1. Laura Shaud Director, Budgeting

2. It is the millage rate that would generate the same ad valorem tax revenue as was levied in the prior year when applied to the current year certified taxable value (with certain exclusions). The current year total proposed millage rate is 2.91% less than the rolled back rate.

3. NOTICE OF BUDGET HEARING The Escambia County School Board will soon consider a budget for 2009 – 2010. A public hearing to make a DECISION on the budget TAXES will be held on: July 30, 2009 5:30 p.m. at The Escambia County School Board Dr. Vernon McDaniel Building 215 West Garden Street Pensacola, FL 32502

4. Required Local Effort (RLE)5.612 Discretionary – Operating 0.748 Discretionary – Critical Operating Needs 0.250 Discretionary – Local Capital Improvement 1.250 Total Proposed 2009-10 Millage 7.860 COMPONENTS OF DISTRICT LEVIED MILLAGE (NON-VOTED)

5. Rate Determined By Required Local Effort (RLE)State Discretionary – Operating School Board Discretionary – Critical Operating NeedsSchool Board Discretionary – Local Capital ImprovementSchool Board

6. Fund Required Local Effort (RLE)General Discretionary – OperatingGeneral Discretionary – Critical Operating NeedsGeneral Discretionary – Local Capital Improvement Capital Outlay

7. Dictated by Legislature & FLDOE in accordance with Section 1011.62,F.S. To receive the state portion of the FEFP formula and certain categoricals ($106,996,369), the District must levy 5.612 mills for 2009-10

8. The RLE increased from 5.286 in 2008-09 to 5.612 in 2009-10, an increase of.326 mills

9. May be levied at discretion of District School Board in accordance with Section 1011.71,F.S. Revenue generated by this levy is equalized by state funding to assure that districts receive at least $446.68 per UWFTE (average $ per UWFTE statewide)

10. Historically the District has levied the.510 mills allowable for discretionary basic millage and.250 mills allowable for discretionary supplemental millage For 2008-09 the District was limited to.498 mills basic discretionary and.250 discretionary supplemental for a total of.748 (Decrease of.012 mills was redirected by the State into RLE millage) For fiscal year 2009-10 the discretionary basic millage combined with the discretionary supplemental millage with a maximum of.748 mills. Both are now equalized to state average No change in combined millage for 2009-10

11. Failure to levy the.748 mills of discretionary operating allowed could cost the District up to $6,245,872 in equalization funds plus the reduction in tax revenues (all general fund unrestricted)

12. Beginning with 2009-2010, Districts can levy an additional.250 mills for critical operating needs For 2009-2010 the proposed millage includes.250 mills as a critical operating needs levy Offset by a.250 mills reduction in Discretionary Local Capital Improvement Millage

13. May be levied at the discretion of the District School Board in accordance with Section 1011.71,F.S. Historically the District has levied 2.0 mills For 2008-09, State restricted millage rate to maximum of 1.75 mills (decrease of.250 mills) Board further reduced the levy to 1.686 mills for 2008-09 For 2009-10 maximum allowable is 1.5 mills Proposed for 2009-10 is 1.25 mills

14. Failure to levy this rate would cost the District tax revenues that are used for the purchase of buses, computers and other equipment

15. Note: 2009-2010 FY based on tax roll as certified by Property Appraiser

18. RLE $40.75 Discretionary – Operating 0.00 Discretionary – Critical Operating Need 31.25 Capital Outlay (54.50) Total Increase $17.50 *With no change in taxable value from prior year.

22. RLE$84,947,262 Disc. – Operating11,322,265 Disc. – Critical Operating Needs 3,784,180 Disc. Local Capital Improvement 18,920,898 TOTAL $118,974,605

23. RLE$82,994,097 Disc. Basic/ Supplemental 11,744,151 Capital Improvement26,471,443 TOTAL $121,209,691

24. Budget process begins FTE forecasting Staffing allocation plan School Board workshops to develop priorities School budget & staffing allocations to schools School budgets & staffing received Dept budget requests received Evaluation of requests & comparison to projected revenues Board workshop to review budget New fiscal year begins Public hearingsBudget approved

25. General Fund$308,690,164.80 Special Rev. Food Services 25,006,253.14 Spec. Rev. Other Federal Programs 40,803,126.46 Spec. Rev. – ARRA Funds 34,021,648.00 Debt Svc. Funds11,367,225.49 Capital Projects Funds131,306,909.37 Internal Svc. Funds60,803,034.37 Grand Total$611,998,361.63

28. Federal/Federal through State $ 1,900,000.00 State156,247,799.00 Property Taxes100,047,207.00 Other Local5,532,537.32 Total Revenue263,727,543.32 Transfers In7,321,798.00 Beginning Fund Balance 7/1/09 37,640,823.48 Total Available $308,690,164.80

30. Salaries$ 167,600,218.13 Benefits51,462,939.30 Purchased Svcs.25,438,432.83 Energy Svcs.15,886,585.58 Materials & Supplies15,148,713.76 Capital Outlay3,127,331.11 Other Expenses 6,354,613.38 Total Appropriations 285,018,834.09 Transfers & Reserves23,671,330.71 Grand Total$308,690,164.80

32. THIS FUND IS USED FOR THE DAY-TO-DAY OPERATION OF THE SCHOOL SYSTEM. IT PAYS FOR THE MAJORITY OF: Salaries and Fringe Benefits Supplies and Materials Textbooks Transportation Utilities Other Expenditures (Fees, Agreements, Repairs, Equipment, Etc.) TOTAL BUDGET $308,690,164.80

34. THIS FUND IS USED TO ACCOUNT FOR FEDERAL GRANT PROGRAMS, THE SCHOOL FOOD SERVICE PROGRAM AND THE FEDERAL STIMULUS FUNDS: Food Service$25,006,253.14 Federal$40,803,126.46 (New grants are budgeted as received) ARRA$34,021,648.00

35. THIS FUND IS USED TO ACCOUNT FOR THE ACCUMULATION OF RESOURCES FOR, AND PAYMENT OF, GENERAL LONG-TERM DEBT PRINCIPAL, INTEREST, AND RELATED COST: Certificates of Participation Long-Term Leases TOTAL BUDGET $11,367,225.49

36. THIS FUND IS USED FOR EDUCATIONAL CAPITAL OUTLAY NEEDS:  Acquisition - Facilities & Land  Construction & Renovation - Facilities  Acquisition - Major Equipment TOTAL BUDGET $131,306,909.37

37. THIS FUND IS PRIMARILY USED TO ACCOUNT FOR THE BOARD’S SELF-INSURANCE PROGRAMS, LIFE INSURANCE AND THE WAREHOUSE OPERATIONS: Auto & General Liability / Worker’s Comp.$ 5,145,439.00 Dental / Health / Life54,695,045.37 Warehouse Operations962,550.00 TOTAL BUDGET $60,803,034.37

40. Projected