Appropriations total $444.16 million dollars, which is an increase of 7.0% above last year’s actual expenditures. Eighty-three percent of
This fund provides for the day-to-day operations of the District and is used to account for all financial resources except those that must be accounted for in another fund. Local ad valorem taxes, Florida Education Finance Program (FEFP) and state categorical programs constitute the primary revenue sources of the General Fund.
Debt Service Funds
These funds are used to account for the accumulation of resources for the payment of principal and interest on general long-term debt. Major sources of revenue for these funds include the non-voted capital outlay millage levy, State Board of Education revenue, impact fees and the one-half cent sales tax revenue.
The Debt Service budget for 2010-2011 is $70.87 million.
Debt instruments are issued to finance new school construction, renovate existing facilities, as well as facilitate major purchases such as computers and phone systems. In addition, the District is continually reviewing opportunities to reduce existing debt service by restructuring or refinancing existing obligations.
There are currently three (3) Capital Outlay and Debt Service (CO&DS) bonds outstanding. One closed in 2009-2010. There are no Certificates of Participation scheduled in 2010-2011.
In 2009-2010 the COPs issue being held in escrow refunded for a lower interest rate. The remaining restricted fund balances are for the Sales Tax Bonds payments that are required early in the fiscal year before collections have accumulated.
University High School
Debt Service Actuals Budget Increase /
Revenue (in millions) 2009-2010 2010-2011 (Decrease) State Sources $ 1.96 $ 1.98 $ 0.02
Local Sources 0.02 - (0.02) Transfers from Capital Fund 51.65 51.60 (0.05) Proceeds of Refunding Bonds 1.52 - (1.52) Restricted Fund Balances 65.53 17.29 (48.24) Total $ 120.68 $ 70.87 $ (49.81)
Executive Summary
Debt Service Actuals Budget Increase /
Expenditures (in millions) 2009-2010 2010-2011 (Decrease) Redemption of Principal $ 28.89 $ 30.11 $ 1.22 Interest 24.34 23.05 (1.29) Dues and Fees 0.04 - (0.04) Payment to Refund Bond Excrow 50.12 - (50.12) Restricted Fund Balances 17.29 17.71 0.42 Total $ 120.68 $ 70.87 $ (49.81)
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Budgets for 2010-2011 are comprised of facilities projects for buildings and fixed equipment $46.79 million, remodeling and renovations $19.18 million, along with furniture fixtures and equipment $23.52 million, are the largest portion of the capital outlay budget. Site improvements are budgeted for $1.91 million and no new land purchases are scheduled.
The restricted fund balance $47.35 million and the assigned fund balance (sale of property proceeds)
$2.11 million includes projects in progress and funds for contingencies and reserves. The projects in progress portion of the Restricted Fund Balances are listed in detail in the Capital Project Details portion of the Informational Section.
Special Revenue - Food Service School Way Cafe, the food service program for the school district, provides meal service to students through the National School Lunch Program, the School Breakfast Program, the Federal After School Snack Program and the Summer Food Program. Additionally, an extensive a la carte program is available in secondary schools. The budget for the 2010-2011 school year is $31.38 million, an increase of $1.65 million over the previous year’s actual expenditures. None of the School Way Cafe budget is derived from local tax dollars.
The School Way Cafe program serves more than 34,000 lunches and 11,000 breakfasts daily, in addition to more than $3.5 million in a la carte and other sales annually. Currently, lunch prices are at $1.75 in elementary schools and $2.00 in the secondary schools.
Breakfast is $1.00 for all students. Free or reduced price meals are provided to students whose families meet the federal income guidelines.
Food Service Fund Actuals Budget Increase/
Expenditures (in millions) 2009-2010 2010-2011 Decrease Salaries $ 7.50 $ 7.80 $ 0.30 Benefits 4.51 4.81 0.30 Purchased Services 0.85 1.35 0.50 Energy Services 0.09 0.10 0.01 Materials and Supplies 8.75 9.53 0.78 Capital Outlay 0.14 0.63 0.49 Other 0.72 0.74 0.02 Reserve for Inventory 1.78 1.77 (0.01) Ending Fund Balances 5.39 4.65 (0.74)
Executive Summary
Food Service Fund Actuals Budget Increase/
Revenues (in millions) 2009-2010 2010-2011 (Decrease) Federal Through State $ 16.91 $ 16.72 $ (0.19) State Supplements 0.35 0.35 -Local Sources 7.35 7.15 (0.20) Tranfers In - - -Reserve for Inventory 1.77 1.77 -Beginning Fund Balances 3.35 5.39 2.04
Total 29.73$ $ 31.38 $ 1.65
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($14.1 million), and the Teacher and Principal Training and Recruiting – Title II, Part A, No Child Left Behind (NCLB) ($3.6 million).
Title I is a federally funded program designed to ensure that all children have a fair, equal, and significant opportunity to obtain an education of the highest quality and reach, at minimum, proficiency on challenging state achievement that is part of the No Child Left Behind Act (NCLB). The purpose of these funds is to increase student academic achievement through strategies such as improving the quality of teachers and principals, increasing the number of highly qualified teachers and principals, and to hold local educational agencies and schools accountable for improvements in student academic achievement.
The district has received a grant from the United States Department of Education for Teaching American History with a budget of $0.58 million. This program is designed to raise student achievement by improving teachers knowledge and understanding of and appreciation for traditional United States history. By helping teachers to develop a deeper understanding and appreciation of United States history as a separate subject matter within the core curriculum, these programs will improve instruction and raise student achievement.
Special Revenue - Other Actuals Budget Increase/
Revenues (in millions) 2009-2010 2010-2011 (Decrease) Federal Direct $ 0.33 $ 0.58 $ 0.25 Federal Through State 39.23 44.33 5.10 Total Revenues $ 39.56 $ 44.91 $ 5.35
Special Revenue - Other Actuals Budget Increase/
Expenditures (in millions) 2009-2010 2010-2011 (Decrease)
Special Revenue - American Recovery and Reinvestment Act (ARRA)
appropriation that the U. S. Department of Education awarded to Governors to help stabilize State and Local budgets in order to minimize and avoid reductions in education and other essential services, in exchange for a State’s commitment to advance essential education reform in four areas:
(1) making improvements in teacher effectiveness and in the equitable distribution of qualified teachers for all students, particularly students who are most in need;
(2) establishing pre-K-to-college-and-career data systems that track progress and foster continuous improvement;
(3) making progress toward rigorous college- and career-ready standards and high-quality assessments that are valid and reliable for all students, including limited English proficient students and students with disabilities;
(4) providing targeted, intensive support and effective interventions for the lowest-performing schools.
The Stimulus program appropriated new funding for the Individuals with Disabilities Education Act (IDEA) and Title I programs to help ensure that children with disabilities and students in poverty situations have equal opportunity for public education. There are other Stimulus allocations such as Homeless Children and Youth, Enhancing Education Through Technology and the Equipment Assistance for School Way Cafe. The Stimulus funding is being provided for two years.
The overall goal of the American
Special Revenue - ARRA Actuals Budget Increase/
Revenues (in millions) 2009-2010 2010-2011 (Decrease) Federal Direct $ - $ - $ -Federal Through State 37.90 35.32 (2.58) Total Revenues $ 37.90 $ 35.32 $ (2.58)
Special Revenue - ARRA Actuals Budget Increase/
Expenditures (in millions) 2009-2010 2010-2011 (Decrease)
The Internal Service funds are used to account for and finance uninsured risks of loss for workers’
compensation, property insurance, general liability and fleet insurance. One hundred percent of the revenues for these funds are provided from other district funds.
Internal Service Funds
The Internal Service budget for the 2010-2011 school year is $14.42 million, an increase of $0.91 million, or 6.74%, over the previous year’s actual expenditures.
Internal Service Actuals Budget Increase/
Revenues (in millions) 2009-2010 2010-2011 (Decrease) Operating Revenues $ 5.57 $ 6.06 $ 0.49 Transfers In - - -Non-Revenue Sources 0.02 - (0.02) Beginning Fund Balances 7.92 8.36 0.44
Total Revenues $ 13.51 $ 14.42 $ 0.91
Internal Service Actuals Budget Increase/
Expenditures (in millions) 2009-2010 2010-2011 (Decrease) Salaries $ 0.06 $ 0.15 $ 0.09 Benefits 0.38 0.43 0.05 Purchased Services 3.79 4.15 0.36 Material & Supplies - - -Other Expenses 0.92 1.33 0.41 Ending Fund Balances 8.36 8.36
-Total Expenditures $ 13.51 $ 14.42 $ 0.91
Executive Summary
General Fund Budget Forecast
A three-year budget forecast has been prepared for all governmental funds (see details in the Informational Section). The assumptions are based on historical trends and knowledge of current educational initiatives at the legislative level such as meeting the requirements of the Class Size Reduction Amendment. A major factor making revenue projections difficult is the end to the ARRA Stabilization allocation in 2010-2011. Also, the additional 0.25 critical needs millage will require the voters to agree to continue the extra quarter mill for 2011-2012. Revenues are projected to decrease approximately 1% over this three-year period due to declining student enrollment. Many of the costs such as additional teaching staff, health insurance, retirement rate and utility costs will see much higher increases.
Capital Fund Budget Forecast
Due to the continuing economic down turn and declining student enrollment, the budget and three-year forecast for capital expenditures are being curtailed. Priority is given to existing schools to maintain a safe and productive space for the students and staff. Technology will continue to be emphasized to allow the students the opportunity to function at the highest level.
The full picture of the capital budget can be seen in the five-year plan in the Informational Section. The Capital Outlay Five-Year Budget Plan is built around the Facilities Five-Year Work Program. The first year of the five-year plan is the budget for the next year and the remaining four years are fiscal forecasts of revenues necessary to accomplish the facilities work program. The Public School Capital Outlay Program Act of 1997 requires that the school district prepare a Five-Year District Facilities Work Program
Capital Fund Budget For ecast For ecast For ecast Expenditur es (in millions) 2010-2011 2011-2012 2012-2013 2013-2014 New Construction $ - $ - $ - $ -Projects at Existing Schools 11.35 7.40 7.30 6.95 Facilities Management 1.81 1.00 1.00 1.00 Technology 6.00 6.00 6.00 6.00 System W ide Equipment 1.30 1.30 1.30 1.30 Buses - - - 4.78 Total $ 20.46 $ 15.70 $ 15.60 $ 20.03
General Fund Budget Forecast Forecast Forecast Expenditures (in millions) 2010-2011 2011-2012 2012-2013 2013-2014 Salaries $ 274.23 $ 264.89 $ 253.58 $ 250.25 Benefits 93.58 95.57 95.51 97.05 Purchased Services 33.04 33.37 33.20 34.85 Energy Services 17.04 17.97 18.96 19.96 Material & Supplies 19.51 15.50 13.15 12.87 Capital Project 0.91 0.74 0.85 0.65 Other Expenditures 5.85 6.66 7.00 7.33 Total $ 444.16 $ 434.70 $ 422.25 $ 422.96
Executive Summary
The Facilities Work Program and the Capital Outlay Five-Year Budget Plan provide the School Board and the public a detailed plan of the capital outlay revenues and the intended use of those revenues.
The Five-Year Budget Plan will utilize $694.9 million in new estimated capital revenues, and balances over the five-year period ending June 30, 2015. No additional borrowing is planned during this period.
The district is experiencing a continued decline in student enrollment and the economic down turn appears to be lingering. Thus, new school construction projects will be deferred until these two areas of concern improve. The priority will be on renovations, repairs and some additions to eliminate the use of portable classrooms.
The largest part of the available resources will go for debt service payment on construction completed in the past. Over $258 million is scheduled for principal and interest payments over this five-year period.
As the district’s schools age, it is imperative that proper renovations, repairs, along with appropriate remodeling to accommodate current programs, be kept up to date to insure buildings function for their useful life. The Five-Year Fiscal Plan provides $39.9 million for these types of projects.
In addition, the district is committed to improving its technology capabilities by providing up-to-date equipment for the students and staff to prepare them for the future and make them more productive.
This plan calls for $30 million to be spent on technology over this five years and an additional $6.5 million for replacing maintenance and warehouse vehicles, and equipment throughout the district on a reasonable replacement cycle. School bus replacement will use $9.8 million. This Five-Year Plan has scaled facilities management back to $5.8 million, which will be spread to the various capital projects that are handled by the Facilities Department.
The second largest appropriation is for general maintenance, liability insurance on the district buildings and rental of copying equipment. During the Five-Year Plan, this $96 million will be transferred to the general fund and the expenditures are recorded there for accounting reasons. As the graph below shows, the district still has thirty-nine percent of its buildings over 30 years old. Many of these older schools have had extensive renovations done to them but the core building still needs proper maintenance to remain functional until they can be replaced.
24%
18%
19%
39%
A ge o f S cho o l B uildings
0 - 10 11 - 20 21 - 30 31 - +
Ye a rs O ld
Executive Summary
Revenue and Expenditure Trends
Over the past five years, expenditures have exceeded revenues due to declining enrollment, teachers added to meet the class size amendment, increases in salaries, health insurance, terminal leave, and utility costs. Significant state revenue shortfalls have resulted in a need to reduce many services and programs.
Almost all position categories have decreased with some of the major reductions in classroom teachers, ESE Paraprofessionals, Kindergarten Paraprofessionals, clerical staff, Media Specialist, Guidance Councelors, Campus Advisors, Principals, Assistant Principals and custodial staff. Non-salary budgets for some instructional programs were reduced or eliminated. Examples of these include Academic Excellence, Effective Schools, Family & Support Partnership, General Curriculum-Staff Development, High School Showcase and Vocational Equipment Repair. These reductions have allowed salary increases of 20.3% over this 5-year period with the goal of increasing teacher salaries to the national average.
During the same timeframe, inflation increased over 7.42%, student growth reduced by 6.2% and per pupil spending increased 2.81%.
Executive Summary
$-$100
$200
$300
$400
$500
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
457 476
441 419 403
484 491
453 415 444
Revenue vs. Ex penditure (in m illions)
Revenue E x penditures
‐10.00%
‐5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Inflation Salaries Per Pupil Costs
Students Positions Five Year Trend
(% Change)
Tax Base and Rate Trend
The proposed millage rate is 8.237 mills. The 6.737 mills operating budget portion of the millage includes the required local effort of 5.698 mills set by the State in order for local districts to participate in the Florida Education Finance Program (FEFP). Also included are the discretionary millage (0.748 mills), which includes 0.25 mills that can be used flexibly either in capital or general fund. The additional discretionary millage was rolled into the Required Local Effort millage in 2009-2010. A new critical needs millage (0.25 mills), requiring a super majority vote by the School Board, was levied for operating purposes to continue this millage for 2011-2012 the voters must approve it by a sixty percent majority on the November 2, 2010 ballot.
No additional millage is required on the sinking fund for debt service on General Obligation Bonds (GOBs). Also, no additional GOBs are planned at the present time. The last GOBs that were approved in 1986 were refunded twice to save the taxpayers interest expense. The last refunding on the GOBs was done in 2001 and the public realized a savings of approximately $2.6 million in interest cost over the balance of the bonds. This GOB issue was paid in full in fiscal year 2006-2007.
Executive Summary
Salary Inflation
2005-2006 6.00% 4.32%
2006-2007 7.50% 2.69%
2007-2008 5.00% 5.02%
2008-2009 0.00% -1.43%
2009-2010 1.79% -1.05%
Salary Increases vs. Inflation
Inflation Trends
Inflation impacts an individual’s budget for goods and services such as food, clothing, appliances, medical care and utilities. Inflation has the same effect on the school district budget as it does on household budgets but on a much larger scale. It increases the cost of books, paper, utilities, and maintenance and repair costs. During the past five years, inflation has averaged more than 1.91% annually
2009
Taxpayer Type of Business Taxable Value
Florida Power and Light Co. Electric Utility $872,219,649
Florida Power Corporation Electric Utility 211,012,983
BellSouth Telecommunication, Inc. Telephone 145,975,105
Tower II Development Co., LLC Real Estate Development 92,103,126
Wal Mart Stores, Inc. Retail Sales 90,322,716
Top Five Principal Property Taxpayers
Student Demographic Trends
Changes in student demographics from September, 2009 to September, 2010 are highlighted by a decrease in the number of students that are White (-3.08%), Black (-0.62%), Mixed (-16.27%), and Asian (-1.47%), and an increase in the number of students that are American Indian (49.22%), Pacific Islander (263.64%), and Hispanic (8.85%). Approximately 38.0% of the district’s students are minority members.
Between school years 2008-2009 and 2009-2010, students with disabilities decreased by 2.31% and students receiving services for English for Speakers of Other Languages (ESOL) increased by 7.55%.
Student Enrollment Trends
Volusia County Schools experienced a decline of 621 students during the ten-year period of 2001-2002 through 2010-2011, or 1.0%. In 2001-2002, the growth rate was 1.71% followed by varied rates influenced by storms and the scholarship program. In most recent years, the growth rate has turned negative. For the 2010-2011 school year, the growth is -732 or -1.17%. It is important to remember that a historical cohort model is used in forecasting enrollment. As factors outside the model change, they will be picked up in the model the following year. Some of the variables that may affect the growth rate are as follows:
• Economy and Security (migration) and natural occurrences such as weather
• Corporate and McKay Scholarships (leaving or returning to public school)
• Enrollment in Home School/Non-Public School/Virtual School
Personnel Resource Allocations
As the largest employer in the county, Volusia County School District employs approximately 8,121 full and part-time employees, including approximately 4,500 teachers who are highly skilled professionals, with 44%
holding advanced degrees. Volusia’s teachers are among the nation’s finest with almost 330 Volusia County teachers earning National Board Certification.
Amounts shown are in full-time equivalents rather than head counts In the past five years, there have been many drastic changes in staffing:
• Although the formulas in grades K-3 and 4-5 were decreased to meet the requirements of the Class Size Reduction Amendment, there has been an overall decrease of 191.5 FTE teachers in the elementary schools due to declining enrollment
• Separated enrollments in the Basic program in middle and high schools to distinguish Core from Non-Core, to assist in meeting the requirements of the Class Size Reduction Amendment
• Although the formulas have decreased to meet the requirements of the Class Size Reduction Amendment, the allocation for middle school teachers has decreased by 72.2 FTE,
due to enrollment decline
• Although the formulas have decreased to meet the requirements of the Class Size Reduction Amendment, the allocation for high school teachers has decreased by 212.4 FTE, due to enrollment decline and because of the change in school schedules from 4 x 4 blocks to a 7-period day in seven of our ten high schools
• Eliminated kindergarten and reduced ESE paraprofessionals for a total of 327.5 FTE
• Due to the continued budget shortfall, there have been reductions of 12.0 media specialists, 40.8 guidance counselors, 25.0 campus advisors, 61.1 clerical staff, 9 principals and 22 assistant principals
• Custodial staff in the schools has decreased by 26.5 FTE as a result of the implementation of a more efficient grounds program
• Reduced Department positions by almost 26% (401.8 FTE)
Executive Summary
Budgeted Positions 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Elementary 3,514.2 3,305.8 3,012.1 3,111.5 3,139.3 Middle 1,520.5 1,492.7 1,401.1 1,384.8 1,347.9 High 2,093.5 2,063.4 1,759.1 1,715.8 1,749.5 Special Centers 356.4 385.0 332.8 139.5 129.9 School-wide 121.4 121.3 110.6 265.7 261.9 Department 1,597.4 1,590.7 1,416.6 1,318.4 1,195.6 Total 9,203.4 8,958.9 8,032.3 7,935.7 7,824.1
-12.00%
-8.00%
-4.00%
0.00%
4.00%
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Percent Change in Student Enrollment and Staffing Levels
Students School Positions Non-School Positions
Mr. Stan Schmidt
Mr. Schmidt earned his Bachelor’s degree from Drake University in Des Moines, Iowa, and works as a CPA at his Daytona Beach firm, Balaban & Schmidt. Mr. Schmidt has been extremely active as a representative of the Spruce Creek High School Advisory Committee, the District Advisory Committee and the Project Oversight Committee.
Mr. Schmidt represents District 3, southeast Volusia County including parts of the Port Orange area and the Edgewater, New Smyrna Beach, Oak Hill and Samsula areas.