1. Office of Administration and Support Division of Budgets and Financial Management 1

2. FY15FY16 General ( SEEK & Other )*$4,014,727,500$4,093,244,600 Federal$887,847,800$888,387,200 Restricted$32,777,300$33,909,800 Total$4,935,352,600$5,015,541,600 2 *includes $8.6 million necessary government expense in SEEK

3. Budget Summary House Bill 235 and 510 Enacted FY15FY16 SEEK per pupil amount$3,911$3,981 SEEK2,980,902,6003,009,490,600 KDE Operations24,163,70024,780,000 Flex Focus123,237,800154,629,900 Grant Programs196,093,400200,073,200 Health/Life Insurance674,146,600687,599,900 KSB/KSD16,183,30016,488,000 Total KDE General Funds4,014,727,5004,093,244,600 Restricted Funds32,777,30033,909,800 Federal Funds887,847,800888,387,200 TOTAL KDE FUNDS4,935,352,6005,015,541,600 3

4. Flexible Focus House Bill 235 Enacted FY15FY16 FLEXIBLE FOCUS FUNDS Extended School Services19,105,90025,510,700 Preschool71,315,30090,113,200 Professional/Staff Development8,848,80011,927,700 Safe Schools7,267,80010,378,300 Textbooks (K-8) 16,700,000 TOTAL FLEXIBLE FOCUS FUNDS123,237,800154,629,900 4

5. FY15 196,093,400 FY16 200,073,200 This total includes numerous programs, including:  Community Education  Family/Youth Services (FRYSCs)  Gifted and Talented  Math Achievement  Read to Achieve 5

6.  Per HB235, districts may utilize Flex Focus funds for general operating expenses. The Kentucky Department of Education (KDE) has established project 15FX in MUNIS for districts to move the funds into. Districts exercising this flexibility shall report to the KDE and the Interim Joint Committee on Education (IJCE) on an annual basis the amount of funds transferred. 6

7.  Once the need to transfer funds has been established at the district level (no prior KDE approval is necessary), the transaction will be entered into MUNIS as follows: EXAMPLE: District has $10,000 in FY15 Safe Schools 168A and wishes to transfer $5,000 to use for general operating. A budget amendment and journal entry would be made in MUNIS as: INCREASE 15FA by $5,000 using 220-5210-15FA (fund transfers in) DECREASE 168A by $5,000 using 0002113-0910-168A (fund transfers out)  Districts must budget these general operating funds into the appropriate object series/codes it will be expended from. EXAMPLE: $5,000 transferred into 15FA will be spent on supplies. District would use MUNIS 0600 series.  Districts would submit this project (15FA) in their quarterly CDIP submission. This will allow KDE to create a summary report to submit to the IJCE annually. 7

8. 8 Transferability FAQ’s Which programs may I transfer funds from? Extended School Services – 120X Professional Development – 140X Instructional Resources – 160X Safe Schools – 168X When may I transfer funds and how many transfers may I make? There are no statutory limitations on the number of times a district may transfer funds into, or from, an individual program during a fiscal year. However, the KDE requests that transfers are made after thorough planning and prior to December 31 of the grant year. Will there be a funding matrix for project 15FX? Yes, a funding matrix will be available, however, since the district may use the funds for general operating expenses, all org/object combinations will be allowable. Will I need to submit a report to the Legislative Research Commission ICJE as well? No, KDE will provide a summary report to the IJCE.

9.  General Questions and Inquiries: Karen Wirth – Division of Budgets and Financial Management karen.wirth@education.ky.gov  Flexible Focus Questions: Nicole Crosthwaite – Budget Branch nicole.Crosthwaite@education.ky.gov 9

10. Questions? 10