SCHOOL DISTRICT OF LEE COUNTY

TENTATIVE BUDGET HEARING

JULY 29, 2010

SCHOOL DISTRICT OF LEE COUNTY

TENTATIVE BUDGET HEARING

JULY 29, 2010

2011 Tentative BudgetJuly 29, 2010

Agenda• Call to Order• Presentation

• Percent of Increase over Roll Back Rate• Proposed Millage• Budget Overview• Proposed Tentative Budget• Class Size Strategies

• Public Hearing on Proposed Millage Rates, Tentative Budget, and Class Size Strategies

• Adoption of Resolutions• Good of the Order• Adjourn

Roll-Back Rate• The millage rate

necessary to generate the same amount of money as raised the prior school year using the current year’s tax roll.

2010-2011Roll-Back Millage

ACTUAL ROLL PROPOSED2009-10 BACK 2010-2011

7.508 8.787 8.015

This represents a 8.79% percent decrease over the roll-back rate.

The Required Local Effort (RLE) roll-back rate represents an 6.32% decrease.

The RLE is required to participate in the Florida Education Finance Program, and is 72% of the total proposed millage.

Millage Comparison2008-2009

2009-2010

2010-2011

Difference

RLE 4.523 5.260 5.767 .507Disc. Mills

.498 .748 .748 .000

Add. Disc. Mills

.097 .000 .000 .000

Capital Mills

1.750 1.500 1.250 (.250)

Critical Op

.250 .250

Total Mills

6.868 7.508 8.015 .507

**Millage rates are Established for each schoolDistrict by the StateLegislature through the FEFP, and by state statute.

Millage Comparison

2002/03 2003/04 2004/05 2005/06 2006/2007

2007/2008

2008/2009

2009/2010

2010/2011

6.5

6.7

6.9

7.1

7.3

7.5

7.7

7.9

8.1

8.3

8.5

8.7 8.572

8.346

8.06500000000001

7.882

7.012 6.966.86799999999999

7.508

8.015

This year’s tax roll brings the District’s tax roll back to 2005 levels

Tax Roll History

2003 2004 2005 2006 2007 2008 2009 2010 20110

20,000,000,000

40,000,000,000

60,000,000,000

80,000,000,000

100,000,000,000

120,000,000,000

Effects on TaxpayersScenario Old Value New Value 7.508

Old Tax8.015

New TaxDifference

14% $100,000 $86,000 $563.10 $488.92 ($74.18)

14% $150,000 $129,000 $938.50 $833.56 (104.94)

5% $100,000 $95,000 $563.10 $561.05 ($2.05)

5% $150,000 $142,500 $938.50 $941.76 $3.26

3% $100,000 $103,000 $563.10 $625.17 $62.07

3% $150,000 $154,500 $938.50 $1,037.94 $99.44

Millages and AmountsTentative Millage

Amount to be Raised

Required Local Effort

5.767 $326,535,777

Basic Discretionary

.748 $ 42,352,829

Critical Operating

.250 $ 14,155,358

Capital Outlay 1.250 $ 70,776,786

Total 8.015 $453,820,750

Tentative Budget

FUND TYPE AMOUNTGeneral (Operating) $733,778,867Special Revenue - Food Service 41,581,151Special Revenue – Federal Grants 83,560,877 Debt Service 48,903,428Capital Projects 377,169,583Internal Services 110,678,483

TOTAL $1,395,672,389

Budget Facts

Each budget fund is earmarked for specific purposes:

• General-education of students and operating expenses of the district

• Debt service-payment of debt• Capital-used to build schools, buy

equipment, and provide maintenance services

Budget Facts

Each fund is earmarked for specific purposes:

• Food Service-supports the breakfast and lunch program for all students

• Special Revenue-federal funds that must be used for the specific purpose of the grant

• Internal Service-accounts for the insurance costs of the district

General Fund• Our major source of

revenue for the district’s daily operations

• Now budgeted at $733.8 million (53% of total budget)

• Supports approximately 81,000 students

FEFP Revenue

• Total FEFP Revenues are $572.4 million• $3.7 million increase over the prior year,

but a decrease in per pupil funding• Generates $7,088 per student• Base student allocation decrease of $7 per

student to $3,623.76• 14% decrease in the tax roll from last year

means 36% of FEFP dollars are state funded

Source of Operating Revenues

Federal0.40%

State32.47%

Local67.14%

Where It Goes

Instruction & Direct School Expenses

65%Student Transportation7%

Operations/Maint12%

Support Services3%

Contingency/Reserve11%

Other1%

Food Services

• Current budget is $41.6 million

• Budget includes breakfast for every child (at no cost to parents)

• No increase in lunch prices for 2011

Special Revenue• Includes Title I, IDEA,

and other federal grants

• Also includes all ARRA “stimulus” dollars

• Currently budgeted at $83.6 million

• Estimated to grow in the next few months

Capital Budget• Currently budgeted at $377.2 million• Large decrease to capital funds due to

decrease in tax roll (14%) and millage rate• Capital millage will be reduced by .25 to

accommodate need for critical operating millage

• Five year plan has three K-12 school and two adult facilities for next five years

• Maintenance/renovations/technology is the major focus

Budget Shortfall Fund• Budget shortfall fund this year will be used to

protect us from loss of stimulus funds• Will also be used to absorb prorations

throughout the year• Already suffered some revenue loss from first

calculation due to tax roll decline ($1.1 million)• Budget shortfall fund is currently $26,968,981

Class Size StrategiesPhase I• Elementary schools allocated at 18 and 22• Designated “growth” schools received

additional teachers to start class sizes low• Actively looking to hire retired teachers (at

suggestion of Foundation for Lee County Public Schools Board)

Class Size Strategies

Phase I• Secondary schools allocated teachers at .5

under cap• Secondary schools should work to:

• Schedule all certificated personnel (APs,Guid,Media)• Invite teachers to work extra period• May need to fill in with long term subs as co-teachers

Class Size Strategies

Phase II (if vote does not pass in November)• Will need to hire additional teachers at all

levels• May also need additional temporary

classroom space• Total cost of Phase II=$5 million• Reserve set aside in budget for phase II

implementation

Class Size Strategies

• Phase I has been implemented• Cost of $5 million• Phase II will be implemented at change in

semester if necessary at additional $5 million cost

Lee County Schools Budget• Supports 114 schools• An estimated 81,000 students• Supports the initiatives of the state and

strategic plan• Safety• Reading and Math initiatives• Access to accelerated programs• Intensive assistance to get every child on

grade level

Lee County Schools• One of only nine districts that have improved

every year for the past six years• More “A” schools than ever before• Graduation rate is the highest ever and dropout

rate is the lowest ever• Focused on continuous improvement• We still have much more work to do to reach

every child

AN “A” SCHOOL DISTRICT

Our VisionTO BE A WORLD CLASS SCHOOL SYSTEM

We respectfully submit this budget in support of our vision, our mission, the students and employees

of the Lee County School District, and the Citizens of Lee County.

Tonight’s Action1. Adopt all proposed millages for the 2010-

2011 tentative budget

2. Adopt the tentative budget for the 2010-2011 fiscal year

3. Adopt all resolutions related to the millages and budget

GOOD OF THE ORDERPRIOR TO PUBLIC MEETING

PUBLIC HEARING on TENTATIVE BUDGET AND CLASS SIZE STRATEGIES

Superintendent’s Recommendation

1. Recommend that the Lee County School Board adopt the 2010-2011 tentative proposed required local effort millage of 5.767 mills with a proposed amount to be raised of $326,535,777. The RLE millage includes basic RLE of 5.731, and a prior period adjustment millage of .036.

Superintendent’s Recommendation

2. Recommend that the Lee County School Board adopt the 2010-2011 tentative proposed basic discretionary millage of .748 mills with a proposed amount to be raised of $42,352,829.

Superintendent’s Recommendation

3. Recommend that the Lee County School Board adopt the 2010-2011 tentative proposed critical operating millage of .250 mills with a proposed amount to be raised of $14,155,358.

Superintendent’s Recommendation

4. Recommend that the Lee County School Board adopt the 2010-2011 tentative proposed capital outlay millage of 1.250 with a proposed amount to be raised of $70,776,786. The total millage will equal 8.015 mills with a total amount to be raised of $453,820,750. The total millage rate to be levied does not exceed the roll back rate. It is a decrease in the roll back rate of 8.79%.

Superintendent’s Recommendation

5. Recommend that the Lee County School Board adopt the Resolution Determining Revenues and Millages Levied and the Resolution Adopting the Tentative Millage Rates for the fiscal year 2010-2011.

Superintendent’s Recommendation

6. Recommend that the Lee County School Board adopt the tentative budget and related resolution adopting the tentative budget for the 2010-2011 school year as follows:

1. General Operating $733,778,8672. Special Revenue Budget $125,142,0283. Debt Service Budget $

48,903,4284. Capital Outlay Budget $377,169,5835. Internal Service Budget

$110,678,483Total Tentative Budget

$1,395,672,389

Superintendent’s Recommendation

7. Recommend that the Lee County School Board accept the 2010 Certification of Taxable Value for Lee County, Form 420S, and authorize the Superintendent to complete and execute the form.

Superintendent’s Recommendation

8. Recommend that the Lee County School Board schedule a public hearing on the final 2010-2011 millage levies, final budget, and class size strategies for the 2010-2011 school year for Tuesday, September 14, 2010, at a specially scheduled board meeting, to begin at 5:05 P.M. at the Lee County Public Education Center, Board Room.