Budget Overview Budget Workshop June 27, 2013
Presentation Outline Budget Assumptions Funding Data State-Wide Brevard Enrollment Projections Possible Millage Budget Info Operating Capital Format of Budget Books Next Steps Q&A 2
Operating Budget Assumptions Assumes Proposed Budget Cuts and Revenue Enhancements as adopted by the Board on March 12, 2013 For the Operating Budget, assumes a tax roll increase of 2.91% as reflected in the 1st FEFP Calculation as adopted by the Legislature on March 6 (2nd Calculation available mid- July) For the Capital Budget, assumes a tax roll increase of 4.29% as reflected in the preliminary tax roll estimate by the Property Appraiser Assumes the Board will continue to move 0.25 mills from the capital budget to the operating budget 3
Change in FTE (Students) STATE TOTAL: Source: Final Conference Report for 2013-14 SB1500 dated April 29, 2013 4
K-12 Budget Contains Student Growth Projections used by the State are 917.85 (1.31%) less than Brevard s Request due to Recalibration of FTE State-Wide FTE has been adjusted to reflect the application of the revised FTE calculation methodology which limits the FTE a student can earn to a maximum of 1.0 In the past, School Districts and Florida Virtual Schools (FLVS) each earned a portion of the student s FTE with the total of the parts being greater than 1.0 Brevard projections submitted to the State were flat (-3.49 FTE or -0.005%) does not reflect Recalibration of FTE State projected a decrease of 5,481 FTE (or -0.203%) does reflect Recalibration of FTE 5
K-12 Budget Contains Total Increase Statewide is $1.054B (or +6.12%) State-wide average per student = $6,778.86 (+$404.04) Brevard average per student = $6,900.87 (+$410.83) Brevard s Funding Adjustments by Source: Elimination of the 0.25 Critical Needs Operating Millage & Associated Compression Continuation of Compression for the 0.748 Mills 6
Statewide K-12 Budget Contains Class Size Reduction (CSR) of $2.98B Includes $17,907 increase in CSR 28.43% of total state funding for K-12 16.28% of total state and local funding for K-12 State still allowing flexibility in use of CSR dollars Again, no State allocation for capital needs related to CSR Teacher Salary Increase Allocation of $480m 4.59% of total state funding for K-12 2.63% of total state and local funding for K-12 7
Change in Funding STATE TOTAL: Source: Final Conference Report for 2013-14 SB1500 dated April 29, 2013 8
2013-14 District Cost Differential 13 Districts Over 1.0000 Rank District DCD 1 Hillsborough 1.1270 2 Palm Beach 1.0326 3 Monroe 1.0271 4 Broward 1.0235 5 Collier 1.0221 6 Lee 1.0198 7 Manatee 1.0143 8 Miami-Dade 1.0123 9 Duval 1.0123 10 Brevard 1.0088 11 Orange 1.0034 12 Sarasota 1.0010 13 Martin 1.0006 Source: FEFP 1 st Calculation 9
2013-14 FEFP Funding Issues Base Student Allocation (BSA) $3,752.30 Since start of 2007-08 decrease of $327.44 or -8.03% Since 2012-13 increase of $169.32 or +4.73% District Cost Differential (DCD) 1.0088 Increase of 0.0029 or +0.29% BSA times DCD $3,785.32 Since start of 2007-08 decrease of $231.18 or -5.76% Since 2012-13 increase of $181.20 or +5.03% 10
Base Student Allocation & District Cost Differential Fiscal Year BSA DCD BSA * DCD Difference 2003-04 3,630.03 0.9699 3,520.77 69.26 2004-05 3,670.26 0.9755 3,580.34 59.57 2005-06 3,742.42 0.9804 3,669.07 88.73 2006-07 3,981.61 0.9865 3,927.86 258.79 2007-08 * 4,163.47 0.9845 4,098.94 171.08 2007-08 4,079.74 0.9845 4,016.50-82.44 2008-09 * 3,971.74 0.9843 3,909.38-107.12 2008-09 3,886.14 0.9843 3,825.13-84.25 2009-10 3,630.62 0.9892 3,591.41-233.72 2010-11 3,623.76 0.9938 3,601.29 9.88 2011-12 3,479.22 1.0014 3,484.09-117.20 2012-13 ^ 3,582.98 1.0059 3,604.12 120.03 2013-14 * 3,752.30 1.0088 3,785.32 181.20 Source: Final FEFP Calculation for each year except as follows: * 1 st FEFP Calculation ^ 4 th FEFP Calculation 11
Total Operating Budget Funding Source: FEFP 4 th Calculation (*1 st Calculation Used for 2013-14) Fiscal Year Total Funds Difference 2006-07 $498,194,488 -- 2007-08 $516,228,580 $18,034,092 2008-09 $492,861,236 -$23,367,344 2009-10# $492,531,417 -$329,819 2010-11# $490,705,029 -$1,826,388 2011-12 $446,187,575 -$44,517,454 2012-13 $457,624,624 $11,437,049 2013-14* $480,234,884 $22,610,260 # Included Federal ARRA Dollars (American Recovery and Reinvestment Act) 12
Brevard s Ranking in Funding Districts Ranked Highest to Lowest Fiscal Year $ per FTE 2000-01 38 th 2001-02 38 th 2002-03 34 th 2003-04 37 th 2004-05 33 rd 2005-06 36 th 2006-07 34 th Fiscal Year $ per FTE 2007-08 37 th 2008-09 33 rd 2009-10 35 th 2010-11 25 th 2011-12 26 th 2012-13 22 nd 2013-14 22 nd Source: FEFP Final Conference Report (1 st Calculation) for each year 13
Total Revenue per FTE - Operating Budget (Excluding Fund Balance, but Including State Fiscal Stabilization & Ed Jobs Funds) 8,000 7,500 7,000 General Fund Without Fund Balance 7,064.97 7,535.56 7,133.19 7,109.20 7,188.35 7,146.28 6,500 6,698.56 6,865.14 6,000 6,071.02 6,328.48 5,500 5,000 5,256.18 5,133.45 5,329.24 5,551.66 4,953.12 4,500 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Source: Data from Annual Financial Reports, except 2012-13 estimated and 2013-14 projected Note: Both 2010-11 & 2011-12 have been adjusted by $207.71 to reflect the receipt & use of the Federal Ed Jobs Funds
Change in Funding STATE TOTAL: Source: Final Conference Report for 2013-14 SB1500 dated April 29, 2013 15
Funding Summary Spending Requirements Amount % Increase in FEFP Revenue 22,610,260 100.00 Teacher Salary Increase Allocation -12,608,111-55.76 Sub-Total $10,002,149 44.24 Instructional Materials (Legislative Increase) -225,885-1.00 Teacher Lead Allocation (Legislative Increase) -329,339-1.46 Sub-Total $9,446,925 41.78 Retirement Increase over Original $3m Estimate -2,589,993-11.45 Sub-Total $6,856,932 30.33 Recurring Board Contribution for Health Insurance ($20 per month) -1,600,000-7.08 Sub-Total $5,256,932 23.25 Dual Enrollment TBD TBD Charter School Growth TBD TBD Grand Total TBD TBD 16
Change in FTE (Students) STATE TOTAL: Source: Final Conference Report for 2013-14 SB1500 dated April 29, 2013 17
Total FTE (Students) Source: FEFP 4 th Calculation (*1 st Calculation Used for 2013-14) Fiscal Year FTE Difference 2006-07 73,813.14 2007-08 73,465.54-347.60 2008-09 72,200.50-1,265.04 2009-10 71,579.77-620.73 2010-11 71,192.82-386.95 2011-12 71,057.19-135.63 2012-13 70,511.82-545.37 2013-14* 69,590.48-921.34 18
Student Growth/Decline Year Membership Number Percent 2000-01 70,658 655 0.94 2001-02 71,625 967 1.37 2002-03 72,533 908 1.27 2003-04 73,912 1,379 1.90 2004-05 75,216 1,304 1.76 2005-06 76,062 846 1.12 2006-07 75,676-386 -0.51 2007-08 75,235-441 -0.58 2008-09 74,000-1,235-1.64 2009-10 73,352-648 -0.88 2010-11 72,913-439 -0.60 2011-12 72,906-7 -0.01 2012-13 72,526-380 -0.52 2013-14 * 72,743 217 0.30 * Projected for 2013-14 19
History of Student Membership Year Total District Charters 2000-01 70,658 69,608 1,050 2001-02 71,625 70,212 1,413 2002-03 72,533 70,957 1,576 2003-04 73,912 72,150 1,762 2004-05 75,216 73,099 2,117 2005-06 76,062 73,230 2,832 2006-07 75,676 72,210 3,466 2007-08 75,235 72,215 3,020 2008-09 74,000 70,951 3,049 2009-10 73,352 70,152 3,200 2010-11 72,913 69,459 3,454 2011-12 72,906 70,320 2,586 2012-13 72,526 69,997 2,529 2013-14 * 72,743 69,033 3,710 * Projected for 2013-14 20
Details of Change in Membership Year Total District Charters 2000-01 655 368 287 2001-02 967 604 363 2002-03 908 745 163 2003-04 1,379 1,193 186 2004-05 1,304 949 355 2005-06 846 131 715 2006-07 -386-1,020 634 2007-08 -441 5-446 2008-09 -1,235-1,264 29 2009-10 -648-799 151 2010-11 -439-693 254 2011-12 -7 861-868 2012-13 -380-323 -57 2013-14 * 217-964 1,181 * Projected for 2013-14 21
Students with Parents Working at KSC or CCAFS Historical Totals Year KSC CCAFS Total 2005-06 5,633 1,571 7,204 2006-07 5,174 1,565 6,739 2007-08 5,025 1,440 6,465 2008-09 4,935 1,355 6,290 2009-10 4,619 1,231 5,850 2010-11 3,941 1,152 5,093 2011-12 2,707 1,147 3,854 2012-13 2,446 986 3,432 Note: From 2011-12 to 2012-13, there has been a decrease of 422 (-10.95%) 22
Students with Parents Working at KSC or CCAFS Grade KSC CCAFS Total PreK 22 10 32 K 120 46 166 1 126 45 171 2 116 45 161 3 152 62 214 4 121 66 187 5 153 77 230 6 182 67 249 7 192 77 269 8 194 89 283 9 265 95 360 10 277 111 388 11 264 86 350 12 262 110 372 Total 2,446 986 3,432 23
Brevard s Tax Roll Growth & Decline Fiscal Year Tax Roll % Change 1999-00 15,910,272,000 -- 2000-01 16,924,947,000 6.38% 2001-02 18,316,371,454 8.22% 2002-03 19,695,633,660 7.53% 2003-04 22,087,435,919 12.14% 2004-05 25,334,959,340 14.70% 2005-06 31,060,244,010 25.98% 2006-07 39,311,747,501 26.57% 2007-08 40,927,287,793 4.11% 2008-09 41,345,104,921 1.02% 2009-10 36,725,460,270-11.17% 2010-11 32,390,012,540-11.81% 2011-12 27,812,038,128-14.13% 2012-13 * 27,457,119,387-1.28% 2013-14 ^ 28,632,714,623 4.28% Source: Comprehensive Annual Financial Reports (CAFR), except for the following: * Adjusted Final Taxable Value as of March 15, 2013 ^ Notice of Estimate for the 2013 Tax Roll as of May 30, 2013 24
Brevard s Tax Roll Growth & Decline Fiscal Year Tax Roll % Change 2007-08 40,927,287,793 4.11% 2008-09 41,345,104,921 1.02% 2009-10 36,725,058,991-11.17% 2010-11 32,390,012,540-11.80% 2011-12 27,812,038,128-14.13% 2012-13 * 26,446,211,043-4.91% 2012-13 # 27,206,326,184-2.18% 2012-13 & 27,502,891,297-1.11% 2012-13 > 27,457,119,387-1.28% 2013-14 < 28,485,478,179 3.75% 2013-14 ^ 28,632,714,623 4.28% * Taxable Value on FEFP 1 st Calculation dated March 6, 2012 # Estimated by Property Appraiser on May 30, 2012 & Certified Taxable Value by Property Appraiser on June 21, 2012 > Adjusted Final Taxable Value as of March 15, 2013 < Property Appraisers Preliminary Estimates dated April 30, 2013 ^ Notice of Estimate for the 2013 Tax Roll dated May 30, 2013 25
History of School Board Millage Levy Fiscal Year Total Millage Difference % 1998-99 9.578 -- -- 1999-00 9.171-0.407-4.25% 2000-01 8.908-0.263-2.87% 2001-02 8.674-0.234-2.63% 2002-03 8.605-0.069-0.80% 2003-04 8.405-0.200-2.32% 2004-05 8.194-0.211-2.51% 2005-06 7.963-0.231-2.82% 2006-07 7.667-0.296-3.72% 2007-08 7.531-0.136-1.77% 2008-09 7.661 0.130 1.73% 2009-10 7.687 0.026 0.34% 2010-11 7.653-0.034-0.44% 2011-12 8.112 0.459 6.00% 2012-13 8.096-0.016-0.20% 2013-14 7.711-0.385-4.76% Difference Since 1998-99 -1.867-19.49% Note: Each year the Board has levied the maximum allowed by law without voter referendum. 26
Proposed 2013-14 Millage* Operating - Required Local Effort - Local Discretionary - Critical Needs Capital Outlay Total Millage Actual 2012-13 Proposed 2013-14 Increase/ Decrease 5.598 5.463 * -0.135 0.748 0.748 0.000 0.250 0.000-0.250 1.500 1.500 0.000 8.096 7.711-0.385 * Subject to official certificated tax roll (7/1/13) and DOE recalculations 27
Tax on Residential Home Scenario #1 Assumes no change in assessed valuation of $100,000 home Home Value $100,000 Less Homestead Exemption -25,000 Taxable Value of Home $75,000 Taxes Paid in 2012-13 $607.20 Taxes Proposed for 2013-14* $578.33 Tax Decrease for 2013-14 -$28.87 * Subject to official certificated tax roll and DOE recalculations 28
Tax on Residential Home Scenario #2 Assumes 1.7% ($1,700) increase in assessed valuation of $100,000 home Home Value $101,700 Less Homestead Exemption -25,000 Taxable Value of Home $76,700 Taxes Paid in 2012-13 $607.20 Taxes Proposed for 2013-14* $591.43 Tax Decrease for 2013-14 -$15.77 * Subject to official certificated tax roll and DOE recalculations 29
Preliminary Budget Amended 2012-13 Preliminary 2013-14 Difference % Operating 534,889,668 541,805,312 6,915,644 1.29 Special Revenue 84,146,027 86,087,061 1,941,034 2.31 Debt Service 43,039,254 42,497,964-541,290-1.26 Capital Outlay 96,619,957 88,480,780-8,139,177-8.42 Enterprise Fund 8,293,039 8,281,799-11,240-0.14 Subtotal 766,987,945 767,152,916 164,971 0.02 Less Transfers 42,749,603 39,737,919-3,011,684-7.04 Total 724,238,342 727,414,997 3,176,655 0.44 Internal Service 80,002,105 76,746,328-3,255,777-4.07 30
Operating Budget Revenue Adopted 2012-13 Preliminary 2013-14 Difference % Federal 2,584,386 2,584,386 0 0.00 State - FEFP 211,707,047 227,676,046 15,968,999 7.54 State - Categoricals/Other 92,692,691 91,831,938-860,753-0.93 Local - Property Taxes 174,152,708 169,203,774-4,948,934-2.84 Local - Other 5,421,037 6,016,861 595,824 10.99 Total Revenue 486,557,869 497,313,005 10,755,136 2.21 Other Sources 1,299,035 1,299,035 0 0.00 Fund Balance 59,850,051 43,193,272-16,656,779-27.83 Grand Total 547,706,955 541,805,312-5,901,643-1.08 31
Capital Projects Revenues Estimated 2012-13 Preliminary 2013-14 Difference % PECO-New Constructio 0 0 0 0 PECO - Maintenance 0 0 0 0 Other-State 510,000 510,000 0 0.00 Local Revenue 39,688,252 46,118,106 6,429,854 16.20 Total Revenues 40,198,252 46,628,106 6,429,854 16.00 Other Sources 5,716,796 3,100,000-2,616,796-45.77 Fund Balance 50,704,909 38,752,674-11,952,235-23.57 Total 96,619,957 88,480,780-8,139,177-8.42 32
Capital Funds vs. Debt $150,000,000 $125,000,000 Last Year Millage Rate at 2.0 Mills $100,000,000 Legislation Changed to 1.75 Mills $75,000,000 Legislative Option to Reduce to 1.50 Mills &Taxable Value Decline of 11.17% $50,000,000 $25,000,000 Taxable Value Decline of 11.80% Taxable Value Decline of 14.13% Taxable Value Decline of 1.1% $0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 33
Capital Funds vs. Debt $150,000,000 $125,000,000 Last Year Millage Rate at 2.0 Mills $100,000,000 Legislation Changed to 1.75 Mills $75,000,000 Legislative Option to Reduce to 1.50 Mills &Taxable Value Decline of 11.17% $50,000,000 $25,000,000 Taxable Value Decline of 11.80% Taxable Value Decline of 14.13% Taxable Value Decline of 1.29% $0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 34
Property Tax Roll Percentage Scenarios Fiscal Year Previous Scenarios #1 #2 #3 #4 Current Scenario 2012-13 -9.00-5.06-2.00-1.40-1.29 2013-14 -4.50-0.65 0.00 2.92 4.28 2014-15 -2.00 2.61 3.00 2.93 7.00* 2015-16 0.00 3.70 6.00 3.77 4.00 2016-17 1.00 4.72 9.00 4.20 4.00 2017-18 - - - 4.87 5.00 * Includes addition of FPL facility, valued between $700 million to $1 billion Scenario #1: District s Estimates (November 2011 II-A Scenario with 2011-12 Tax Roll Updated) Scenario# 2: State s Estimates (2012-13 through 2016-17) Scenario #3: Best Case Based on Very Optimistic Approach (June 28, 2012) Scenario #4: State s Estimates (2013-14 through 2017-18 March 2013) Current Scenario: Revised Best Case Based on Very Optimistic Approach 35
Capital Revenue Scenarios 1-5 vs. Debt Based on 1.5 mills and 96% collections 60,000,000 55,000,000 50,000,000 Scenario #1: District's Estimates (November 2011 II-A Scenario w/ 2011-12 Tax Roll Update) Scenario #2: State's Estimates (2012-13 through 2016-17) Scenario #3: Best Case Based on Very Optimistic Approach (June 28, 2012) Scenario #4: State's Estimates (2013-14 through 2017-18 - March 2013) Scenario #5: Revised Best Case Based on Very Optimistic Approach Annual Debt Payments (COP + RAN) 4 45,000,000 3 40,000,000 35,000,000 1&2 30,000,000 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 36
Current Capital Funding Plan Fiscal Year A 2012-13 B 2013-14 C 2014-15 D 2015-16 E 2016-17 F 2017-18 G 2018-19 1 Tax Roll (in billions) $27.457 $28.633 $30.637 $31.862 $33.137 $34.794 $35.838 2 Percentage Change from Prior Year -1.29% 4.28% 7.00% 4.00% 4.00% 5.00% 3.00% Projected Recurring Revenue 3 Tax Revenue estimated at 96% collection $39.538 $41.231 $44.117 $45.882 $47.717 $50.103 $51.606 4 PECO New Construction Revenue - - - - - - 5 PECO Maintenance Revenue - - - - - - - 6 Interest Revenue/Other Miscellaneous 0.300 0.300 0.500 0.500 0.750 0.750 1.000 7 Impact Fees 0.000 4.737 - - - - - 8 CO & DS Revenue 0.360 0.360 0.360 0.360 0.360 0.360 0.360 9 Transfer from Operating 4.532 2.900 2.900 6.000 6.000 6.000 6.000 10 Non Recurring Trsf from Food Services 1.184 0.200 - - - - - 11 Projected Total Revenue $45.914 $49.728 $47.877 $52.742 $54.827 $57.213 $58.966 Debt Payment 12 RAN Payment 8.431 - - - - - - 13 COP Payment 35.709 35.291 35.294 38.401 38.403 38.397 38.713 14 Total Debt Payment $44.140 $35.291 $35.294 $38.401 $38.403 $38.397 $38.713 37
Current Capital Funding Plan Fiscal Year A 2012-13 B 2013-14 C 2014-15 D 2015-16 E 2016-17 F 2017-18 G 2018-19 Project Costs 16 ADA/Safety to Life 0.250 0.250 0.250 0.250 0.250 0.250 0.250 17 Bus Replacements/Equipment 1.000 1.000 1.000 1.000 1.000 1.000 2.000 18 Educational Technology 3.005 2.000 2.000 2.000 2.000 2.000 2.000 19 Preventive Maintenance-Facilities 7.000 7.000 7.000 7.000 7.000 7.000 7.000 20 Repair at Failure/Preventive Maintenance 1.510 1.510 1.510 1.510 1.510 1.510 2.000 21 Other District Projects 0.962 0.200 - - - - - 22 Capital Renewal Use of Fund Balance 0.000 13.126 13.126 - - - - 23 Capital Renewal Transfer from Operating 0.000 2.900 2.900 2.581 4.664 6.000 6.000 24 Total Project Costs $13.727 $27.986 $27.786 $14.341 $16.424 $17.760 $19.250 25 Balance Available after Project Costs -$11.953 -$13.549 -$15.203 $0.000 $0.000 $1.056 $1.003 Beginning Year Fund Balance 26 Carryforward-Restricted for D S Payments 2.192 2.016 - - - - - 27 Carryforward-Restricted for Encumbrances 2.931 2.065 2.000 2.000 2.000 2.000 2.000 28 Carryforward-Restricted for Capital Projects 13.549 13.454 12.717 8.000 8.000 8.000 8.000 29 Carryforward-Unrestricted funds 32.033 21.217 10.486 0.000 0.000 0.000 1.056 30 Total Beginning Fund Balance $50.705 $38.752 $25.203 $10.000 $10.000 $10.000 $11.056 31 Estimated Ending Fund Balance 38.752 25.203 10.000 10.000 10.000 11.056 12.059 38
Format of Budget Books Provided for comparison purposes Current year being compared to new year 2012-13: Adopted Budget (9/6/12) Amended Budget (as of 4/30/13) 2013-14: Preliminary Budget (6/27/13) Percent of total for each column has been included in the book for easy reference. Note: Budget books dating back to 1968-69 are available in the reference section of all Brevard public libraries. 39
Format of Budget Books Reminder that new salary object codes are being utilized in the Operating Budget (see page 15) All information will be updated for the First Public Hearing on August 1 st (including certified tax roll, automated labor & est. fund balances) Final year-end budget and expenditures will be provided for final public hearing (September 5 th ) Additional pages still provided for ARRA (Special Revenue Funds) to reflect Race to the Top dollars 40
Next Steps DOE to Certify Millage & Provide 2nd FEFP Calculation July 18 or 19 (Revenue & Millage Recalculation) Revise budget based on changes in millage and/or revenues Advertise 1st Public Hearing in Newspaper July 27 First Public Hearing to adopt Tentative Budget & Millage: August 1 at 5:30 p.m. in Board Room Second Public Hearing to adopt Final Budget & Millage: September 5 at 5:30 p.m. in Board Room Workshop on possible November, 2014 Referendum 41
Contact Information If you should require additional information, please contact: Judy Preston Associate Superintendent, Financial Services 321-633-1000, ext. 600 preston.judy@brevardschools.org Karen Strickland Director, Planning, Budgets, and Reporting 321-633-1000, ext. 610 strickland.karen@brevardschools.org Jo Ann Clark Director, Accounting Services 321-633-1000, ext. 660 clark.joann@brevardschools.org District Website: www.brevardschools.org 42
uestions nswers