Presented to Sarasota REC meeting January 14 th, 2009
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1 Out of control spending must be reigned in. There IS a limit to what we can afford. Presented to Sarasota REC meeting January 14 th, 2009 By Walt Augustinowicz Policy Committee Chairman You can contact me at walt@augustinowicz.com 1
2 How much is enough? Per Budget In Sarasota County Schools appropriations budget was a whopping $23,104 per student according to the 2008/2009 Budget Facts published by the school board in October According to the fact sheet total budgeted appropriations i were $ million for the actual total student enrollment of 40,882.
3 Total Spending Total Students
4 How much is enough? Updated Per Actual In Sarasota County Schools actual appropriations was a huge $13,882 per student according to the updated figures provided to us by the school admin office this week. According to the sheet total appropriations were $ million for the actual total student enrollment of 41,389. Due to update we should amend line in resolution 1 to match this new number. 4
5 How much is enough? In the Sarasota County Schools appropriations budget is $18,875 per student according to recap sheet school admin office sent us this week. Charlotte County s total appropriations budget is $12, * per student. * Per Charlotte County School budget And Charlotte County Demographics 5
6 Budget Data from School Admin 6
7 How does that compare to private school? The average tuition of ten popular p private schools in Sarasota county is $6884 (inclusive of registration and annual fees.) $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 Tuition Comparison 7
8 Raw Data on School Tuition Private School Price Review Name Tuition Source Heritage Christian Academy $4,786Website Suncoast Christian i Academy $4,300Called lld Sarasota Christian School $8,325Called Venice Christian School $4,887Website Saint Martha School $6,170 Webite Cardinal Mooney $7,875Website Adopt a student form Epiphan Cathedral School $6,475Website Incarnation Catholic School $6,330Website The Tabernacle Christian School $6,050Website New Gate School $13,640Website Out of Door Academy never could get through always a voic (941) Average $6,884 Where there were multiple price tiers for different grades we used the middle shool tier. These were prices for 1 student. Most had discounts for 2 or more. We included annual fees and registration cost if provided by schools This may not be a complete list of all schools but enough to get a good indication 8
9 The school systems says we should only count the general fund when calculating per student costs. That is an invalid premise. Do you not count your mortgage payment when working on you household budget? Accountants would tell you to at least amortize the expenses over 30 years. We have 42 schools, if we only rebuild 1 to 2 a year at the price they are spending this type of budget will continue every year in perpetuity. 9
10 Does more money help? hl? FCAT The answer is NO. Florida Department of Education statistics on 10 th graders FCAT scores show Charlotte county has gone up in Reading, Math, and Writing while Sarasota has dropped in Reading and Writing since the tax increase was first passed in Charlotte does this without a the extra tax. Keep in mind Charlotte County s budget is also $12K per student not $19K and they are equal or better than Sarasota in Math and Writing. Data obtained through 10
11 Where is the money going? A large portion of the annual budget is being used to level our current schools and rebuild extravagant new smaller schools. We can t afford to do this in our current economy. Even the Florida Legislature thinks we are spending too much on our schools. 11
12 What does the State t of Florida think the maximum cost of construction of schools should be? TITLE XLVIII Chapter sets the maximum schools should spend per station if expecting help from the state under PECO. 6. Upon construction, the total cost per student station, tti including change orders, must not exceed the cost per student station as provided in subsection (6). For Jan 2010 that amount is $27,282 per station. * 12
13 Venice High School $91 million to rebuild Currently 70% occupied New school will be 27% smaller. Cost of $45,614 per student station! Remember that state has calculated it should cost no more than $27, per station *Facts and figures obtained from school board 5 year capital work plan 13
14 Booker High School $58 million to rebuild Currently 54% occupied New school will be 43% smaller. Cost of $47,300 per student station! Remember that state has calculated it should cost no more than $27,282 per station *Facts and figures obtained from school board 5 year capital work plan 14
15 SCTI $54 million to rebuild Currently 18% occupied! New school will be 32% smaller. Cost of $43,269 per student station! When complete school board estimates that even by 2014 it will still only be 24% full. Cost based on actual projected use is $180,000 per student station! Remember that state has calculated it should cost no more than $27,282 per station *Facts and figures obtained from school board 5 year capital work plan 15
16 Our Schools are Half Empty Maybe we should lease the space to charter schools? Total *Facts and figures obtained from school board 5 year capital work plan Pages 11 and 12 16
17 Why can t we vote down the school bonds? The Florida Constitution Article VII Section 12 requires bonds to be approved by a vote of the electors. Sarasota County in 1990 invented a scheme called a certificate of participation to bypass this vote. Our current school board members are ALSO directors of a separate non profit corporation that leases new schools back to the school district. 17
18 Certificates of Participation (COPs) School board signs a lease agreement with dummy corp. Dummy corp leases buildings back to school board Superintendent promises to put line in the budget to pay the lease. School board sells bonds called COPs to pay to build school 18
19 Sarasota County Lawsuit Because this was a blatant attempt to avoid a vote by the people a suit was filed against Sarasota County. It went all the way to the Florida Supreme Court. In a narrow vote it was deemed technically legal. NO. 74,979 STATE OF FLORIDA, Appellant, vs. SCHOOL BOARD OF SARASOTA COUNTY, Appellee. 19
20 Dissenting Supreme Court Judges Opinion Today the Court approves form over substance. The financial schemes employed in these cases are the equivalent to the issuance of bonds and pledging ad valorem taxes to support them. Thus, I totally disagree that the bonds in question can be approved without ih a referendum from the owners of freeholds as required by article VII, section 12 of the Florida Constitution. I believe it pure sophistry to say that "these obligations are not supported by the pledge of ad valorem taxation."; Entire ruling can be found at pdf 20
21 Proof Corporation Exists 21
22 Lease agreement 1 st page of lease. Can be found at Meeting%20on%20Tuesday,%20February%2017,%202009/6F6E C 467D AA65 C64F88BD787C.pdf 22
23 Martin County Funding Workshop Unfortunately other counties are now copying Sarasota. In the minutes for a Martin County funding workshop you can read the following Bob Nabors gave the legal background and provided an analysis of the Florida case law upholding the issuance by school districts of Certificates of Participation (COP) and lease purchase financings without elector approval by referendum under the Florida Constitution. COPs have now become the most utilized structure for financing educational facilities in Florida. *Minutes can be found at of Financing Alternative 8205 Workshop min.pdf 23
24 And don t forget School Board Pay You will note from the budget below that salary and benefits for a school board member $339,626 5 = $67,925 each! 24
25 It is time to send a message There are limits to what we tax payers can afford. Find other ways to improve schooling. Research what other municipalities with better schools and less funding are doing. Look outside of Florida. VOTE NO on the tax increase! 25
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