Impact of Federal Stimulus Funds on your School District

THE SCHOOL DISTRICT OF PALM BEACH COUNTY

Mike Burke, CFO

May 15, 2009

Saving and Creating Jobs and Reforming Education

“In a global economy where the most valuable skill you can sell is your knowledge, a good education is no longer just a pathway to opportunity - it is a pre-requisite. The countries that out-teach us today will out-compete us tomorrow.”

- President Barack Obama, 2/24/09

Historic, One-time Investment

Over $100 billion education investment Historic opportunity to stimulate

economy and improve educationSuccess depends on leadership,

judgment, coordination, and communication

American Recovery and Reinvestment ActGuiding Principles

1. Spend quickly to save and create jobs.

2. Thoughtfully invest one time funds.

3. Advance effective reforms.

4. Ensure transparency and accountability.

American Recovery and Reinvestment ActAssurances – Advance Core Reforms

1. Achieve Equity in Teacher Distribution and Quality.

2. Enhance Academic Standards and Assessments.

3. Improve the Collection and Use of Data.

4. Support Struggling Schools.

Investment Strategies- Save and Create Jobs

1. Assign high-performing teachers to low-performing schools in tested areas.

2. Hire high-performing Teach for America (TFA) teachers in low-performing schools

3. Provide reading coaches and other appropriate coaches for all schools with focus on low-performing schools.

4. Provide district and school-level Response to Intervention (RtI) trained facilitators with focus on low-performing schools

5. Provide student services personnel for all schools with a focus on low-performing schools

• Provide social workers and psychologists at all Title I and Correct II

schools to address attendance, intervention strategies,

testing/placement, RtI, and Positive Behavior Support (PBS)

Investment Strategies –Save and Create Jobs Continued:

6. Provide related services personnel for students with disabilities at all schools in order to provide services/therapies identified on the students’ Individualized Education Plans (IEPs); provide paraprofessionals in accordance with the students’ IEPs; and provide a full-time Exceptional Student Education (ESE) Specialist at all Title I schools and schools with more than 20% ESE enrollment

7. Increase Public School PreK to full day (VPK half-day, Title-I or IDEA PreK the remainder) during the school year in low-performing schools

Investment Strategies – Professional Development

8. Provide intensive professional development focused on the language arts standards including RtI, integration of technology and access points for students with disabilities and English Language Proficient (ELP) standards for ELL students

9. Provide intensive professional development focused on the math standards including RtI, integration of technology and access points for students with disabilities (including teachers of SWD and ELL)

10.  Provide intensive professional development focused on the science standards including RtI, integration of technology and access points for students with disabilities (including teachers of SWD and ELL)

11. Implement and provide professional development on the new reading assessment

12. Provide intensive professional development in Positive Behavior Support (PBS).

Investment Strategies -Technology

13. Provide necessary technology tools and other teaching

resources (including appropriate accommodations and assistive

technology) for reading, math and science for all students

including ELL and SWD.

14.  Bring schools and districts up to readiness level in technology

(student/computer ratio; adequate data connection, appropriate

capacity caching and proxy servers, etc.)

• To track student performance on all curriculum standards and in the accelerated programs

• To collect accurate and timely formative student performance data

• To access computer-based testing needs

15. Enhance the collection and reporting of data to provide

accessibility and transparency for use of funds

Investment Strategies –Increase Access to Rigorous Courses

16. Increase student participation in more rigorous advanced

courses International Baccalaureate, Advanced Placement,

Advanced International Certificate of Education, Dual Enrollment

and Industry Certification

• Insure access by increasing classes and programs offered in

accelerated programs

• Increase online opportunities• Provide Professional Development for more teachers and

counselors in those acceleration programs

• Plan additional parent information efforts

• Increase the availability of accelerated c0-curricular activities

Investment Strategies – Quality Educators

17. Provide mentoring and induction for new and struggling teachers.

18. Provide teachers with the professional development necessary and/or with reimbursement for courses and certification examinations upon completion to become highly-qualified

• Provide incentives for Reading Endorsement, ESOL Endorsement, Content-area certification for ESE teachers

Investment Strategies -Leadership

19. Provide professional development to leadership teams that includes: monitoring instruction, lesson study, RtI, and how to schedule a school to provide embedded time for professional development and intervention.

20. Provide performance bonus pay for high-performing leadership teams and assign them to lowest-performing schools

Other:

21. Other district-determined focused strategies aligned to the assurances and principles.

Three Major Components

1. State Fiscal Stabilization Funds Stabilize state and local budgets in

order to minimize and avoid further reductions in education.

2. Targeted Stimulus Funds Title I and IDEA entitlement grants

3. Competitive Grants Reform efforts and “Race to the Top” Grant

Opportunities

Total Stimulus Package $787 Billion

Nation Florida Palm Beach Palm Beach2 Year Total

State Fiscal Stabilization Fund FY10 & FY11 FY2010

Education (K-12 & Higher Educ.) $39,500 $2,100.0 TBD $60.9Other Critical Services (Safety) 8,818 595.4 TBD TBD

Administration & Outlying Areas 282 N/A N/A N/A

Sub-total Stabilization $48,600 $2,695.4 TBD $60.9

Targeted StimulusTitle I (regular) $10,000 $509.0 $27.7 $13.9Title I (School Improvement Grants) 3,000 142.7 7.0 3.5Education Technology (Title II, Part D) 650 30.0 0.6 0.3McKinney Vento Homeless Act 70 3.0 TBD TBD

IDEA, Part B 11,300 627.3 40.7 20.4IDEA, Part C - (children birth to 3) 500 19.7 1.3 0.7IDEA, Section 619 (children age 3-5) 400 16.0 1.0 0.5Sub-total $25,920 $1,347.7 $78.3 $39.2

Competitive GrantsState Incentive Grants & Innovation Fund $5,000 TBD TBD TBD

Teacher Incentive Fund (creative tchr comp. plans) 200 TBD TBD TBD

Statewide Longitudal Data Systems 250 TBD n/a n/a

National School Lunch Program 100 5.4 TBD TBD

Impact Aid Construction/Modernization 100 TBD TBD TBD

Sub-total $5,650 TBD TBD TBD

Total $80,170 TBD TBD $100.1

Qualified School Construction Bonds $22,000 Unavailable $68.1 $68.1QSCBs - School Districts with debt capacity may borrow interest free.

THE SCHOOL DISTRICT OF PALM BEACH COUNTY, FLORIDAAmerican Recovery and Reinvestment Act (ARRA)

(funding in millions)

Florida needs Waiver to Qualify for SFSF

Florida school districts experienced four reductions totaling 6.42% to the Florida Education Finance Program (FEFP) since the start of the 2007-08 school year. The last reduction of 2% occurred during January’s Special Legislative Session.

The cumulative impact of these reductions state-wide is $1.2 billion or $457 dollars per student.

The cumulative impact to the School District of Palm Beach County was $90.1 million or $455 dollars per student.

States must meet FY2006 maintenance of effort requirement to qualify for State Fiscal Stabilization Funds or submit waiver to Secretary of Education.

Summary of FEFP Reductions

Fiscal Total Per Unwtd Total Per UnwtdYear Date Source % FEFP FTE Student FEFP FTE Student

FY2008 7/19/2007 Original 2nd FEFP Calc. $19,309,817,902 $7,307.90 $1,269,412,807 $7,626.28FY2008 10/9/2007 Special Session C 19,040,064,140 7,205.81 1,251,679,399 7,519.75

Reduction 1 -1.40% ($269,753,762) ($102.09) ($17,733,408) ($106.54)

FY2008 12/24/2007 Original 3rd FEFP Calc. $18,972,168,125 $7,212.00 $1,260,666,952 $7,468.05FY2008 3/4/2008 S.B. 2500 Rev. 3rd Calc. 18,748,424,701 7,126.95 1,245,799,598 7,379.98

Reduction 2 -1.18% ($223,743,424) ($85.05) ($14,867,354) ($88.07)

FY2008 4/16/2008 4th FEFP Calc. $18,745,094,657 $7,128.22 $1,246,694,109 $7,364.69FY2009 4/28/2008 Final Conference HB5001 18,412,772,326 6,997.37 1,213,426,730 7,248.03

Reduction 3 -1.84% ($332,322,331) ($130.85) ($33,267,379) ($116.66)

FY2009 12/18/2008 3rd FEFP Calculation $18,297,301,058 $7,000.44 $1,214,927,421 $7,185.78FY2009 1/6/2009 Spc. Sess. Rev. 3rd Calc. 17,931,159,595 6,860.36 1,190,615,895 7,041.98

Reduction 4 -2.00% ($366,141,463) ($140.08) ($24,311,526) ($143.80)

Cumulative Reductions to Date -6.42% ($1,191,960,980) ($458.07) ($90,179,667) ($455.07)

State Palm Beach

Cumulative Impact of FEFP reductions to SDPBC (FY08 - FY09)

2007-08 (1)

2007-08 (2)

2008-09 (3)

2008-09 (4)

($100,000,000)

($90,000,000)

($80,000,000)

($70,000,000)

($60,000,000)

($50,000,000)

($40,000,000)

($30,000,000)

($20,000,000)

($10,000,000)

$0

Legislature Relied Heavily on SFSF to balance FY2010 budget

Of the $2.1 billion available to Florida over the next two years, the Legislature earmarked $907.9 million for K-12 education in FY10.

The allocation for Palm Beach is $60.9 million.

State is dependent on these funds to keep per student funding at the current level.

Florida’s waiver to qualify for SFSF was recently submitted and expected to be approved in the near future.

State Public School Funding

FY2010K-12 Funding

Revenue Souce State %State 7,948,769,918 44%Federal SFSF 907,920,175 5%Local 8,938,410,657 50%Lottery 129,914,030 1%

17,925,014,780 100%

State44%

Federal SFSF

5%

Local50%

Lottery1%

Palm Beach - Public School Funding

FY2010K-12 Funding

Revenue Souce Palm Beach %State 255,106,181 21%Federal SFSF 60,872,023 5%Local 875,885,770 73%Lottery 8,973,482 1%

1,200,837,456 100%

State21%

Federal SFSF

5%

Local73%

Lottery1%

THE SCHOOL DISTRICT OF PALM BEACH COUNTYFlorida Education Finance Program (FEFP)

Year-end Original Year-end Amended Amended Year-end OriginalFY 2007 FY 2008 FY 2008 FY 2009 FY 2009 FY 2009 FY 2010 Variance2006-07 2007-08 2007-08 2008-09 2008-09 2008-09 2009-10 Increase/

Fourth Final Conf. Report Fourth Second Rev. Third Calc. Fourth Calc. Final Conf. Report (Decrease)

Calculation 4/30/2007 Calculation Calculation 1/11/2009 5/1/2009 5/5/2009 FY10 vs. FY09

K-12 Unweighted FTE's 169,480.07 166,452.32 169,280.00 167,414.67 169,073.94 169,554.39 168,456.15 (1,098.24)K-12 Weighted FTE's (Funded) 186,709.28 181,574.02 185,200.71 180,892.37 182,148.60 182,592.21 180,882.82 (1,709.39)

State Base Student Alloc (BSA) $3,981.61 $4,163.47 $4,079.74 $3,971.74 $3,886.14 $3,886.14 $3,630.62 ($255.52)District Cost Differential (DCD) 1.0307 1.0334 1.0334 1.0364 1.0364 1.0364 1.0390 0.0026 Palm Beach County Schools BSA $4,103.85 $4,302.53 $4,216.00 $4,116.31 $4,027.60 $4,027.60 $3,772.21 ($255.39)

Net FTE Revenue $766,226,025 $781,227,650 $780,806,808 $744,609,314 $733,620,881 $735,407,563 $682,328,739 ($53,078,824)

Additional Allocations:Class Size Reduction $140,477,070 $176,986,860 $175,764,111 $185,529,475 $182,628,451 $182,628,451 $191,738,768 $9,110,317ESE BLOCK GRANT 75,161,165 75,907,110 74,373,214 71,850,521 70,298,550 70,298,550 64,677,064 (5,621,486)Lottery - Discretionary 7,077,058 6,936,275 8,633,174 7,108,873 4,397,503 4,400,251 0 (4,400,251)Lottery - School Recog. $ 10,742,052 10,742,052 10,351,757 8,798,993 10,169,946 10,169,946 8,973,482 (1,196,464)SAI 37,510,028 38,716,923 37,934,549 36,522,359 35,733,476 35,733,476 33,165,989 (2,567,487)Reading Instruction 7,276,670 7,275,248 7,293,136 7,001,054 6,950,978 6,955,264 6,482,328 (472,936)Safe Schools 5,406,036 5,188,317 5,115,940 4,951,286 4,869,852 4,871,239 4,384,394 (486,845)Merit Award Allocation 9,860,628 9,664,472 0 118,133 118,133 118,133 124,659 6,526Other Categoricals 49,559,597 50,149,842 46,473,724 44,589,919 44,775,167 45,509,279 41,141,006 (4,368,273)Declining Enrollment Supplement 6,719,832 6,844,312 436,402 4,187,522 409,368 0 1,190,849 1,190,849DJJ Supplemental Funding 0 640,808 591,856 613,464 366,336 375,384 358,773 (16,611)Discretionary Funds (Basic) 78,173,988 84,718,056 82,564,836 79,593,351 79,718,419 79,718,419 105,399,382 25,680,963Discretionary Funds (Supp) 17,320,903 16,611,383 16,674,859 16,781,731 16,808,100 16,808,100 0 (16,808,100)Equal Percent Adjustment 0 (320,257) 0 (249,265) (249,265) 0 249,265State Fiscal Stabilization Funds 60,872,023 60,872,023State Prorated Holdback (1,198,895) 1,198,895Total FEFP & Categoricals $1,211,511,052 $1,271,609,308 $1,246,694,109 $1,212,255,995 $1,190,615,895 $1,191,545,895 $1,200,837,456 $9,291,561

Increase/(Decrease) from Previous Year $99,105,032 $60,098,256 $35,183,057 ($34,438,114) ($56,078,214) ($55,148,214) $9,291,561

Less Impact of returning .25 Mill funds to Capital (.25 mill) ($35,227,066)Overall Budget Impact ($25,935,505)

Cumulative Impact ($24,915,199) ($59,353,313) ($80,993,413) ($80,063,413) ($105,998,918) Adj. for Capital Tran.

Total Funds per Unweighted FTE (student) $7,148.40 $7,639.48 $7,364.69 $7,241.04 $7,041.98 $7,027.51 $6,919.37 Adj. for Capital Tran.

Targeted Stimulus Funds

Targeted stimulus funds are distributed to school districts through existing formulas. Must be used in accordance with grant requirements.

Title I allocations are determined by socioeconomic status (poverty level – free & reduced lunch applications).

IDEA funding for youths with disabilities. Targeted Stimulus 2009-10 allocations for SDPBC:

Title I, Part A $13,885,684 IDEA, Part B $20,364,139 Title I, Part D $281,822 IDEA, Preschool $641,193

Jobs have been Saved and Created

New positions have been created within the parameters of the Federal Stimulus funds to support schools and build capacity: Coaches (Reading, Math, Science) to build teacher

capacity over the next two years. Response to Intervention (RTI)/Inclusion Facilitators –

must be ESE certified. Will reduce ESE student population over time.

Learning Team Facilitators (LTF) School Monitors

District lowered school Title I threshold in order to provide resources to more schools (40% F/R).

Responsible management of resources to date, thoughtful allocation of available funds, and efficient personnel procedures will help our employees avoid job loss.

VPK/Title I Program Model

Maximize resources by using Title I funding to enrich and extend the State of Florida free 3-hour Voluntary Prekindergarten (VPK) program

Close achievement gaps and prepare children for success in kindergarten and later life through a free 6-hour quality early education experience

Extended VPK/Title I program will be provided in 28 classrooms across 19 school sites.

Changes the lead teacher in all VPK classrooms to a certified teacher.

Retains or moves all VPK paraprofessionals to CDA positions in existing or new classrooms

Competitive Grant Stimulus Funds

U.S. Department of Education Secretary Arne Duncan has an additional $5 billion to be awarded through competitive grants.

School district’s use of current resources and stimulus funds will be reviewed as part of competitive grant award process.

Palm Beach should be well positioned to receive these additional “Race to the Top” Federal stimulus funds in the years to come.

Qualified School Construction Bonds (QSCBs)

School District may borrow up to $68.1 million at 0% interest under ARRA QSCB program.

Declining tax roll (approx. 12%) and Legislative revisions to capital outlay millage authority over the past two years has impacted District’s debt capacity.

FY09 Capital Outlay Reduced from 2.00 to 1.75 mills FY10 Capital Outlay Reduced from 1.75 to 1.50 mills

Discretionary Millage increased 0.25 mills, local Board may choose operating or capital.

Additional .25 mills may be levied by Local Board with a super majority vote for 2 years. Contingent on voter approval beyond 2 years.

Market for QSCBs is being developed. Relatively few banks in need of a Federal tax credit at this time.

Unprecedented Accountability and Transparency

Extensive reporting requirements accompany the Federal Stimulus funds (including State Fiscal Stabilization Funds).

Funds must be utilized and reported under ARRA guiding principles (4), assurances (4), and strategies (21).

Jobs saved, created, expenditure data, and performances measures must be reported to DOE bi-monthly in a prescribed format.

Reporting on use of Stimulus funds must be transparent and available on-line.

Questions & Answers

THE SCHOOL DISTRICT OF PALM BEACH COUNTYMike BurkeMay 15, 2009