Introduction. Overview. Gibson Consulting Group, Inc. 1-1

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Overview The 2001 Florida Legislature created the Sharpening the Pencil Program to improve school district management and use of resources and to identify cost savings. Florida law requires each school district to undergo a Best Financial Management Practices Review once every five years and provides a review schedule. The best practices are designed to encourage school districts to use performance and cost-efficiency measures to evaluate programs; use appropriate benchmarks based on comparable school districts, government agencies and industry standards; identify potential cost savings through privatization and alternative service delivery; and link financial planning and budgeting to district priorities, including student performance. The Florida Legislature s Office of Program Policy Analysis and Government Accountability (OPPAGA) and the Auditor General developed the Best Practices, which were adopted by the Commissioner of Education. Under these reviews, OPPAGA and the Auditor General examine school district operations to determine whether districts are using the best practices to evaluate programs, assess operations and performance, identify cost savings and link financial planning and budgeting to district policies. OPPAGA has contracted the review of Collier County School District to Gibson Consulting Group, Inc. As illustrated in Exhibit 1-1, the best practices address district performance in 10 broad areas. Exhibit 1-1 Best Financial Management Practices Review Areas Management Structures Performance Accountability Systems Educational Service Delivery Administrative and Instructional Technology Personnel Systems and Benefits Facilities Construction Facilities Maintenance Student Transportation Food Service Operations Cost Control Systems Districts found to be using the Best Financial Management Practices are be awarded a Seal of Best Financial Management by the Florida Board of Education. Districts that are found not to be using Best Financial Management Practices will be provided a detailed two-year action plan for achieving compliance. The district school board must vote whether or not to implement this action plan. Gibson Consulting Group, Inc. 1-1

Methodology Gibson Consulting Group, Inc. used a variety of methods to collect information about Collier County School District's use of the Best Financial Management Practices. The evaluation team made several site visits to the district. The team interviewed district administrators and personnel, met with community leaders and school advisory committee chairs, interviewed board members, held one public forum, conducted focus groups with principals and teachers, and attended school board meetings. The review team also gathered and reviewed district financial data, data on program activities, and data on student performance. To put the district s programs and activities in context with other Florida school districts, Gibson Consulting Group, Inc. gathered information from five peer districts around the state: Lake, Lee, Manatee, Osceola and Pasco. The peer districts were selected based on their similarities across a number of categories, including the size of the student population and demographic information. County Profile As of July 1, 2001, the U.S. Census Bureau estimated that the total population of Collier County was 265,769. The population of the county increased by 65.3 percent between 1990 and 2000, which was a faster growth rate than the state s average growth of 23.5 percent during that same time period. The county seat of Collier County is the city of Naples. Of the county s population, 98% consider themselves to be one race, while the remaining 2.2% consider themselves multi-racial. The largest proportion of the population is white, with persons of Hispanic or Latino origin comprising 20% of the population, slightly higher than the statewide figure of 16.8%. In addition, 4.5% of the county s residents are Black or African American, which is considerably lower than the statewide figure of 14.6%. School age children, ranging in age from 5 to 19 years old, make up 20% of the county s population, with an additional 5.3% of the population are less than five years old. By contrast, 24% of the county s population is 65 years old or older. Approximately 81.8% of the county s residents aged 25 years or older are high school graduates, while 28% have graduated from college. These percentages are higher than the statewide figures of 80% and 22%, respectively. This means that the level of educational attainment in Collier County is higher than it is across the state. Collier County s per capita income in 2000 was $40,121, which was $12,357 above the state average. As shown in Exhibit 1-2, the per capita income of Collier County residents has been consistently higher than the per capita income of the state as a whole. 1-2 Gibson Consulting Group, Inc.

Exhibit 1-2 Per Capita Income of Collier County Residents Was $12,357 Above the State Average in 2000 Collier Florida $40,121 $28,077 $33,198 $27,764 $20,068 $22,942 1991 1995 2000 Source: Florida Research and Economic Database, 2003. The unemployment rate in Collier County has been lower than the state s rate for the past five years. Although the county s unemployment rate was only slightly below the state rate during 1998, 1999 and 2000, in 2001 and 2002 the county s unemployment rate was significantly lower then the state. This suggests that students who graduate from high school in Collier County may have less difficulty finding employment than graduates in other parts of the state. As of April 2003, Collier County had a civilian labor force of 122,617 people. The county s primary sources of employment include the service industries related to retail trade, construction and real estate and professional and business services. School District Profile In 2001-02, the Collier County operated 56 schools, as shown in Exhibit 1-3. Exhibit 1-3 Collier County Operated 56 Schools during 2001-02 Type of School Number Type of School Number Elementary 22 Adult Education 1 Middle 8 Alternative Education 12 Senior High 5 Special Schools 2 Vocational Technical 1 Other Schools 3 Charter Schools 2 Source: Florida Department of Education, Profiles of Florida School Districts, 2001-02. With 36,515 students in 2001-02, the Collier County School District was the 18th largest of the state s 67 school districts. The student population growth has fluctuated between 1997-98 and 2001-02, for a total net increase of 25%, as shown in Exhibit 1-4. This growth in enrollment was much higher than the 8.9% increase in enrollment across the state. Gibson Consulting Group, Inc. 1-3

Exhibit 1-4 Enrollment Growth in Collier County Has Fluctuated Over the Past Five Years 29,251 27,817 32,302 34,192 36,515 1997-98 1998-99 1999-00 2000-01 2001-02 Source: Florida Department of Education, Profiles of Florida School Districts, 1997-98 through 2001-02. The district expended $226.8 million (general fund only) during the 2001-2002 fiscal year. It receives revenues from federal, state and local sources. Most of the revenue received from the state is generated through the Florida Education Finance Program (FEFP). The FEFP takes into consideration a number of factors in distributing funding to Florida s 67 school districts, such as varying local property tax bases, education program costs, costs of living and costs for equivalent programs due to the sparsity and dispersion of the student population. This funding source, established by the Legislature, annually prescribes state revenues for education as well as the level of ad valorem taxes (property taxes) that can be levied by each school district in the state. It also includes some restricted funding provided through categorical programs, through which the Legislature funds specific programs such as instructional materials or student transportation. Exhibit 1-5 describes the district s revenue, expenditures and fund balances for the 2001-02 fiscal year. 1-4 Gibson Consulting Group, Inc.

Exhibit 1-5 District Funds Include Federal, State and Local Sources and Expenditures and are Primarily Related to Instruction Revenues and Expenditures Revenues Total Federal Direct 1,362,472 Federal Through State 75,633 State 39,916,505 Local 172,494,841 Total Revenues 213,849,451 Expenditures Instruction 139,980,366 Pupil Personnel Services 10,467,270 Instructional Media Services 3,310,350 Instruction and Curriculum Development Services 6,630,388 Instructional Staff Training 2,381,728 Board of Education 1,349,431 General Administration 1,678,002 School Administration 16,525,107 Facilities Acquisition and Construction 875,886 Fiscal Services 1,174,231 Food Services -- Central Services 5,287,653 Pupil Transportation Services 11,719,106 Operation of Plant 17,242,762 Maintenance of Plant 2,626,664 Community Services 109,759 Fixed Capital Outlay: Facilities Acquisition and Construction 47,829 Other Capital Outlay 5,201,788 Debt Service: Principal -- Interest and Fiscal Charges -- Total Expenditures 226,608,320 Deficiency of Revenue Under Expenditures (12,758,869) Other Financing Sources(Uses): Proceeds from the sale of capital assets 16,193 Loss Recoveries 233,524 Transfers In 10,000,000 Transfers Out -- Total financing sources (uses) 10,249,717 Fund Balance-beginning 8,831,414 Fund Balances, ending (June 30, 2002) 6,322,262 Source: Collier County School District Financial Statements, audited, for Fiscal Year Ended June 30, 2002. Gibson Consulting Group, Inc. 1-5

As Exhibit 1-6 illustrates, the district falls below the state average and all but one peer in all staffing ratios except guidance to students, where the district has the lowest ratio. Exhibit 1-7 illustrates the actual numbers of administrators, instructional personnel and support positions in the district. Exhibit 1-6 Staffing Ratios Fall Below for All Comparisons Administrators to Classroom Teachers Administrators to Total Instructional Staff Staff Ratios Administrators to Total Staff Classroom Teachers to Students 1 Teacher Aides to Classroom Teachers Guidance to Students District Lake 1: 17.29 1: 18.93 1: 28.09 1: 14.58 1: 77.82 1: 418.07 Lee 1: 13.14 1: 14.60 1: 27.19 1: 19.38 1: 4.78 1: 549.11 Manatee 1: 11.25 1: 12.56 1: 24.39 1: 17.55 1: 3.35 1: 449.49 Osceola 1: 15.76 1: 18.61 1: 36.83 1: 21.59 1: 2.80 1: 532.66 Pasco 1: 13.59 1: 15.30 1: 29.83 1: 17.44 1: 4.33 1: 416.34 Collier 1: 11.28 1: 12.94 1: 24.92 1: 17.06 1: 2.89 1: 320.20 State 1: 14.52 1: 16.26 1: 29.49 1: 18.01 1: 4.42 1: 452.03 1 This is not the same as average classroom size. This ratio is calculated by Department of Education by numbers reported through the EE0-5 survey of salaries in districts. The classroom teacher ratio includes all staff paid under the instructional salary schedule and some of these positions may actually be administrative positions. The OPPAGA team is trying to produce more appropriate ratios at the time of this draft. Source: Florida Department of Education, Statistical Brief: Staff in Florida s Public Schools Fall 2002, January 2003. Exhibit 1-7 Collier County School District Employed 3,338 Staff in Year 2001-02 Full-Time Employees Number Percentage Administrators 198 4.0% Instructional 2,562 51.9% Support 2,175 44.1% Total 4,935 100.0% Source: Florida Department of Education, Statistical Brief: Staff in Florida s Public Schools Fall 2002, January 2003. The district faces a number of distinct challenges in meeting its primary goal of providing a quality, costeffective education to the students living in Collier County. For example: four out of five school board members were newly elected in November 2002; there has been considerable controversy surrounding the superintendent position for the past five years with three superintendent searches, two of them unsuccessful; a new superintendent took office in May 2003; the district is managing a significant construction program in response to a steady growth in enrollment that is expected to continue in the future; there is a high percentage of migrant students; and the district has an economically diverse community with the outlying areas representing the more economically disadvantaged students in the district. Many of these challenges, as well as innovative ways the district has found to address them, are discussed in further detail throughout this report. 1-6 Gibson Consulting Group, Inc.