section 1: To assure that children attending public schools obtain a high quality education, the legislature shall make adequate provision to ensure that, by the beginning of the 2010 school year, there are a sufficient number of classrooms so that: 1. The maximum number of students who are assigned to each teacher for pre-kindergarten through grade 3 does not exceed 18 students. 2. The maximum number of students who are assigned to each teacher for grades 4 through 8 does not exceed 22 students. 3. The maximum number of students who are assigned to each teacher for grades 9 through 12 does not exceed 25 students. 4. The class size requirements do not apply to extracurricular classes. The Department of Education collected information from the School Districts to arrive at a baseline for district class size averages in core courses. The Palm Beach County School District 2003 baseline district class size averages in grades PK-3, 4-8 and 9-12 are 25.51, and 23.82, respectively. For FY 2004, Palm Beach County focused class size reduction efforts on the highest needs schools through the District s Accelerated Academic Achievement (AAA) Plan. Since FY 2005, the District has adjusted its allocation formulas in order to evenly distribute class size reduction teachers to all schools. Financial Impact: The FY 2011 financial impact of this legislation is estimated at $201,569, This estimate is based on the state categorical allocation. Estimated Financial Impact: $201,569,

107 FLORIDA EDUCATION FINANCE PROGRAM (FEFP) STATE FUNDING FORMULA FLOWCHART The amount of State and Local FEFP dollars for each school district is determined as follows: District Student Program Weighted Base 3 Cost BASE FTE 1 x Cost = FTE x Student x Differential = FUNDING + Factors 2 Students Allocation Factor Palm Beach Palm Bch Avg. Palm Beach State Palm Beach Palm Beach 173, , $3, $707,575,397 Supplemental ESE 4 Safe Reading Declining DJJ Academic + Guaranteed + Schools + Instruction + Enrollment + Supplemental + Instruction Allocation Allocation Allocation Supplement Funding Palm Beach Palm Beach Palm Beach Palm Beach Palm Beach Palm Beach $33,651,291 $65,435,583 $4,471,868 $6,600,576 $0 $338,806 State Fiscal Merit STATE & Earmarks + Stabilization + Award = LOCAL Funds Allocation FEFP Palm Beach Palm Beach Palm Beach Palm Beach $41,878,435 $59,704,413 $89,358 $919,745,726 The State then determines the portion of the FEFP to be funded by state revenues and the portion to be funded by local real estate tax revenues. Following the apportionment, the State adds additional funds to their contribution. State Net & REQUIRED State Local - LOCAL = FEFP FEFP EFFORT 6 Dollars Dollars Palm Beach Palm Beach Palm Beach $919,745,726 $724,525,367 $195,220,359 Net Lottery/ Categorical TOTAL State + School + Program = STATE FEFP Recognition Funds ALLOCATION Allocation Funds Palm Beach Palm Beach Palm Beach Palm Beach $195,220,359 $9,653,568 $201,569,744 $406,443,671 1 FTE: Student full-time equivalent, by program, as defined by the State. 2 FY 2011 Program Cost Factors: Basic Education Grades K Exceptional Students Level IV Basic Education Grades Exceptional Students Level V Basic Education Grades Vocational Grades English for Speakers of Other Languages Base Student Allocation is set by the state legislature each year. 4 ESE: Exceptional Student Education (varying exceptionalities, gifted, speech, hearing). 5 DCD: District Cost Differential provides equalization of cost of living differences between districts. 6 Required Local Effort is the amount of real estate tax revenue the legislature mandates that each district assess for education. Each district's RLE, as a percentage of total FEFP, is different. 4-25

108 GENERAL FUND BUDGET THREE YEAR HISTORY ADOPTED/AMENDED/ACTUAL REVENUE FY 2008 FY 2009 Adopted Amended Actual Adopted Amended Actual Total Federal Revenue $4,363,000 $ 2,224,728 $ 2,224,728 $ 2,963,000 $ 6,406,783 $6,406,783 Total State Revenue 425,442, ,743, ,743, ,630, ,884, ,884,224 Total Local Revenue 922,674, ,417, ,417, ,657, ,598, ,598,025 Total Incoming Transfers 49,000,000 63,452,898 63,452,897 61,249,929 61,325,216 61,325,216 Other Financing Sources 0 4,067,925 4,067, ,802,742 2,802,742 Beginning Fund Balance 86,200, ,575, ,575, ,719, ,719, ,719,670 TOTAL REVENUE, TRANSFERS, & FUND BALANCE $1,487,679,819 $1,525,481,495 $1,525,481,494 $1,474,219,918 $1,468,736,661 $1,468,736,660 EXPENDITURES State FY 2008 FY 2009 Function Adopted Amended Actual Adopted Amended Actual Instructional Services 5000 $925,550,807 $ 929,625,139 $ 880,382,502 $899,077,367 $ 897,637,043 $879,909,609 Support Services: Pupil Personnel ,853,751 42,670,146 42,627,746 44,129,462 43,628,762 41,612,018 Media Services ,137,126 24,091,442 19,043,189 23,677,286 23,372,219 18,695,327 Curr. Development ,972,846 32,431,643 31,805,431 31,971,877 32,602,946 32,169,121 Instr. Staff Training ,400,957 17,460,697 14,283,930 16,150,554 16,510,884 14,002,550 Instr. Rel. Technology ,068,933 5,066,217 4,874,310 4,952,958 4,782,178 4,557,557 Board of Education ,883,150 8,136,265 8,130,014 6,804,435 7,037,211 5,169,247 General Admin ,851,705 8,164,935 8,147,583 7,549,583 7,558,002 7,274,960 School Admin ,990, ,183,166 97,168,283 94,567,079 97,664,855 96,097,062 Fac. Acq. & Constr , ,082 2,410, ,350 1,460,693 1,379,333 Fiscal Services ,954,488 6,226,943 5,874,534 6,254,217 6,212,899 5,828,120 Food Service Central Services ,929,174 15,128,390 14,794,350 15,675,737 14,914,937 14,068,826 Pupil Transportation ,853,653 51,595,945 51,397,648 51,088,671 44,691,840 44,210,090 Operations of Plant ,448, ,829, ,083, ,592, ,130, ,427,541 Maintenance of Plant ,894,844 51,218,340 50,422,211 50,012,199 48,938,354 46,190,284 Admin Technology Serv ,754,851 5,730,321 5,513,478 5,525,603 5,538,296 5,450,668 Community Services ,042,965 35,023,310 30,240,081 22,792,789 35,262,423 29,148,357 Debt Service ,150,500 3,734,579 3,562,878 3,391,177 3,391,177 2,132,792 Total Instructional & Support Services $1,448,279,819 $1,475,933,495 $1,404,761,824 $1,424,671,918 $1,429,334,761 $1,376,323,461 Total Transfers ,899 1,899 Reserves & Ending Fund Balance 39,400,000 49,548, ,719,670 49,548,000 39,400,000 92,411,299 TOTAL EXPENDITURES, TRANSFERS & FUND BALANCE $1,487,679,819 $1,525,481,495 $1,525,481,494 $1,474,219,918 $1,468,736,661 $1,468,736,

109 GENERAL FUND BUDGET THREE YEAR HISTORY ADOPTED/AMENDED/ACTUAL REVENUE Total Federal Revenue Total State Revenue Total Local Revenue Total Incoming Transfers Other Financing Sources Beginning Fund Balance TOTAL REVENUE, TRANSFERS, & FUND BALANCE FY 2011 FY 2010 Estimated Adopted Amended Actual Revenue $4,399,000 $ 5,935,374 $5,935,374 $4,706, ,100, ,919, ,919, ,721, ,658, ,515, ,515, ,300,867 79,357,064 79,692,945 79,692,945 81,125, ,072,584 4,072, ,411,299 92,411,299 92,411, ,640,873 $1,376,925,796 $1,396,546,338 $1,396,546,338 $1,450,494,334 EXPENDITURES State Function Instructional Services 5000 Support Services: Pupil Personnel 6100 Media Services 6200 Curr. Development 6300 Instr. Staff Training 6400 Instr. Rel. Technology 6500 Board of Education 7100 General Admin School Admin Fac. Acq. & Constr Fiscal Services 7500 Food Service 7600 Central Services 7700 Pupil Transportation 7800 Operations of Plant 7900 Maintenance of Plant 8100 Admin Technology Serv 8200 Community Services 9100 Debt Service 9200 Total Instructional & Support Services Total Transfers 9700 Reserves & Ending Fund Balance TOTAL EXPENDITURES, TRANSFERS & FUND BALANCE FY 2011 FY 2010 Tentative Adopted Amended Actual Appropriations $854,471,910 $ 863,582,209 $839,310,935 $920,526,511 32,868,617 34,045,198 33,397,576 34,559,550 21,513,461 17,238,306 16,109,452 17,560,680 25,552,405 24,857,818 23,996,550 22,366,740 13,618,133 15,201,700 12,513,310 12,762,936 3,228,583 3,275,817 2,895,298 3,557,652 7,989,672 7,113,669 5,578,853 6,483,126 7,288,775 7,647,130 7,363,524 6,232,654 93,143,566 95,050,411 93,237,725 96,212, ,636 1,530,465 2,536, ,721 6,805,079 7,012,054 6,192,292 5,730, ,345 15,294,993 16,376,427 15,363,023 20,437,895 36,593,980 39,441,714 39,332,418 37,832,707 98,993, ,597,407 97,614, ,778,006 66,518,856 68,105,002 60,702,315 69,295,845 9,917,911 10,001,034 9,533,172 10,493,750 35,700,424 36,614,646 26,741,817 36,141,128 2,132, , , ,921 $1,332,556,632 $1,352,177,174 $1,292,905,466 $1,406,125, ,369,164 44,369, ,640,873 44,369,164 $1,376,925,796 $1,396,546,338 $1,396,546,338 $1,450,494,

110 4-28

111 CAPITAL PROJECTS FUNDS Capital Projects Funds are used to account for financial resources that the district uses for acquisition or construction of major capital facilities and improvements to existing facilities. Land acquisition, equipment purchases, buses, maintenance and capital debt service are also accomplished with these funds. Revenue and other financing sources for these funds include State allocations, Capital Improvement Ad Valorem Tax Levies, bonds and loans. A one-half cent local sales tax was added as a revenue source, beginning January Palm Beach County voters approved the sales tax in November 2004, for the purpose of constructing both new and replacement schools as presented to the voters. The sales tax was approved for six years and is expected to generate at least $644 million in revenue over this period. Expenditures from all capital sources are listed in the District s approved Five Year Capital Plan. Each fund group is accounted for separately as required by State Statute. The District s Five Year Capital Work plan is updated annually as part of the annual budget adoption process. A summary of the plan is included in this section. The Capital Project appropriations are developed on an ongoing basis, and are amended as needed throughout the year. The plan represents the joint effort of the School District, city and county planners, and advisory committees to provide and maintain the educational facilities and equipment needed to educate Palm Beach County s students. Estimated Revenues Estimated revenues are calculated based on official state notifications, certified county tax assessments and historical experience. Estimated revenues are updated as new data becomes available throughout the budget process. Capital Improvement Ad Valorem Levy Revenues from capital millage comprise 54% of the FY2011 budgeted revenue and are therefore a critical component of capital funding. For FY 2010 and FY 2011, the certified tax roll fell 11.17% and 9.87% respectively, from the previous year. In FY 2010, the Legislature also lowered the allowable capital millage rates from 1.75 mills to 1.50 mills. To offset this reduction, they provided school districts the opportunity to levy 0.25 mills for critical needs, capital or operating, and an additional 0.25 mills at the discretion of the district, to be used for operating and/or capital. For FY 2011, the district is levying 0.25 mills for critical operating needs, and 0.07 mills for discretionary capital outlay. In total, capital millage levied for FY 2011 is mills and will generate $203 million in revenue. This amount is $59 million less than FY 2010 collections. Local Sales Tax Sales tax revenues for FY 2011 are estimated at $60.3 million. This compares to $99.3 million collected in FY Additionally, local sales tax revenues are down as a result of the current economic contraction. Unemployment in Florida is currently one of the highest rates in the country. 5-1

112 CAPITAL PROJECTS FUNDS State Sources The state revenue sources of Public Education Capital Outlay (PECO), and Capital Outlay and Debt Service (CO&DS) are budgeted at the official notification amounts. Those amounts for FY 2011 are $5.4 million and $1.0 million, respectively. Florida Statute Section Loans and Certificates of Participation (COP) amounts are determined by district administration and reviewed and approved by the Board. During FY 2010, the School Board approved a resolution allowing the District to participate in the 2010 Capital Outlay Bond Issue sale that will be conducted by the State of Florida in October The revenues associated with the sale, $9.7 million, are included in the FY 2011 budget. Local Sources The District plans to issue $67.6 million of Qualified School construction Bonds. The bonding program is authorized by the American Recovery and Reinvestment Act. Through the program, the District will receive a federal subsidy which will cover most of the interest cost associated with the debt. Interest income, impact fees, and miscellaneous income are based on expected cash flow, projected interest rates and historical experience. Appropriations Debt service repayments represent the largest portion of the capital projects budget. expense for debt repayment in FY 2011 is $260 million. Total Construction projects, including new schools, modernizations and additions, comprise another large portion of the capital budget. The overall capital outlay plan is prepared from the five year Educational Plant Survey which recommends remodeling and new construction projects. By using student projections, new schools or additions are planned to match new construction with the actual areas of capacity shortfall. Using this data, a Five-Year Capital Work Plan is being presented to the Board on September 7, 2010 (see summary on pages 5-6 to 5-17). This document is the starting point for the Capital Projects Funds budget. Another portion of the facilities project is devoted to the modernization of existing schools. As new schools are being built in growing communities to address space needs, funds must be dedicated to revitalize and preserve existing schools in older communities. Quality schools are key elements to the viability and livability of older neighborhoods. These schools and their communities cannot wait until space needs are addressed throughout the County. The Five-Year Work Plan balances the building of new space with the modernization of existing schools. Impact on Operating Budget The relationship of the capital budget to the operating budget is a critical consideration in the overall fiscal picture. The capital budget affects the operating budget most notably when new schools are opened. Typically new schools create the following additional operating costs: 5-2

113 Impact on Operating Budget (continued) CAPITAL PROJECTS FUNDS Elementary $ 1,313,742 Middle $ 1,806,816 High $ 2,967,907 These operating expenditures include increased utility and maintenance costs and school support administrative salaries such as the principal. The cost does not include teachers and staff allocated based on enrollment. Some of this operating budget impact is offset by a reduction in relocatable use. Each year the operating budget is projected to include increases for anticipated new school openings. Initial start-up supplies, textbooks, library books, furniture and equipment are provided by the Capital Projects Funds Budget. Thereafter, funding for school staffing and supplies is generated by student enrollment through the Florida Education Finance Program (FEFP). In FY 2011, the District is opening one new elementary school. Capital Transfer to General Fund By state law, school districts are allowed to transfer capital funding to general fund to cover the following expenditures: Repair and maintenance: o Facilities o Equipment o Enterprise software Property and flood insurance Additionally, reporting requirements dictate that Charter School Capital Outlay revenues be recorded in the Capital Projects Fund and be disbursed through General Fund. The revenues are therefore included in the capital transfer to operating. The total capital transfer to general fund budgeted for FY 2011 is $81.1million. 5-3

114 CAPITAL PROJECTS BUDGET TENTATIVE REVENUE AND APPROPRIATIONS ($000,000) The Capital Budget accounts for the financial resources that the district uses for acquisition or construction of major capital facilities and improvements to existing facilities. Land acquisition, equipment purchases, buses, maintenance and capital debt service are also accomplished with these funds. REVENUE Tentative Revenue Tentative Budget % of Total CO & DS Distributed $ % PECO % Charter School Capital Outlay % Millage % Fund Balance CO & DS Distributed PECO Charter School Capital Outlay Millage Local Sales Tax % Interest % Impact Fees % Sale of Bonds % Interfund Transfers % Fund Balance % TOTAL REVENUE $ % Local Sales Tax Interest Fund Balance Sale of Bonds Impact Fees APPROPRIATIONS Tentative Appropriations Tentative % of Budget Total Buildings & Fixed Equip. $ % Furniture, Fixtures, & Equip % Transfers Out Remodeling & Renovations % Land % Motor Vehicles % Improvements % Computer Software % Other % Transfers Out % TOTAL BUDGET $ % Other Computer Software Improvements Motor Vehicles Land Remodeling & Renovations Furniture, Fixtures, & Equipment Buildings & Fixed Equip. 5-4

115 CAPITAL PROJECTS FUNDS FIVE YEAR HISTORY REVENUE Estimated Actual Actual Actual Actual Revenue Total Federal Through State $2,149,356 $370,890 Total State Revenue 1,047,570 82,356,566 14,485,798 7,364,433 9,865,667 Total Local Revenue 487,854, ,394, ,464, ,499, ,624,613 Other Financing Sources 404,113, ,242,534 9,805, ,119 77,366,000 Interfund Transfers 23,242,988 Beginning Fund Balance 438,078, ,376, ,435, ,377, ,968,902 TOTAL REVENUE & FUND BALANCE $1,331,094,491 $1,372,370,042 $1,027,340,420 $794,407,296 $720,068,170 EXPENDITURES Account Tentative Number Actual Actual Actual Actual Appropriations (Function 7400) Library Books (New Libraries) 610 $409,822 $210,949 $302,620 $260,055 $233,063 Audio Visual Materials 620 1,118,143 1,251, ,221 38,037 16,527 Buildings and Fixed Equipment ,004, ,072, ,276, ,913, ,965,175 Furniture, Fixtures, and Equip ,043,805 36,777,099 35,154,476 26,056,515 24,671,446 Motor Vehicles (Including Buses) ,259,006 3,498,264 14,258,710 6,173,895 4,167,594 Land ,114,945 33,123,065 9,250,382 2,233,757 4,169,309 Improvements Other Than Bldgs 670 6,854,118 4,732,881 11,026,616 7,371,894 8,854,612 Remodeling and Renovations ,564,081 58,648,064 65,687,202 29,218,065 37,933,943 Computer Software ,095,114 9,544,791 6,446,002 2,702,584 1,346,870 Redemption of Principal ,000,145 Interest 720 8,984,962 6,783,186 2,486, ,253 3,255 Dues & fees 730 4,108,818 2,037, ,189 94, ,852 Miscellaneous Expense Total Expenditures $524,557,587 $578,679,681 $396,860,775 $223,743,478 $469,699,790 Transfers Out: (Function 9700) To General Fund 910 $43,620,950 $60,724,858 $61,325,216 $79,692,945 $81,125,392 To Debt Service Funds ,539, ,206, ,777, ,001, ,000,000 Interfund Transfers 23,242,988 Total Transfers Out $164,160,876 $205,931,505 $216,102,482 $228,694,915 $250,368,380 Ongoing Projects - Fund Balance 642,376, ,758, ,377, ,968,902 TOTAL EXPENDITURES, TRANSFERS & FUND BALANCE $1,331,094,491 $1,372,370,042 $1,027,340,420 $794,407,296 $720,068,

116 Estimated Revenue Summary of Estimated Revenues for Fiscal Years Total Prior Year Revenue Plan Years State Sources Charter School Capital Outlay 20,817,124 3,524,389 17,292,735 3,458,547 CO & DS 6,690,535 1,871,640 4,818, ,779 COBI Bonds 9,700,000 9,700,000 9,700,000 PECO Bonds - Const. 6,832, ,832,609 0 PECO Bonds - Maintenance 35,786,563 1,963,985 33,822,578 5,443,341 Subtotal State Sources $79,826,831 $7,360,014 $72,466,817 $19,565,667 Local Sources Special Millage (1.5 mil) 1,196,501, ,964, ,536, ,965,385 Special Millage Discretionary I (FY 11:.07 mil, FY12:.09 mil, FY13:.02 mil) 36,598,956 13,913,658 22,685,298 9,051,718 Special Millage Discretionary II (.25 mil) 35,494,027 35,494,027 0 Carryover 140,016, ,016,549 74,873,484 Impact Fees 16,435,860 2,739,310 13,696,550 2,739,310 Interest Income 12,500,000 2,500,000 10,000,000 1,500,000 Revenue Prior to FY ,448, ,448,606 0 Subtotal Local Sources $2,287,995,006 $1,118,059,761 $1,169,935,245 $282,129,897 Other Revenue Sources Qualified School Construction Bond Proceeds 67,666,000 67,666,000 67,666,000 RAN Proceeds 55,826,022 55,826,022 0 Referendum 151,123,000 90,776,000 60,347,000 60,347,000 Subtotal Other Revenue Sources 274,615, ,602, ,013, ,013,000 FY 2011 TOTAL REVENUES $2,642,436,859 $1,272,021,797 $1,370,415,062 $429,708,

117 Summary of Estimated Revenues for Fiscal Years Estimated Revenue State Sources Charter School Capital Outlay CO & DS COBI Bonds PECO Bonds - Const. PECO Bonds - Maintenance Subtotal State Sources Local Sources Special Millage (1.5 mil) Special Millage Discretionary I (FY 11:.07 mil, FY12:.09 mil, FY13:.02 mil) Special Millage Discretionary II (.25 mil) Carryover Impact Fees Interest Income Revenue Prior to FY 11 Subtotal Local Sources Other Revenue Sources Qualified School Construction Bond Proceeds RAN Proceeds Referendum Subtotal Other Revenue Sources TOTAL REVENUES FY 2012 FY 2013 FY 2014 FY ,458,547 3,458,547 3,458,547 3,458, , , , , ,105 4,120,537 2,566,967 3,120,454 7,607,626 8,372,047 9,279,110 $7,542,780 $12,175,057 $16,914,910 $16,268, ,267, ,316, ,648, ,339,460 11,056,027 2,577, ,000,000 23,000,000 15,143, ,739,310 2,739,310 2,739,310 2,739,310 1,750,000 2,000,000 2,250,000 2,500,000 $226,812,452 $223,633,337 $221,780,789 $215,578, $234,355,232 $235,808,394 $238,695,699 $231,847,

118 Summary of the Capital Improvement Program for Fiscal Years Prior to 2011 Plan Years Total Construction New Schools Hope-Centennial Elementary (06-D) 30,999,465 30,999,465 0 Pahokee Area Middle (03-MM) 37,296,466 37,296,466 0 Everglades Elementary (03-W) 27,378,116 27,378,116 0 Subtotal New Schools $95,674,047 $95,674,047 $0 $0 Modernizations / Replacements CO Taylor Elementary Modernization 40,722,493 40,722,493 0 Future School Modernizations 375, ,000 0 Galaxy Elementary Modernization 27,101,545 3,181,987 23,919,558 23,919,558 Glades Area Elementary Modernization (Gladeview Elem or Rosenwald Elem) 31,607, ,607,957 31,607,957 Gove Elementary Modernization 36,811,365 3,431,987 33,379,378 33,379,378 Northboro Elementary Modernization 33,409,133 33,409,133 0 Palm Beach Gardens High Modernization 105,522, ,522,848 0 Plumosa K-5 Elementary Modernization 30,794,290 30,794,290 0 Royal Palm School Modernization 42,092,283 42,092,283 0 Suncoast High School Modernization 91,541,495 91,541,495 0 West Area Education Complex Modernization 1,914,043 1,914,043 0 Subtotal Modernizations / Replacements $441,892,452 $352,985,559 $88,906,893 $88,906,893 Additions and Remodeling Banyan Creek Elementary Core Addition 5,304, ,810 4,981,155 4,981,155 Belle Glade Elementary Addition Pre-K 7,827,638 7,827,638 0 Boca Raton High Swimming Pool 3,311,548 3,311,548 0 Boynton Beach High Academy 10,630,590 10,630,590 0 Canal Point Elementary Brick Replacement 50,000 50,000 0 Carver Middle Core Addition 300, ,000 0 Classroom Technology Projects 9,000,000 9,000,000 0 Covered Walkways 16,000,000 5,300,000 10,700,000 10,700,000 Crestwood Middle Classroom & Core Addition 14,047,942 14,047,942 0 Fulton Holland Window Replacement Project 7,768,357 7,768,357 0 H.L. Johnson Elementary Addition 16,286,348 16,286,348 0 JF Kennedy Middle Athletic Fields 2,310,000 2,310,000 0 Jupiter Middle Classroom Addition 2,660,390 2,660,390 0 Jupiter Middle School Renovation 1,790,000 1,500, , ,000 FY

119 Summary of the Capital Improvement Program for Fiscal Years Construction New Schools Hope-Centennial Elementary (06-D) Pahokee Area Middle (03-MM) Everglades Elementary (03-W) Subtotal New Schools Modernizations / Replacements CO Taylor Elementary Modernization Future School Modernizations Galaxy Elementary Modernization Glades Area Elementary Modernization (Gladeview Elem or Rosenwald Elem) Gove Elementary Modernization Northboro Elementary Modernization Palm Beach Gardens High Modernization Plumosa K-5 Elementary Modernization Royal Palm School Modernization Suncoast High School Modernization West Area Education Complex Modernization Subtotal Modernizations / Replacements Additions and Remodeling Banyan Creek Elementary Core Addition Belle Glade Elementary Addition Pre-K Boca Raton High Swimming Pool Boynton Beach High Academy Canal Point Elementary Brick Replacement Carver Middle Core Addition Classroom Technology Projects Covered Walkways Crestwood Middle Classroom & Core Addition Fulton Holland Window Replacement Project H.L. Johnson Elementary Addition JF Kennedy Middle Athletic Fields Jupiter Middle Classroom Addition Jupiter Middle School Renovation FY 2012 FY 2013 FY 2014 FY 2015 $0 $0 $0 $0 $0 $0 $0 $0 5-9

120 Summary of the Capital Improvement Program for Fiscal Years Prior to 2011 Plan Years Total Additions and Remodeling (continued) Lake Worth Middle Core Addition 1,500,000 1,500,000 0 Manatee Elementary Addition 15,809,357 15,809,357 0 Pahokee Elementary Addition 1,452,683 1,452,683 0 Pahokee High Remodeling 4,817, ,817,988 4,817,988 Pahokee High Stadium 13,223,423 13,223,423 0 Palm Beach Lakes High Addition & Academy 14,521,190 14,521,190 0 Relocatables and Modulars Purchase 4,500,000 3,500,000 1,000,000 Seminole Trails Elementary Addition 13,964,012 13,964,012 0 Village Academy Buildout 1,700,000 1,700,000 0 Wellington Elementary Addition 22,205,230 22,205,230 0 Wellington High Veterinarian Academy 2,907,203 2,907,203 0 Whispering Pines Elementary Addition 4,518,105 4,518,105 0 Whispering Pines Classroom and Core Addition 8,409,936 2,455,849 5,954,087 5,954,087 Subtotal Additions $206,816,905 $179,073,675 $27,743,230 $26,743,230 Site Acquisition Site Acquisition 5,000,000 5,000,000 0 Subtotal Site Acquisition $5,000,000 $5,000,000 $0 $0 Debt Service Capital Contingency 62,134,449 36,800,202 25,334,247 4,459,039 COP Lease Payments 884,000, ,000, ,000, ,000,000 Commercial Paper Payments 250,000, ,000,000 0 Repayment of RAN 129,546,777 72,746,444 56,800,333 56,800,333 Subtotal Debt Service $1,325,681,226 $511,546,646 $814,134,580 $209,259,372 Total Construction $2,075,064,630 $1,144,279,927 $930,784,703 $324,909,495 FY

121 Summary of the Capital Improvement Program for Fiscal Years Additions and Remodeling (continued) Lake Worth Middle Core Addition Manatee Elementary Addition Pahokee Elementary Addition Pahokee High Remodeling Pahokee High Stadium Palm Beach Lakes High Addition & Academy Relocatables and Modulars Purchase Seminole Trails Elementary Addition Village Academy Buildout Wellington Elementary Addition Wellington High Veterinarian Academy Whispering Pines Elementary Addition Whispering Pines Classroom and Core Addition Subtotal Additions Site Acquisition Site Acquisition Subtotal Site Acquisition Debt Service Capital Contingency COP Lease Payments Commercial Paper Payments Repayment of RAN Subtotal Debt Service Total Construction FY ,000,000 FY 2013 FY 2014 FY 2015 $1,000,000 $0 $0 $0 $0 $0 $0 $0 2,614,310 3,884,415 7,984,847 6,391, ,000, ,000, ,000, ,000,000 $148,614,310 $149,884,415 $153,984,847 $152,391,636 $149,614,310 $149,884,415 $153,984,847 $152,391,

122 Summary of the Capital Improvement Program for Fiscal Years Prior to 2011 Plan Years Total Non-Construction Maintenance ADA 600, , , ,000 Athletic Facilities and Playfields 770, ,000 0 Building Envelope Maintenance Program (BEMP) 1,680,253 1,680,253 0 County Wide Custodial Equipment 115, ,000 0 Environmental Service Contracts 2,863,248 1,631,624 1,231,624 1,231,624 Fire & Life Safety Systems 1,000, , , ,000 Maintenance Projects 3,528,307 3,528,307 0 Minor Projects 6,046,164 6,046,164 0 Minor Projects - CSIR Projects 200, ,000 0 Minor Projects - Fencing / Security 300, ,000 0 Minor Projects - HVAC Projects 575, ,000 0 Minor Projects - Playground Replacement/Upgrades 300, ,000 0 Minor Projects - Storage Projects 200, ,000 0 Minor Projects - Title 9 Gender Equity 250, ,000 0 Preventive Maintenance 2,906,960 2,906,960 0 Relocatables - Leasing 54,600 54,600 0 Relocatables - Relocation 5,764,477 2,882,238 2,882,239 2,882,239 Projected Maintenance Projects for FY ,483, ,483,129 Subtotal Maintenance $60,637,138 $22,140,146 $38,496,992 $5,013,863 Transfers to General Fund Charter Schools Capital Outlay 6,982,936 3,524,389 3,458,547 3,458,547 Maintenance of Equipment 4,968,002 4,968,002 0 Maintenance of Facilities 78,892,891 29,849,081 49,043,810 49,043,810 Technology Maintenance 49,564,348 29,805,971 19,758,377 19,758,377 Property and Flood Insurance 17,684,819 9,313,819 8,371,000 8,371,000 Survivor's Facility Lease 1,432,301 1,034, , ,500 Television Education Network 1,991,960 1,895,802 96,158 96,158 Projected Transfer for FY ,123, ,123,468 Subtotal Transfers to General Fund $412,640,725 $80,391,865 $332,248,860 $81,125,392 Transportation School Buses and Equipment 7,808,761 4,025,961 3,782,800 3,782,800 Projected for Transportation for FY ,044, ,044,939 Subtotal Transportation $17,853,700 $4,025,961 $13,827,739 $3,782,800 FY

123 Summary of the Capital Improvement Program for Fiscal Years Non-Construction Maintenance ADA Athletic Facilities and Playfields Building Envelope Maintenance Program (BEMP) County Wide Custodial Equipment Environmental Service Contracts Fire & Life Safety Systems Maintenance Projects Minor Projects Minor Projects - CSIR Projects Minor Projects - Fencing / Security Minor Projects - HVAC Projects Minor Projects - Playground Replacement/Upgrades Minor Projects - Storage Projects Minor Projects - Title 9 Gender Equity Preventive Maintenance Relocatables - Leasing Relocatables - Relocation Projected Maintenance Projects for FY Subtotal Maintenance Transfers to General Fund Charter Schools Capital Outlay Maintenance of Equipment Maintenance of Facilities Technology Maintenance Property and Flood Insurance Survivor's Facility Lease Television Education Network Projected Transfer for FY Subtotal Transfers to General Fund Transportation School Buses and Equipment Projected for Transportation for FY Subtotal Transportation FY 2012 FY 2013 FY 2014 FY ,474,092 8,592,398 8,471,085 7,945,554 $8,474,092 $8,592,398 $8,471,085 $7,945,554 63,555,692 64,442,984 63,533,139 59,591,653 $63,555,692 $64,442,984 $63,533,139 $59,591,653 2,542,228 2,577,719 2,541,326 2,383,666 $2,542,228 $2,577,719 $2,541,326 $2,383,

124 Summary of the Capital Improvement Program for Fiscal Years Prior to 2011 Plan Years Total Technology Antivirus/Malware 623, , ,250 Apple Integration 40,000 40,000 0 Computer Assisted Facility Management (CAFM) 3,310,653 1,779,739 1,530,914 1,530,914 Computer Purchases / Admin Refresh 1,427, , , ,352 Computer Refresh 9,373,366 4,930,486 4,442,880 4,442,880 County Fiber Construction 1,200,000 1,200,000 0 Disaster Recovery 650, , , ,000 Disk Storage for Backups in Data Center 310, , ,000 District Server Refresh 775, , , ,500 E-Discovery 1,000,000 1,000,000 0 Green Data Center/Optimization 290, , ,000 Hardware / Software Purchases 454, , , ,000 Hardware / Software Quality Assurance 15,000 15,000 15,000 Heat Integration 20,000 20,000 0 Identity Management Suite 431, ,000 0 Instructional Application Proactive Monitoring 295, , ,000 Intrusion Prevention 480, , ,000 IT Security 50,000 50,000 0 Mainframe System Upgrade 1,000,000 1,000,000 0 Network Infrastucture for Internet Connectivity 1,950,000 1,950,000 1,950,000 Network Operations Center 95,000 95,000 0 New Schools - Administrative Technology 81,900 81,900 0 PC Management Software 800, ,000 0 Project Management Office 79,253 79,253 0 RedSky E ,000 55,000 0 Replace Obsolete Data Backup Technology at School 262, , ,752 RSA Expansion with Security ID Use 25,000 25,000 0 SAN Capacity Buildout 350, ,000 0 School LAN Switch 400, ,632 0 School Network Moves - Adds - Changes 300, ,000 0 School Web Cache 284, ,000 0 Student Application Integration 150, , ,000 Student Logon Security 150, , ,000 User Logon Recovery & Audit Trail 335, , ,000 User Logon Scripting 280, , ,600 Video Conferencing 100, ,000 0 Windows 2008 CALs 405, , ,000 Windows 7 Upgrades 100, , ,000 Wireless Infrastructure Student Applications 350, , ,000 Wireless Security 219, ,425 0 Projected for Technology for FY ,134, ,134,816 Subtotal Technology $58,654,180 $15,271,116 $43,383,064 $13,248,248 FY

125 Summary of the Capital Improvement Program for Fiscal Years Technology Antivirus/Malware Apple Integration Computer Assisted Facility Management (CAFM) Computer Purchases / Admin Refresh Computer Refresh County Fiber Construction Disaster Recovery Disk Storage for Backups in Data Center District Server Refresh E-Discovery Green Data Center/Optimization Hardware / Software Purchases Hardware / Software Quality Assurance Heat Integration Identity Management Suite Instructional Application Proactive Monitoring Intrusion Prevention IT Security Mainframe System Upgrade Network Infrastucture for Internet Connectivity Network Operations Center New Schools - Administrative Technology PC Management Software Project Management Office RedSky E-911 Replace Obsolete Data Backup Technology at School RSA Expansion with Security ID Use SAN Capacity Buildout School LAN Switch School Network Moves - Adds - Changes School Web Cache Student Application Integration Student Logon Security User Logon Recovery & Audit Trail User Logon Scripting Video Conferencing Windows 2008 CALs Windows 7 Upgrades Wireless Infrastructure Student Applications Wireless Security Projected for Technology for FY Subtotal Technology FY 2012 FY 2013 FY 2014 FY ,626,683 7,733,158 7,623,977 7,150,998 $7,626,683 $7,733,158 $7,623,977 $7,150,

126 Summary of the Capital Improvement Program for Fiscal Years Prior to 2011 Plan Years Total Education Technology Alternative Education 41,766 41,766 0 Digital Divide 170,000 85,000 85,000 85,000 Edline Student / Parent Portal 650, ,000 0 Hardware for Software Applications 45,000 45,000 0 Learning Village 69,000 69,000 0 New School Technology 495, ,000 0 Technology Tools 567, , , ,766 Projected for Education Technology for FY ,339, ,339,325 Subtotal Education Technology $3,377,623 $1,669,532 $1,708,091 $368,766 Security Card Access 77,000 77,000 0 Intrusion Alarm Systems 210, ,000 0 Narrow Band Radio 292, , , ,000 New Repeaters at Tower Sites 140, ,000 0 Video Surveillance Systems 392, ,000 0 Projected for Security for FY ,008, ,008,988 Subtotal Security $3,119,988 $931,000 $2,188,988 $180,000 Equipment AV Equipment Replacement 600, , , ,000 Choice and Career Academies Equipment Replaceme 500, ,000 0 Choice and Career Academies New Equipment 245, ,000 0 County-Wide Equipment 2,472,250 1,972, , ,000 Destiny Library System 10,000 10,000 0 Destiny Textbook Manager 5,000 5,000 0 Library Books for New Schools 280, , , ,000 Musical Instruments 280, , , ,000 Projected for Equipment for FY ,696, ,696,626 Subtotal Equipment $11,088,876 $3,312,250 $7,776,626 $1,080,000 Total Non-Construction $567,372,229 $127,741,870 $439,630,359 $104,799,069 Grand Total $2,642,436,859 $1,272,021,797 $1,370,415,062 $429,708,564 FY

127 Summary of the Capital Improvement Program for Fiscal Years Education Technology Alternative Education Digital Divide Edline Student / Parent Portal Hardware for Software Applications Learning Village New School Technology Technology Tools Projected for Education Technology for FY Subtotal Education Technology Security Card Access Intrusion Alarm Systems Narrow Band Radio New Repeaters at Tower Sites Video Surveillance Systems Projected for Security for FY Subtotal Security Equipment AV Equipment Replacement Choice and Career Academies Equipment Replaceme Choice and Career Academies New Equipment County-Wide Equipment Destiny Library System Destiny Textbook Manager Library Books for New Schools Musical Instruments Projected for Equipment for FY Subtotal Equipment Total Non-Construction Grand Total FY 2012 FY 2013 FY 2014 FY , , , ,822 $338,964 $343,696 $338,843 $317, , , , ,733 $508,446 $515,544 $508,265 $476,733 1,694,818 1,718,480 1,694,217 1,589,111 $1,694,818 $1,718,480 $1,694,217 $1,589,111 $84,740,922 $85,923,979 $84,710,852 $79,455,537 $234,355,232 $235,808,394 $238,695,699 $231,847,

128 5-18

129 DEBT SERVICE FUND The Debt Service Fund is used to account for the accumulation of resources for, and payment of, long-term debt principal and interest. For , revenue is comprised of Capital Outlay and Debt Service withheld for State Board of Education (SBE)/Capital Outlay Bond Issues (COBI), transfer in from the Capital Projects Fund and beginning fund balance. Appropriations are used to repay principal, interest and related fees. The total Debt Service budget for is $262,457,902. This reflects a $1,509,189 decrease from the previous fiscal year debt service budget of $263,967,091. Beginning fund balance is available to make the August principal and interest payments. Principal and interest payments are due each February and August. Outstanding Debt Capital Outlay Bond Issues are bonds issued by the State Board of Education for the school district. This debt is retired through both the Debt Service Fund and the Capital Projects Fund. The outstanding principal owed on COBI s as of 6/30/10 is $29,645,000. The last COBI issued by the district was in The District plans to participate in a new COBI during The maturity dates range from 2015 to The district also makes use of Certificates of Participation and Qualified Zone Academy Bonds to finance capital projects. Outstanding balances as of 6/30/10 are $1,886,293,634. Maturity dates extend from 2015 to Amortization of Debt Amortization of principal and interest for is as follows: COBI s $4,814,346 COP s $147,858,622 Legal Debt Limits Florida Statutes permit school districts to dedicate a maximum of 75% of their capital outlay millage (1.570 mills) to debt service. The district policy recommends a maximum of mill for debt service, with the objective of reducing the maximum millage for debt service to 50%. With voter approval, school districts may bond up to 10% of the county s assessed valuation. For Palm Beach Schools, this provides an additional $13.5 billion in potential debt capacity. Bond Ratings Sound financial management and the School Board s commitment to maintaining a Contingency Reserve have lead to very high bond ratings from all three of the major ratings agencies. Debt issued by the School District of Palm Beach County is considered to be of high quality and very secure. The high bond ratings translate to lower interest rates on District debt issues and save millions in avoided interest expenditures. 6-1

130 DEBT SERVICE FUND TENTATIVE REVENUE & APPROPRIATIONS ($000,000) Debt Service Funds are used to account for the accumulation of resources for, and payment of, general long-term debt principal and interest. Revenue for this fund is derived almost entirely from a transfer in from the capital projects fund. CO&DS withheld for SBE/COBI Bonds are bond certificates issued by the State Board of Education for the school district. Monies are appropriated for the retirement of debt and the interest expense related to that debt. REVENUE Tentative Budget % of Total State Sources $ % Transfers In % Fund Balance % TOTAL REVENUE $ % Fund Balance Tentative Revenue State Sources Transfers In APPROPRIATIONS Tentative % of Budget Total SBE & COBI Bonds $ % Other Debt Service % Fund Balance % TOTAL BUDGET $ % Fund Balance Tentative Appropriations SBE & COBI Bonds Other Debt Service 6-2

131 DEBT SERVICE FIVE YEAR HISTORY REVENUE Estimated Actual Actual Actual Actual Revenue Total State Revenue $5,765,162 $4,548,155 $4,576,206 $4,671,714 $4,736,031 Total Local Revenue 27,258, ,140 1,372,416 96,555 Other Financing Sources: Proceeds of Refunding Bonds 225,470,000 1,655,000 Premium on Refunding Bonds 5,329,280 3,641, ,040 Transfer from Capital 120,539, ,206, ,777, ,001, ,000,000 Total Other Financing Sources $351,339,206 $148,847,977 $154,777,266 $150,823,011 $148,000,000 Beginning Fund Balance 129,206, ,532, ,901, ,375, ,721,871 TOTAL REVENUE, TRANSFERS, & FUND BALANCE $513,569,621 $274,782,071 $264,627,811 $263,967,091 $262,457,902 EXPENDITURES Account Tentative Number Actual Actual Actual Actual Appropriations (Function 9200) Redemption of Principal 710 $67,930,000 $75,785,000 $58,705,000 $61,185,000 63,610,000 Interest ,792,221 87,603,721 96,967,363 90,802,469 90,215,408 Dues and Fees 730 3,918,072 1,443, , , ,843 Payments to Refunded Bond Escrow ,396,529 3,175,000 1,806,013 Total Expenditures $393,036,822 $168,007,164 $156,251,999 $154,245,221 $154,396,251 Transfer to Capital 2,872,985 Ending Fund Balance 120,532, ,901, ,375, ,721, ,061,652 TOTAL EXPENDITURES, TRANSFERS & FUND BALANCE $513,569,621 $274,782,071 $264,627,811 $263,967,091 $262,457,

132 DEBT SERVICE Existing Debt Service Obligations as of 6/30/10 Original Issue Maturity Interest Original Outstanding State Board of Education (SBE) Bonds: Series Date Date Rates Principal Principal Capital Outlay Bond Issue 1999A 3/1/99 1/1/ % 2,650,000 90,000 Capital Outlay Bond Issue 2002A 4/15/02 1/1/ % 2,845,000 2,185,000 Capital Outlay Bond Issue 2002B 7/15/02 1/1/ ,815,000 3,480,000 Capital Outlay Bond Issue 2003A 7/15/03 1/1/ % 6,050,000 5,035,000 Capital Outlay Bond Issue 2005A 5/1/05 1/1/ % 21,200,000 14,945,000 Capital Outlay Bond Issue 2005B 7/1/05 1/1/ % 2,675,000 2,405,000 Capital Outlay Bond Issue 2009A 9/10/09 1/1/ %-5.00% 1,655,000 1,505,000 Capital Outlay Bond Issue Subtotal $48,050,000 $29,645,000 Total Debt Service from State Sources * $48,050,000 $29,645,000 Lease Purchase Agreements: Certificates of Participation 2001A 4/1/01 8/1/ % 135,500,000 1,220,000 Certif. of Participation - Refunding 2001B 6/1/01 8/1/ % 169,445, ,990,000 Certificates of Participation 2002A 2/1/02 8/1/ % 115,250,000 43,915,000 Certificates of Participation 2002B 3/20/02 8/1/27 variable 115,350, ,350,000 Certificates of Participation 2002C 5/15/02 8/1/ % 161,090,000 11,270,000 Certificates of Participation 2002D 12/1/02 8/1/ % 191,215, ,830,000 Certificates of Participation 2002E 9/1/02 8/1/ % 93,350,000 67,495,000 Certificates of Participation 2003A 6/26/03 8/1/ % 60,865,000 43,675,000 Certificates of Participation 2003B 6/26/03 8/1/29 LIBOR + 30bps (mo.) 124,295, ,295,000 Certificates of Participation 2004A 5/4/04 8/1/ % 103,575,000 90,170,000 Certif. of Participation - Refunding 2005A 2/24/05 8/1/ % 124,630, ,900,000 Certificates of Participation 2005B 5/25/05 8/1/ % 38,505,000 8,320,000 Certificates of Participation 2006A 5/25/06 8/1/ % 222,015, ,570,000 Certificates of Participation 2007A 2/13/07 8/1/ % 268,545, ,125,000 Certificates of Participation 2007B 3/12/08 8/1/ % 116,225, ,225,000 Certificates of Participation 2007C 2/27/07 8/1/ % 192,310, ,850,000 Certificates of Participation 2007D 4/10/07 8/1/ % 30,485,000 26,680,000 Certificates of Participation 2007E 10/31/07 8/1/ % 147,390, ,390,000 Qualified Zone Academy Bond /11/02 6/11/ % 950, ,000 Qualified Zone Academy Bond /4/04 5/4/ % 2,353,896 2,923,326 Qualified Zone Academy Bond /15/05 12/15/ % 2,150,308 2,150,308 Certificates of Participation Subtotal $2,462,639,204 $1,886,293,634 Total Debt Service from Capital Budget ** $2,462,639,204 $1,886,293,634 Total Debt Service - All Types $2,510,689,204 $1,915,938,634 * Funding for the debt service on COBIs is withheld by the State from the District's CO & DS allocations. ** Funding for the debt service on COPs is provided from the School Board Capital Budget Millage. 6-4

133 DEBT SERVICE ESTIMATED LEGAL DEBT LIMITS General Obligation Bonds (GOBs): The Florida State Board of Education Administrative Rule 6A-1037 (2) establishes a parameter on bonded indebtedness for school districts. Limits are computed as ten percent of the assessed value of taxable property as of the most current year. The District can bond approximately $13.0 billion with voter approval. Funds may be used for schools listed in the advertised project list. Calculation: Non-Exempt Assessed Valuation of Palm Beach County $134,698,183,829 Limit of Bonded Indebtedness (10% of Assessed Valuation) $13,469,818,383 Less Outstanding Bonded Debt as of 6/30/10 Outstanding Capital Outlay Bond Issue (COBI) $29,645,000 Legal Debt Margin on Bonded Debt $13,440,173,383 Certificates of Participation (COPs): Debt service may not exceed an amount equal to seventy-five percent of the proceeds from the capital millage levied by the School Board. These revenue certificates are used as payment for educational facilities, sites, equipment and buses under a lease purchase agreement entered into by the School Board. Calculation: FY 2010 District Local Capital Improvement Tax ( Mills) $200,902,341 Debt Service Capacity (75% of Capital Millage) $150,676,756 Less FY 2010 Debt Service for $2,318,424,204 in COPs 147,858,622 Potential Additional Debt Service for COPs $2,818,134 Approximate Additional COPs Borrowing Capacity * $35,120,177 * Additional COPS borrowing capacity has been estimated based on an interest rate of 5% and a twenty year term. 6-5

134 DEBT SERVICE AMORTIZATION SCHEDULES CAPITAL OUTLAY BOND ISSUES (COBI) - All Series Fiscal Total Interest Total Year Principal Payment Debt Service ,405,000 1,409,346 4,814, ,655,000 1,252,703 4,907, ,910,000 1,084,488 4,994, ,185, ,131 5,078, ,910, ,806 4,595, ,820, ,988 4,313, ,600, ,988 1,906, ,145, ,000 1,376, , ,125 1,147, , , , ,000 97, , ,000 63, , ,000 25, ,713 TOTAL $29,645,000 $6,855,086 $36,500,086 CERTIFICATES OF PARTICIPATION (COPs) - All Series Fiscal Total Interest Total Year Principal Payment Debt Service ,205,000 87,653, ,858, ,035,000 84,787, ,822, ,150,000 81,774, ,924, ,825,000 78,933, ,758, ,730,000 75,821, ,551, ,980,000 72,492, ,472, ,610,000 69,105, ,715, ,010,000 65,591, ,601, ,700,000 61,807, ,507, ,253,634 57,922, ,175, ,945,000 53,899, ,844, ,145,000 49,693, ,838, ,365,000 45,314, ,679, ,135,000 40,739, ,874, ,785,000 35,974, ,759, ,570,000 30,987, ,557, ,205,000 25,765, ,970, ,830,000 20,267, ,097, ,810,000 14,322, ,132, ,045,000 8,319, ,364, ,010,000 4,233,670 52,243, ,410,000 1,778,658 52,188, ,540, ,860 10,801,860 TOTAL $1,886,293,634 $1,067,446,341 $2,953,739,

135 DEBT SERVICE DISTRICT BOND & NOTE RATINGS Rating Agency Short Term Notes Long Term - Certificates of Participation Moody's MIG 1 Aa3, Stable Outlook Standard and Poor's SP-1+ AA, Stable Outlook Fitch not rated AA-, Stable Outlook Moody s Investor Service: Ratings for Long-Term Municipal Debt Aaa Best quality; carry the smallest degree of investment risk. Aa High quality; margins of protection not quite as large as the Aaa bonds. A Upper medium grade; security adequate but could be susceptible to impairment. Baa Medium grade; neither highly protected nor poorly secured - lack outstanding investment characteristics and sensitive to changes in economic circumstances. Ba Speculative; protection is very moderate. B Not desirable investment; sensitive to day-to-day economic circumstances. Caa Poor standing; may be in default but with a workout plan. Ca Highly speculative; may be in default with nominal workout plan. C Hopelessly in default. Ratings further classified by 1, 2, or 3 modifier with 1 being high and 3 being low. Moody s Investor Service: Ratings for Short-Term Municipal Debt MIG 1 This designation denotes best quality. There is present strong protection by established cash flows, superior liquidity support or demonstrated broad-based access to the market for refinancing. MIG 2 This designation denotes high quality. Margins of protection are ample although not so large as in the preceding group. MIG 3 This designation denotes favorable quality. All security elements are accounted for but there is lacking the undeniable strength of the preceding grades. Liquidity and cash flow protection may be narrow and market access for refinancing is likely to be less well established. MIG 4 This designation denotes adequate quality. Protection commonly regarded as required of an investment security is present and although not distinctly or predominantly speculative, there is specific risk. 6-7

136 DEBT SERVICE DISTRICT BOND & NOTE RATINGS Standard & Poor's: Ratings for Long-Term Municipal Debt AAA Highest rating; extremely strong security. AA Very strong security; differs from AAA in only a small degree. A Strong capacity but more susceptible to adverse economic effects than two above categories. BBB Adequate capacity but adverse economic conditions more likely to weaken capacity. BB Lowest degree of speculation; risk exposure. B Speculative; risk exposure. CCC Speculative; major risk exposure. CC Highest degree of speculation; major risk exposure. C No interest is being paid. D Bonds in default with interest and/or repayment of principal in arrears. Those issues determined to possess overwhelming safety characteristics will be given a plus (+) designation. Standard & Poor's: Ratings for Municipal Notes SP-1 Very strong or strong capacity to pay principle and interest,. Those issues determined to possess overwhelming safety characteristics will be given a plus (+) designation. SP-2 Satisfactory capacity to pay principal and interest SP-3 Speculative capacity to pay principal and interest. Fitch Ratings: Ratings for Long-Term Municipal Debt AAA Highest rating; extremely strong security. AA Very strong security; differs from AAA in only a small degree. A Strong capacity but more susceptible to adverse economic effects than two above categories. BBB Adequate capacity but adverse economic conditions more likely to weaken capacity. BB Lowest degree of speculation; risk exposure. B Speculative; risk exposure. CCC, CC, C Extremely Weak; major risk exposure. D Bonds in default with interest and/or repayment of principal in arrears. + or - are used with a rating symbol to indicate the relative position of a credit within the rating category. 6-8

137 OTHER FUNDS Special Revenue ARRA Funds Under the American Recovery and Reinvestment Act, the district receives both state stabilization funds and targeted assistance funds. To ensure transparency and accountability for the use of these funds, they are held in separate funds. The district is receiving $59.7 million in state stabilization funding as part of the Florida Education Finance Program. State stabilization funds are provided to states for the intended use of avoiding job losses. Toward that goal, the district is using these funds for school and district positions. Targeted assistance funds received through ARRA are extensions of the federal entitlement grants, mainly Title I and IDEA. The district is receiving $91.9 million in targeted assistance. Special Revenue Other Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted or committed to expenditures for specific purposes. Revenue for this fund is primarily from federal sources and is provided for specific educational programs administered by the School Board. Federal grants included are Title I, II and V, and IDEA, as well as many other grants. The Special Revenue Fund Other total budget for FY 2011 is $99.0 million. The budget will continue to grow throughout the fiscal year, as additional grants are received. In comparison, the amended FY 2010 Special Revenue Other budget totaled $134.7 million. Special Revenue Food Service Fund Food Service operations are accounted for in a separate Special Revenue fund. Revenue is received from federal, state, and local sources, including school lunch fees. Funds are appropriated to provide for district wide school cafeteria operation. The Food Service budget for FY 2011 is $88.4 million. This is a 4.5% increase over the amended FY 2010 budget of $84.6 million. 7-1

138 OTHER FUNDS Internal Service Funds The Internal Service Funds are used to record self-insurance revenues and expenditures, as well as services provided by one department to another within the District on a cost reimbursement basis. The District moved to health care self insurance in January Premiums charged to the District and employees are recorded as revenue in the internal service fund. Expenditures consist of claims expense and administrative costs paid to United Healthcare. The FY 2011 Self Insurance Fund budget is $175.3 million. The Internal Service Fund is also used by the District to account for a portion of the District's maintenance budget. Expenses within this fund are charged back to either the Operating Fund or Capital Fund. The Maintenance Internal Service Fund budget for FY 2011 is $33.2 million. The internal service fund is not included in total budget figure in order to avoid duplication of expenditures. 7-2

139 SPECIAL REVENUE - ARRA FUNDS TENTATIVE REVENUE & APPROPRIATIONS ($000,000) Special Revenue - American Recovery and Reinvestment Act (ARRA) Funds are used to account for the proceeds of specific revenue sources that are legally restricted or committed to expenditures for specific purposes. These funds will be used to achieve equity in teacher distribution and quality, enhance academic standards and assessments, improve the collection and use of data, and support struggling schools. Revenue for this fund is from federal sources. REVENUE Tentative Budget % of Total Fiscal Stabilization - K12 $ % IDEA % Title I % TOTAL REVENUE $ % IDEA Title I Tentative Revenue Fiscal Stabilization - K Tentative Appropriations APPROPRIATIONS Tentative % of Budget Total Salaries & Employee Benefits $ % Purchased Services % Materials & Supplies % Capital Outlay % Other Expenses % TOTAL BUDGET $ % Materials & Supplies Purchased Services Capital Outlay Other Expenses Salaries & Employee Benefits 7-3

140 SPECIAL REVENUE - ARRA TWO YEAR HISTORY REVENUE Estimated Actual Revenue Federal Through State $98,964,091 $91,855,432 TOTAL REVENUE & FUND BALANCE $98,964,091 $91,855,432 EXPENDITURES Account Tentative Number Actual Appropriations Instructional Services 5000 $ 16,636,232 $8,405,351 Support Services: Pupil Personnel ,409,679 9,462,057 Media Services ,736,881 3,089,220 Curriculum Development ,164,702 9,155,443 Instructional Staff Training ,223,864 18,598,161 Instr Related Technology ,569,076 3,714,829 General Administration ,128,899 1,962,810 School Administration , ,538 Fac. Acquisition & Constr ,828 Fiscal Services ,205 Food Services ,969 Central Services ,848 Pupil Transportation ,168,084 3,246,243 Operations of Plant ,262,238 34,020,779 Community Services ,000 Total Instruct'l & Support Svcs $98,964,091 $91,855,432 TOTAL EXPENDITURES & FUND BALANCE $98,964,091 $91,855,

141 SPECIAL REVENUE - OTHER FUNDS TENTATIVE REVENUE & APPROPRIATIONS ($000,000) Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted or committed to expenditures for specific purposes. Revenue for this fund is primarily from federal sources and is to provide for specific educational programs administered by the School Board. REVENUE Tentative Budget % of Total IDEA $ % Title I % Federal Direct % Misc Federal Through State % State % Local Sources % Federal Direct Tentative Revenue Misc Federal Through State State Local Sources IDEA Fund Balance TOTAL REVENUE $ % Title I Tentative Appropriations APPROPRIATIONS Tentative Budget % of Total Salaries & Employee Benefits $ % Purchased Services % Materials & Supplies % Capital Outlay % Other Expenses % TOTAL BUDGET $ % Purchased Services Materials & Supplies Capital Outlay Other Expenses Salaries & Employee Benefits 7-5

142 SPECIAL REVENUE - OTHER FIVE YEAR HISTORY REVENUE Estimated Actual Actual Actual Actual Revenue Federal Direct $3,973,559 $ 3,355,824 $ 6,576,764 $ 6,990,452 $1,128,684 Federal Through State 95,745, ,757, ,868,676 98,660,231 95,113,702 State Sources 1,422,016 1,815, , , ,439 Local Sources 11,248,650 7,348,075 5,500,670 6,163, ,760 Beginning Fund Balance 2,981,143 3,298,284 1,750,000 TOTAL REVENUE & FUND BALANCE $115,370,820 $117,575,419 $119,351,381 $112,017,029 $99,031,585 EXPENDITURES Account Tentative Number Actual Actual Actual Actual Appropriations Instructional Services 5000 $52,928,400 $ 52,099,822 $ 56,210,465 $ 48,044,290 $42,334,792 Support Services: Pupil Personnel ,311,763 14,095,211 14,297,443 9,878,645 10,023,120 Media Services ,244 32,872 31,096 36,817 50,882 Curriculum Development ,644,703 21,465,363 22,514,953 20,738,785 20,168,549 Instructional Staff Training ,579,886 19,317,105 19,930,142 25,849,678 19,853,419 Instr Related Technology ,421 13,367 53,627 49,103 Board of Education ,627 General Administration ,903,089 1,895,586 2,655,479 2,693,283 2,541,604 School Administration ,848 13, Fac. Acquisition & Constr ,493 2,018,192 1,037, ,031 Fiscal Services ,731 30,872 Food Services 7600 Central Services , , , ,245 1,892,650 Pupil Transportation ,392,483 2,080,302 1,372,850 1,954,144 2,126,578 Operations of Plant ,369, , ,615 88,116 20,000 Maintenance of Plant , ,992 Admin Technology Svcs 8200 Community Services ,535, , ,034 68,347 Total Instruct'l & Support Svcs $112,072,536 $114,847,380 $119,351,381 $110,267,029 $99,031,585 Transfer to General Fund 2,728,039 Ending Fund Balance 3,298,284 1,750,000 TOTAL EXPENDITURES & FUND BALANCE $115,370,820 $117,575,419 $119,351,381 $112,017,029 $99,031,

143 SPECIAL REVENUE - FOOD SERVICE FUND TENTATIVE REVENUE & APPROPRIATIONS ($000,000) Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted or committed to expenditures for specific purposes. This particular fund is for school food service. Revenue is received from federal, state, and local sources to provide for the operation and maintenance of school meal programs. Funds are appropriated to provide for district wide school cafeteria operation. REVENUE Tentative % of Budget Total Federal through State $ % State Sources % Local Sources % Fund Balance % TOTAL REVENUE $ % Fund Balance Tentative Revenue Federal through State Local Sources State Sources APPROPRIATIONS Tentative % of Budget Total Salaries $ % Employee Benefits % Purchased Services % Energy Services % Materials & Supplies % Capital Outlay % Other Expenses % Sub-Total $ % Fund Balance % TOTAL BUDGET $ % Other Expenses Capital Outlay Tentative Appropriations Fund Balance Salaries Employee Benefits Materials & Supplies Energy Services Purchased Services 7-7

144 SPECIAL REVENUE - FOOD SERVICE FIVE YEAR HISTORY REVENUE Estimated Actual Actual Actual Actual Revenue Federal Through State $31,451,323 $33,743,505 $37,994,412 $42,990,182 $43,491,000 State Sources 853, , , , ,000 Local Sources 26,416,644 25,955,911 24,039,537 20,612,525 22,770,000 Beginning Fund Balance 17,038,883 18,133,960 17,819,738 20,052,860 21,183,874 TOTAL REVENUE, TRANSFERS, & FUND BALANCE $75,760,126 $78,744,411 $80,790,945 $84,581,151 $88,379,874 EXPENDITURES Account Tentative Number Actual Actual Actual Actual Appropriations Function (7600) Salaries 100 $18,466,124 $18,427,620 $17,526,725 $17,170,697 $17,829,883 Employee Benefits 200 8,342,500 8,923,982 8,752,611 8,550,918 12,026,392 Purchased Services 300 4,424,221 5,789,792 6,874,302 8,158,165 7,745,800 Energy Services ,156 1,029,152 2,427,113 2,192,650 2,862,200 Materials & Supplies ,400,391 23,920,455 23,331,417 24,971,836 26,739,600 Capital Outlay ,786 1,393, , ,963 1,586,100 Other Expenses 700 1,435,988 1,439,908 1,587,006 1,815,048 1,555,000 Total Expenditures $57,626,166 $60,924,673 $60,738,085 $63,397,277 $70,344,975 Ending Fund Balance 18,133,960 17,819,738 20,052,860 21,183,874 18,034,899 TOTAL EXPENDITURES, TRANSFERS & FUND BALANCE $75,760,126 $78,744,411 $80,790,945 $84,581,151 $88,379,

145 INTERNAL SERVICE FUNDS TENTATIVE REVENUE & APPROPRIATIONS ($000,000) Internal Service Funds are utilized to track the cost of self-insurance, as well as account for the cost of services provided by one department to other departments within the school district on a cost reimbursement basis. The District began self-insuring for health costs in January Premium revenues and claims expense are recorded in this fund. Additionally, a portion of the District's maintenance budget is contained in the Internal Service Fund. Maintenance expenses incurred within this fund are charged back to the Operating Fund or Capital Fund. REVENUE Tentative Budget % of Total Charges for Services $ % Premium Revenue % Other Operating Revenue % Non-operating Revenue % Beginning Fund Balance % TOTAL REVENUE $ % Other Operating Revenue Tentative Revenue Nonoperating Revenue Beginning Fund Balance Charges for Services Premium Revenue APPROPRIATIONS Tentative % of Budget Total Salaries $ % Employee Benefits % Purchased Services % Capital Outlay % Other Expenses (Claims) % Ending Fund Balance % TOTAL BUDGET $ % Tentative Appropriations Ending Fund Balance Salaries Employee Benefits Purchased Services Capital Outlay Other Expenses (Claims) 7-9