1. SCHOOL DISTRICT OF LEE COUNTY TENTATIVE BUDGET HEARING JULY 29, 2010 SCHOOL DISTRICT OF LEE COUNTY TENTATIVE BUDGET HEARING JULY 29, 2010

2. 2011 Tentative Budget July 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

3. 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.

4. 2010-2011 Roll-Back Millage 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.

5. Millage Comparison 2008- 2009 2009- 2010 2010- 2011 Difference RLE 4.5235.2605.767.507 Disc. Mills.498.748.000 Add. Disc. Mills.097.000 Capital Mills 1.7501.500 1.250(.250) Critical Op.250 Total Mills 6.8687.508 8.015.507 **Millage rates are Established for each school District by the State Legislature through the FEFP, and by state statute.

6. Millage Comparison This year’s tax roll brings the District’s tax roll back to 2005 levels

7. Tax Roll History

8. Effects on Taxpayers ScenarioOld ValueNew Value7.508 Old Tax 8.015 New Tax Difference 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

9. Millages and Amounts Tentative 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 Outlay1.250$ 70,776,786 Total8.015$453,820,750

10. Tentative Budget FUND TYPE AMOUNT General (Operating)$733,778,867 Special Revenue - Food Service 41,581,151 Special Revenue – Federal Grants 83,560,877 Debt Service 48,903,428 Capital Projects 377,169,583 Internal Services 110,678,483 TOTAL$1,395,672,389

11. 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

12. 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

13. 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

14. 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

15. Source of Operating Revenues

16. Where It Goes

17. 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

18. 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

19. 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

20. 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

21. Class Size Strategies Phase 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)

22. 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

23. 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

24. 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

25. 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

26. 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

27. Our Vision TO 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.

28. Tonight’s Action 1.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

29. GOOD OF THE ORDER PRIOR TO PUBLIC MEETING

30. PUBLIC HEARING on TENTATIVE BUDGET AND CLASS SIZE STRATEGIES

31. 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.

32. 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.

33. 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.

34. 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%.

35. 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.

36. 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 $733,778,867 2. Special Revenue Budget $125,142,028 3. Debt Service Budget $ 48,903,428 4. Capital Outlay Budget $377,169,583 5. Internal Service Budget $110,678,483 Total Tentative Budget $1,395,672,389

37. 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.

38. 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.