BUDGET WORK SESSION

Mr. Bob SpencerMr. Patrick WoodsMay 16, 2017

Draft

Topics for Discussion

• Fiscal Year 2017 (FY17) Budget Update

• Fiscal Year 2018 (FY18) Florida Education Finance Program (FEFP)

• Fiscal Year 2018 (FY18) Current Projections of Savings and New Costs

• Five Year General Fund Budget Plan

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FISCAL YEAR 2017 BUDGET UPDATE

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Fiscal Year (FY) 2017 Updates

• Continued budget/spending reductions• Good News

• Several expenditures came in lower than forecasted (i.e. fuel, electric)

• This year is expected to end without a deficit• There will be no use of the reserve for budget

shortfall

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District Budget Reductions $56 Million Over the Past Six Years

$15,000,000

$10,000,000$13,000,000

$7,000,000$9,000,000

$2,000,000

-

5,000,000

10,000,000

15,000,000

20,000,000

2011 for FY2012

2012 for FY2013

2013 for FY2014

2014 for FY2015

2015 for FY2016

2016 for FY2017

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Debt Service

• Includes Certificates of Participation and State Bonds • Bonds are no longer callable

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Long Term Debt at Year End, Principal Only (in Millions)

294.8

262.1

228

201.8

173

137.4

104.6

70.8

36

00

50

100

150

200

250

300

350

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Projected Budget Remaining Unspent FY17Additional Taxes $1,250,000

Fuel 200,000

Salaries and Benefits 1,000,000

Utilities 50,000

Electricity 600,000

Total $4,400,000

Department Budgets 950,000

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McKay and Miscellaneous Allocations 350,000

Subtotal available FY17 unspent funds $4,400,000

Maintain Contingency and Strategic Reserves for Projected FY18 Revenue at 5% Per Strategic Plan (750,000)

Total $3,475,000

Replenish Reserves

Restore Full Time Equivalent (FTE) Shortfall/Proration reserve (175,000)

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Projected Budget Shortfall Reserve Balance

Remaining Reserve for Budget Shortfall Projected at September Budget Hearing (Start of Current Year)

$40,830,448

FY17 Unspent, Added Back to Reserve for Budget Shortfall at End of Current Year 3,475,000

Projected Reserve for Budget Shortfall at June 30, 2017 $44,305,448

Reserve for Budget Shortfall from Prior Year End $40,830,448Planned Use of Reserve in Current Year (Deficit) (0)

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Fiscal Year 2018Florida Education Finance Program (FEFP)

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FY18 FEFP Funding$362 More per Student than in FY08 or $749 Less once Adjusted for Inflation

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This line shows the FY08 per student amount adjusted for inflation.

$749 less per student

$8,030

$7,674 $7,761

$7,798

$7,297 $7,185

$7,558 $7,709

$8,016

$8,230 $8,391

$8,030 $7,915

$7,999

$8,283 $8,421

$8,569 $8,747 $8,757 $8,845

$8,947

$9,140

$7,000

$7,500

$8,000

$8,500

$9,000

$9,500

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Actual FEFP Funds Per Student FY 2008 Funding Adjusted for Inflation

Florida Education Finance Program Trends

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Change in Funds per Unweighted Student FTE

0.65%

5.38%

2.56%

4.08%

2.07%

3.30%

2.41%

6.34%

2.61%

3.00%

1.00%1.20%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

PERC

ENTA

GE

DIFF

EREN

CE

FISCAL YEARCollier State

Student (FTE) 45,926 46,529

OPERATING FUNDING FEFP FORMULA

CURRENT YEAR(2016-2017)

LEGISLATURE(2017-2018)

Projected Increase in FTE 603

FY18 Total FEFP Revenue State and Local $390,439,004

Remove New Student Growth Funds603 FTE at $8,391 per FTE (5,059,773)

Funding Increase $7,430,533

Less: FY17 Total FEFP Revenue State and Local (377,948,698)

Increase in Total FEFP Revenue State and Local $12,490,306

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Florida Education Finance Program Funding

Other Categorical/Restricted Use Funds (170,227)

Subtotal $7,260,306

Projected Net Funding Change Between FY17 and FY18 $7,430,533

Adjustments for Restricted Funds

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Florida Education Finance Program Funding

Charter School Portion of New Revenue (377,996)

Available Balance $6,882,310

Osceola Agreement Ends

• The District was fortunate to be part of a tri-party agreement between the Osceola School District, the State of Florida and Collier School District. It allowed Osceola to use bondable dollars provided by the state earmarked for Collier School District in exchange for paying back Collier County with unrestricted funding in the amount of $2.8 million per year for 15 years ending in 2017. This revenue is no longer available to the District for the New Year 2017-2018.

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Adjustments to revenue

Osceola Agreement (2,811,853)

Increase in reimbursement from Food Service (Electricity and Trash) 58,000

Reduction in Indirect Cost Rate (60,000)

Total Available Balance $4,068,457

Available Balance $6,882,310

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Opening of New Charter School ($2,769,106)

Contracted Services Increase (Price level index) (572,270)

Neglected and Delinquent Grant (50,000)

Electricity (Maintain Current Budget) 0

Total Increased Costs ($5,446,376)

New Teacher Academy (855,000)

FY18 Current Projections of Increased Costs

Increase in Florida Retirement System (FRS) Rate (1,000,000)

Annualize Guest Teacher Pay (prior year increase) (200,000)

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Good News: Savings

Total Preliminary Budget Reductions FY18 $2,703,000

District Departmental Budget Decreases $1,680,000

Staffing Formula Efficiencies 642,000

Industry Certification Funding Shift 50,000

District Re-Organization 181,000

Miscellaneous Funding Shifts 150,000

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FY18 Increased Costs (Slide #17) (5,446,376)

Total Available Revenue (Slide #16) $4,068,457

Total Available Resources $1,325,081

Where Does that Leave Us?

FY18 Cost Savings (Slide #18) 2,703,000

Potential Salary Increase all Staff ????????

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Multi-Year Look at Reserve for Budget Shortfall

Projected Reserve for Budget Shortfall for FY17 $44,305,44820

0

10

20

30

40

50

60

70

FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17Forecasted

FY 18Forecasted

$65.2

$53.7

$45.7 $39.9

$35.3

$40.8 $44.3????

Five Year General Fund Budget Plan

• Formalizes the Planning Process• Provides Five Year Projections• Starts with Necessary Assumptions• Adjusts Revenue for Student FTE Growth Projections• Projects Future Costs

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Five Year Budget Assumptions• FY 2017 Revenues and Appropriations are adjusted to reflect changes

discussed in today’s Budget Work Session

• Voluntary Pre-Kindergarten revenues and appropriations remain constant over the five years

• Osceola School District Tri-party Agreement revenue is eliminated starting in FY 2018 ($2.8 million reduction)

• Capital Transfers are in alignment with the proposed Five Year Capital Plan

• FY 2017 Charter School Student FTE is increased based on current projections

• FY 2018 Charter School Student FTE is adjusted to reflect one new charter school opening (Projected FTE of 660)

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Five Year Budget Assumptions – Years 2-5

• Per Student funding remains constant at FY 2017 amounts

• While remaining constant on a per student basis, funding increases to reflect the change in forecasted Student FTE

• Base Salary Amounts do not change

• Position Growth reflects additional funding for new students

• Health Insurance costs remain constant

• Diesel/Unleaded Fuel Costs increase 3% each year

• Electricity and other Utilities increase 3% each year

• Contracted Services increase 3% each year

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Five Year Budget Outlook Revenue

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Five Year Budget Outlook Expenses

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Collier County School Taxes

4,448 new students

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$562 less per student

Consolidated Planning

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Consolidated Planning

• Objective: Leverage the District’s general and special revenue funds and human capital to support student achievement and development

• This objective shall be achieved through collaboration and cooperation among district departments and schools

• Strategic Plan KPI 6.3 – enhance alignment of financial resources to support District academic goals

• AdvancED (Resources and Support Systems) – the system has resources and provides services in all schools that support its purpose and direction

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Consolidated Planning

• Budget/Spending Reductions – maintain student programs and stable workforce

• Staffing Formulae – review and revise, as needed, current staffing formulae to ensure that staff allocations are allocated in a fair, equitable, differentiated and fiscally responsible manner

• Resource utilization • Revenue generating ideas

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Consolidated Planning

• Teacher Recruitment and Retention• Professional Learning – embedded and additional

time• Peer Collaborative Teacher• New Principal Supports• Immokalee Area Recruitment and Retention• Start as a pilot program in Immokalee or for all

schools meeting specific criteria

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Budget/Spending Reductions

• $56,000,000 in reductions the last 6 years• Reduced central office staff

allocations/personnel 12% since 2007-08• Preserved student programs and maintained a

stable workforce while other Districts have reduced or eliminated art, music, physical education and reading positions

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Budget/Spending Reductions

• Budgets – School and District $17,650,000• Staff Allocations – School and District $12,800,000• Class Size Reduction $ 9,100,000• Funding Shifts $ 6,600,000• Health Insurance $ 3,850,000• Electricity $ 3,000,000

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Budget/Spending Reductions

• It is becoming increasingly difficult to find additional spending reductions that yield the same level of savings from prior years without impacting student programs and services

• Transition from budget/spending reductions to controlling costs, cost avoidance and maximizing resources

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Cost Avoidance

• Class Size Reduction• FOCUS Student Information System• Capital Improvement Projects• Resource utilization• Staffing Formulae reviews• Collier Online Virtual Education (COVE)• Florida Education Finance Program (FEFP) Audit

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Staffing Formulae

• Objective: Review and revise, as needed, current staffing formulae to ensure that staff allocations are allocated in a fair, equitable, differentiated and fiscally responsible manner

• Differentiated support factors• Florida Virtual School (FLVS)• Academic Performance

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Resource Utilization

• Maximizing resources• Phase I – District spending reductions and

vacant positions (current and anticipated)• Phase 2 – District organization reviews• Grant applications/awards

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Resource Utilization

• Pooling/Leveraging Resources (Operating, Grants, Workforce)

• Federal Grant Reviews - percent allocated to schools, surplus/deficit, roll forward, new grants

• Recruitment and Retention

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Federal Funding – Top 5

• Title I Basic $11,675,377• Exceptional Student Education* $ 9,362,481• Title I Migrant $ 4,410,783• Head Start Main Grant $ 3,669,914• Title II Teacher Training $ 1,173,883• Total $ 30,292,438

*Individuals with Disabilities Education Act

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Revenue Generating Ideas

• Advertising and naming rights• Lease fees• Solar

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AdvancEDSTANDARD 4 RESOURCES AND SUPPORT SYSTEMS -

RESOURCE UTILIZATION

“Collier County Public Schools demonstrates outstanding resource management and makes

wise and effective use of public and private funds to address the learning and development

needs of children.”

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BUDGET WORK SESSION

Mr. Bob SpencerMr. Patrick WoodsMay 17, 2016

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