Operations Update. Budget & Legislative Session. Mike Burke, COO Administrators & Supervisors Meeting April 7, 2015
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1 Operations Update Budget & Legislative Session Mike Burke, COO Administrators & Supervisors Meeting April 7, 2015
2 K-12 Proposed Legislative Budgets Overview Florida House and Senate Statewide K-12 budgets were released March 20, Both House and Senate propose funding levels less than the Governor s budget. Both budget proposals increase overall funding for K-12 by approximately $750 million statewide. 2
3 K-12 Proposed Legislative Budgets 3
4 K-12 Proposed Legislative Budgets 4
5 K-12 Proposed Legislative Budgets 5
6 Historical General Fund Appropriations 6
7 Historical General Fund Appropriations 7
8 FY 2016 Projected Revenue Estimated Revenue is based on information available as of March 26, Pass-through to charter school is expected to increase by $32.3 million to $167 million. Net Funding for Palm Beach County School District will increase $31.6 mil. (or 2.61%) under the House proposal and $30.6 mil. (or 2.52%) under the Senate proposal. After adjusting for the non-recurring funds utilized to balance FY 2015 budget and anticipated increases in revenue such as Spectrum Lease the district has $10.8 mil. under the House proposal and $11.5 million under the Senate proposal. 8
9 FY 2016 Projected Appropriations Changes to school based allocations were presented to the Budget Advisory Committee on March 6, Superintendent s Budget Review Committee recommended changes to District school based allocations to align school budgets with growth in charter school enrollment. District Operated Schools Savings of $16.0 million, representing 1.5% reduction in total cost of schools. Departments still under development, current savings of $3.3 million, representing 3.4% reduction in total cost of departments. 9
10 Projected Appropriations Potential reserve for salary increases: $12.1 mil for potential additional annualized impact of FY 2015 settlements $27.2 mil for FY 2016 employee salary bargaining reserve Applying savings from schools and departments, the projected shortfall is currently $9.2 million under the House proposal and $8.5 million under the Senate proposal. 10
11 Other Considerations Potential increase of $2.0 million to $3.0 million in revenue based on Governor s budget Impact of Extended Day requirements, i.e. addition/deletion of schools Actual FY 2016 Charter School enrollment versus projected growth of 4,000 students Actual Palm Beach County July 1, 2015 certificated tax values versus projection One time Spectrum lease revenue of $5.2 million. Consider directing a portion of these funds to the contingency fund. 11
12 Capital Budget Update Last year, the projected shortfall for the FY 2016 Capital Budget was $105 million. At this time, revenues are expected to increase by $2.2 million based on the latest property value projections. The Legislative session will be closely monitored for proposals that may impact the capital budget. 12
13 Capital Budget Process A thorough review of the capital budget is underway, assessing the District s needs. National benchmarks and recommendations are being used where appropriate. For example, The Council of Great City Schools released a report in October 2014, titled Reversing the Cycle of Deterioration in the Nation s Public School Buildings, which provides a wealth of information that directly relates to our planning process. 13
14 Facility Renewal Projects Renewal periods for common building components: Life of Facility Component 0 to 6 years 7 to 10 years Component/ System Life Cycle (years) Paint 7 Variable frequency drives 5 Battery power supply 5 Locks 20 to 30 Security devices/ sensors 10 Pumps 10 Motors 10 to 20 Air conditioning equipment (depending on type) 10 to 30 to 20+ years Roofs 15 to 20 Windows years Structure Bldg. Life Information data based on BOMA International (Building Owners and Managers Association), Preventative Maintenance Guidebook 14
15 Capital Budget Given the capital budget constraints, facility renewal projects will be prioritized along with other capital needs including: Maintenance of existing facilities and assets Replacement of school buses and other vehicles Computers and other technology School safety projects Property insurance Debt service payments 15
16 Legislative Update Assessment/Accountability: HB7069 has a number of common elements in both the House and Senate versions. What appears to be agreed: 1. districts will not have to make up end-of-course exams for all state courses other than the five that are state assessed; 2. State assessment will not count more than one-third of a teacher's evaluation and only for those whose students are state-assessed in English language arts and math on FSA (e.g. VAM scores); the remainder or other teachers will be evaluated on a plan adopted by the local school board that includes student data, principal review and other means; 3. Prescriptive language for promotion from one grade to another is eliminated and districts given greater flexibility to determining if a student is meeting state standards
17 Assessment/Accountability Legislation Continued: The House will consider the Senate version on the floor tomorrow (Wednesday) and is expected to agree to all except: 1. Senate language calling for an independent validation of the Florida Standards Assessment (FSA) before results are used for 3rd grade retention, high school promotion, school grades and teacher evaluation. This has the intent to delay use of FSA for all of FY15; House will likely not agree to this and send the bill back without it; 2. Senate language that no student would be tested for state or local assessments more than 5% of the instructional year (45 hours); in reality, no student is tested more than that and the issue remains the amount of time that districts and schools have to set aside for testing; What is NOT in the bill - any true transition of implementation over the next year or two to use FSA for diagnostic purposes and not for school grades, etc. An amendment by Sen. Dwight Bullard to provide a pass this year failed on a vote.
18 Legislative Update Continued: Healthcare and the potential price tag is the budget driver this session. Resolution of the issue will determine how much funding is available for education and all other appropriations. Proposal to share current 1.5 capital millage revenue with charter schools. (SB 7046) Calendar start date language currently proposed: May start no earlier than August 10. (HB 7069, which also contains an array of education accountability changes.) Class size legislation still in play that would raise compliance requirement to school wide average for all schools.
19 Legislative Update Continued: Weapons on campus - HB19 and SB180 are moving through the Legislature that would authorize school districts, not require them, to allow employees or volunteers who come from specialty training to carry concealed firearms on campus. Open Choice - HB1145 and SB1552 would allow for parents to have their child(ren) attend any public school within the county or in another county if there's space available as defined by the District. School uniforms funding may be available for Districts that implement a district wide uniform policy.
20 Thank you for your attention Presentation available online:
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