1. Superintendent’s Parent Leadership Cadre Budget Overview October 26, 2009

2. 2 General Operating$374.8 Federal Stabilization17.9 Special Revenue69.4 Debt Service29.5 Capital Projects226.7 Internal Service48.4 Total$ 766.7 2009-10 Appropriations Million

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4. 4 Capital Funding  Major sources of revenue are ad valorem taxes, impact fees, and state PECO funds.  The maximum millage rate is set by the legislature. o In 2008-09, it was reduced from 2 mills to 1.75 mills. o In 2009-10, it was reduced again from 1.75 mills to 1.5 mills.  The value of the tax roll declined by 15.5% in 2009-10.  Tax receipts will decline from $45 million in 2008-09 to $33 million in 2009-10.  Impact fees will decline from $18.5 million in 2008-09 to $7 million in 2009-10.  PECO funding declined from $11 million in 2008-09 to $.5 million in 2009-10.

5. 5 Statewide Revenue Overview  In 2009-10 the State’s General Revenue Budget is $21.8 billion.  Public schools receive approximately 37% of the State’s General Revenue Budget, or $8 billion.  This represents approximately 47% of total public school funding.  An additional $9 billion is generated by local ad valorem taxes.  Osceola receives about 2% of total state funding for education.

6. The Florida Education Finance Program (FEFP) is a collection of formulas enacted by the legislature as a method to fund public education through the distribution of state and local funds to the school districts in Florida. The Florida Legislature sets the Required Local Effort millage rate that must be levied by the School Board to generate its share of FEFP funding. In 2009-10, this was 5.165 mills. The School Board must levy the required local effort millage rate in order to obtain its share of state funding under the Florida Education Finance Program. 6 FEFP Florida Education Finance Program

7. FEFPFEFP 7

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9. 9  In response to the declining revenues in 2007-08 and 2008-09, the School Board instituted changes to reduce General Fund expenditures by $25 million including $17 million in salary reductions.  No salary increases were given to any employee groups in 2008-09. Budget Reductions

10. 10 The School District of Osceola County, Florida Long Range Fund Balance Forecast As of 10/20/09 Unreserved% of Revenues 2007-0842,465,951 10.75% 2008-0940,647,718 10.78% 2009-1042,821,882 11.80% 2010-1128,073,082 7.99%  3.3% Revenue Reduction  Class Size Reduction 2011-12 8,606,372 2.60%  3.7% Revenue Reduction  Loss of.25 Mill  Does not include $12 million loss of Federal Stimulus Funds.  Does not include increases for salaries, health insurance, utilities, etc.