Special Revenue Funds

THE SCHOOL DISTRICT OF PALM BEACH COUNTY, FLORIDA

EXECUTIVE SUMMARY OF THE 2015-2016 BUDGET (ALL FUNDS)

SUBMITTED FOR FINAL ADOPTION

Robert M. Avossa, Ed.D., Superintendent September 9, 2015

(THIS PAGE LEFT BLANK INTENTIONALLY)

THE SCHOOL DISTRICT OF PALM BEACH COUNTY, FLORIDA EXECUTIVE SUMMARY OF THE 2015-2016 BUDGET (ALL FUNDS)

BOARD MEMBERS Chuck Shaw, Chairman Frank A. Barbieri, Jr., Esq., Vice Chairman Marcia Andrews Karen M. Brill Mike Murgio Debra L. Robinson, M.D. Erica Whitfield ISSUED BY Robert M. Avossa, Ed.D., Superintendent David Christiansen, Ed.D., Deputy Superintendent/Chief of SchoolsMichael J. Burke, Chief Operating Officer PREPARED BY Heather Knust, CPA, Budget Director

SUBMITTED FOR FINAL ADOPTION

SEPTEMBER 9, 2015

Executive Summary of the 2015-2016 Budget (All Funds) Table of Contents

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Section 1 TRANSMITTAL LETTER ........................................................................... 1-1

Section 2 BUDGET OVERVIEW

GFOA Award .......................................................................................................... 2-1 School Board Members .......................................................................................... 2-3 Strategic Plan 2016 ................................................................................................ 2-4 District Vision, Mission, and Principles ................................................................... 2-6 District Overview .................................................................................................... 2-7 Guide to the Budget ............................................................................................... 2-8 Comparison of Budget - All Funds ........................................................................ 2-12 Proposed 2015-2016 Budget - Summary of All Funds .......................................... 2-13 Revenue, Expenditures, and Fund Balances All Funds ..................................... 2-15 Beginning and Ending Fund Balances .................................................................. 2-16 Organizational Chart ............................................................................................ 2-17 Positions by Function All Funds ......................................................................... 2-18

Section 3 BUDGET PROCESS

Budget Process ...................................................................................................... 3-1 Budget Adoption Calendar ..................................................................................... 3-4 Student Enrollment History and Forecast ............................................................... 3-6 TRIM (Truth in Millage) Budget Advertisements ..................................................... 3-7 Resolution Certifying Millage to be Levied ............................................................ 3-13 Resolution Determining Revenues and Millages Levied ....................................... 3-14 Approval of 2015-2016 District Summary Budget ................................................. 3-16 Resolution Adopting Final Budget ........................................................................ 3-17 District Summary Budget ...................................................................................... 3-18

Section 4 MILLAGE AND PROPERTY TAXES

Millage and Property Taxes .................................................................................... 4-1 Comparison of Palm Beach County Gross Taxable Value ...................................... 4-3 Comparison of Millage Rates ................................................................................. 4-4 Comparison of 2014-2015 to 2015-2016 Millage and Rolled Back Rate ................. 4-5 Comparison of Homeowner Property Taxes Tax Year 2014 to 2015 ................... 4-6 Millage Rates and Homeowner Property Taxes Five Year History ....................... 4-7 Sample Tax Bill ...................................................................................................... 4-8 Certification of School Taxable Value ................................................................... 4-10

Section 5 GENERAL FUND

General Fund ......................................................................................................... 5-1 Proposed FY 2016 Revenue and Appropriations .................................................... 5-3 Comparison of FY 2015 to FY 2016 ....................................................................... 5-4 Definition of Functions and Explanation of Variances ............................................. 5-6 Revenue and Expenditures FY 2012 to FY 2016 ............................................... 5-10 Fund Balance and Contingency Reserve ............................................................. 5-11


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Section 5 GENERAL FUND

Florida Education Finance Program (FEFP) Detail ............................................... 5-12 General Fund Revenue FY 2012 to FY 2016 ..................................................... 5-13 General Fund Appropriations Five Year History................................................. 5-14 FY 2016 School Appropriations by Function ......................................................... 5-16 FY 2016 School Appropriations by Program ......................................................... 5-17 Department Appropriations Detail by Division and Department ......................... 5-18 Capital Maintenance by Account Two Year History .............................................. 5-22 State Funding Formula Flow Chart ....................................................................... 5-23 Revenue and Appropriations FY 2013 to FY 2016 ............................................. 5-24

Section 6 CAPITAL PROJECTS FUNDS

Capital Projects Funds ........................................................................................... 6-1 Proposed FY 2016 Revenue and Appropriations .................................................... 6-3 Revenue and Appropriations FY 2012 to FY 2016 ............................................... 6-4 Administrative Services Fund Two Year History and Comparison ....................... 6-5 FY 2016-2020 Five Year Capital Plan .................................................................... 6-6

Section 7 DEBT SERVICE FUNDS

Debt Service Funds ................................................................................................ 7-1 Proposed FY 2016 Revenue and Appropriations .................................................... 7-3 Revenue and Appropriations FY 2012 to FY 2016 ............................................... 7-4 Debt Service Existing Obligations ........................................................................... 7-5 Debt Service Estimated Legal Limits ...................................................................... 7-6 Debt Service Amortization Schedules..................................................................... 7-7 District Bond and Note Ratings............................................................................... 7-9

Section 8 SPECIAL REVENUE FUNDS

Special Revenue Funds ......................................................................................... 8-1 Special Revenue - Food Service FY 2016 Revenue and Appropriations ............. 8-2 Special Revenue - Food Service FY 2012 to FY 2016 ......................................... 8-3 Special Revenue Funds Other FY 2016 Revenue and Appropriations .............. 8-4 Special Revenue Funds Other FY 2012 to FY 2016 ......................................... 8-5 Special Revenue Funds Other Two-Year History and Comparison ................... 8-6 Special Revenue RTTT Funds Two-Year History and Comparison .................. 8-9

Section 9 INTERNAL SERVICE FUNDS

Internal Service Funds ........................................................................................... 9-1 Proposed FY 2016 Revenue and Appropriations .................................................... 9-2 Health Internal Service Fund by Account Two Year History ................................. 9-3 Workers Compensation, General and Auto Liability Internal Service Fund9-4


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Section 10 SCHOOLS

School Budgets - General Fund by Account and Level ......................................... 10-1 School Budgets - General Fund by Function ........................................................ 10-2 Elementary Schools All Funds ........................................................................... 10-3 Elementary Schools Appropriations, FTE & Student Enrollment ........................ 10-4 Middle Schools All Funds .................................................................................. 10-6 Middle Schools Appropriations, FTE & Student Enrollment ................................ 10-7 High Schools All Funds ..................................................................................... 10-8 High Schools Appropriations, FTE & Student Enrollment ................................... 10-9 Virtual Schools All Funds ................................................................................. 10-10 Education Alternatives All Funds ..................................................................... 10-11 Education Alternatives Appropriations, FTE & Student Enrollment .................. 10-12 Exceptional Student Education All Funds ........................................................ 10-13 Charter Schools General Fund ........................................................................ 10-15 Adult Education General Fund ......................................................................... 10-17 Community Education General Fund ............................................................... 10-18 Childcare/Enrichment Programs General Fund ............................................... 10-19 Pre-K Child Care General Fund ....................................................................... 10-21 Summer Camp General Fund .......................................................................... 10-21

Section 11 DEPARTMENTS

Governance Division ..................................................................................................... 11-1 9000 School Board ............................................................................................. 11-2 9104 Office of Inspector General ........................................................................ 11-5 9720 General Counsel to the Board .................................................................... 11-8 9071 P.B.C. Education Foundation ................................................................... 11-11 9001 Superintendent ......................................................................................... 11-13 9080 Office of Communications ........................................................................ 11-16 9037 The Education Network ............................................................................ 11-18

Chief of Schools Division ............................................................................................ 11-21

Deputy Superintendent /Chief of Schools 9052 Deputy Superintendent /Chief of Schools. ............................................ 11-22 9057 Compliance and Special Projects ............................................................. 11-24

Human Resources 9003 Human Resources ................................................................................... 11-27 9267 Recruitment and Retention ....................................................................... 11-29 9263 Professional Standards ............................................................................ 11-32 9268 Compensation and Employee Information Services ................................. 11-35

Area Superintendents 9201 Area 1 ...................................................................................................... 11-38 9202 Area 2 ...................................................................................................... 11-41 9203 Area 3 ...................................................................................................... 11-44 9204 Area 4 ...................................................................................................... 11-47 9205 Area 5 ...................................................................................................... 11-50


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Chief of Schools Division (Continued)

Chief Academic Officer 9016 Chief Academic Office .............................................................................. 11-53 9030 School Transformation ............................................................................. 11-55 9130 School Transformation II .......................................................................... 11-58

Professional Growth 9210 Professional Growth ................................................................................. 11-61 9264 Professional Development ....................................................................... 11-63

Performance Accountability 9072 Performance Accountability ...................................................................... 11-65 9228 Educational Technology ........................................................................... 11-68 9053 Assessment ............................................................................................. 11-71 9054 Research and Evaluation ......................................................................... 11-74

Teaching and Learning 9048 Teaching and Learning ............................................................................. 11-77 9033 Early Childhood Education ....................................................................... 11-79 9051 Elementary Education .............................................................................. 11-82 9056 Secondary Education ............................................................................... 11-85 9031 Federal and State Programs .................................................................... 11-88 9021 Migrant Education Program ...................................................................... 11-91 9032 Exceptional Student Education ................................................................. 11-94 9211 ESE Area 1 .............................................................................................. 11-97 9212 ESE Area 2 ............................................................................................ 11-100 9213 ESE Area 3 ............................................................................................ 11-103 9214 ESE Area 4 ............................................................................................ 11-106 9215 ESE Area 5 ............................................................................................ 11-109 9083 Multicultural Education ........................................................................... 11-112

Educational Alternatives and Intervention 9015 Educational Alternatives and Intervention ............................................... 11-115 9012 After School Programming ..................................................................... 11-118 9044 Choice and Career Options .................................................................... 11-121 9039 Adult & Community Education ................................................................ 11-124 9333 Charter Schools ..................................................................................... 11-127 9304 Educational Alternatives ......................................................................... 11-130 9018 Safe Schools .......................................................................................... 11-133


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Operations Division ................................................................................................... 11-136

Chief Operating Officer 9013 Chief Operating Officer ........................................................................... 11-137 9019 Labor Relations ...................................................................................... 11-139 9022 Legislative Liaison .................................................................................. 11-142 9004 School Police ......................................................................................... 11-144

Financial Management 9100 Accounting ............................................................................................. 11-147 9090 Budget ................................................................................................... 11-150 9236 Treasury ................................................................................................. 11-153 9007 Risk & Benefits Management ................................................................. 11-156 9008 Diversity in Business Practice ................................................................ 11-159 9220 Purchasing ............................................................................................. 11-162 9028 ERP System ........................................................................................... 11-164 9026 FTE and Student Reporting .................................................................... 11-166

Information Technology 9230 Chief Information Officer ........................................................................ 11-169 9049 Infrastructure & Security ......................................................................... 11-172 9229 IT Enterprise Applications ...................................................................... 11-175 9231 Technical Operations ............................................................................. 11-178

Support Operations 9043 Support Operations ................................................................................ 11-181 9320 Transportation Services ......................................................................... 11-183 9095 Environmental Conservation Services .................................................... 11-186 9241 Building Code Services .......................................................................... 11-189 9242 Planning and Intergovernmental Relations ............................................. 11-192 9245 Program Management ............................................................................ 11-195 9450 Maintenance and Plant Operations ........................................................ 11-198 9458 Facilities Services/Fulton-Holland Maintenance ..................................... 11-201 9150 School Food Service Admin ................................................................ 11-204 9151 School Food Services ............................................................................ 11-204 9154 Fulton Holland Bistro .............................................................................. 11-207


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Section 12 ALLOCATION FORMULAS

Personnel Resource Allocation Formulas ............................................................. 12-1 Custodial Allocation Guidelines ............................................................................ 12-8

Section 13 APPENDICES

FEFP Program Cost Factors ................................................................................ 13-1 Comparison of Ten Largest Florida School Districts ............................................. 13-2 Statistical & Supplemental Data ......................................................................... 13-10

Section 14 GLOSSARY 14-1

The School District of Palm Beach County A Top-Rated District by the Florida Department of Education Since 2005

An Equal Education Opportunity Provider and Employer

September 9, 2015 Chairman Chuck Shaw And Members of the School Board of Palm Beach County 3300 Forest Hill Boulevard, Suite C-316 West Palm Beach, Florida 33406-5869 Chairman Shaw and Members of the Board: Submitted for your consideration and adoption are the FY 16 proposed budget for the School District of Palm Beach County and millage for tax year 2015. The proposed FY 16 budget is balanced and totals $2,305,685,044 for all funds. Balancing the Budget

The School Districts revenues are determined in large part by the Florida Legislature and Governor. Funding per student is set as part of the States annual budget approval. Local school board taxing authority is also governed at the state level with the Legislature dictating the largest component of school property taxes, known as the Required Local Effort (RLE), and through statutory caps that limit the remaining components of the school levy. The FY16 state budget provided Florida school districts with a 3% increase in funding per student for operating costs.

Although revenues are increasing for FY16, budget reductions were needed to offset the loss of $20 million in non-recurring revenues utilized in FY15 and provide funding for School Board budget priorities. School and department allocations were adjusted to achieve $16.8 million in savings for FY16. The proposed budget is responsive to the Boards budget priorities and includes a $27.2 million reserve for employee salary negotiations. While contracts must be bargained to determine salary increases, this reserve is sufficient to fund a 3% salary increase for the entire workforce.

The capital budget remains a concern as Florida school districts continue to be seriously impacted by the Legislatures 25% reduction to local capital improvement taxing authority. Our District has lost over $865 million in capital revenue since the Legislature first approved a reduction to local taxing authority in 2009. In order to balance the proposed FY16 budget, $82.7 million in forecasted needs were left unfunded.

General Fund Budget

Revenue

FY16 General Fund revenue increased $57.4 million to $1,710,056,786. The majority of the increase is a result of the increase in per student funding through the Florida Education Finance Program (FEFP) approved by the Legislature and Governor. At the state level, FEFP funding for K-12 education increased $802.4 million, compared

THE SCHOOL DISTRICT OF ROBERT M. AVOSSA, Ed.D. CHUCK SHAW PALM BEACH COUNTY, FL SUPERINTENDENT CHAIRMAN OFFICE OF THE SUPERINTENDENT FRANK A. BARBIERI, JR., ESQ. 3300 FOREST HILL BOULEVARD, C-316 VICE-CHAIRMAN WEST PALM BEACH, FL 33406-5869 MARCIA ANDREWS PHONE: 561-434-8203 / FAX: 561-434-8571 KAREN M. BRILL WWW.PALMBEACHSCHOOLS.ORG/SUPERINTENDENT ERICA WHITFIELD

MIKE MURGIO DEBRA ROBINSON, M.D.

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http://www.palmbeachschools.org/superintendent

of 5 September 9, 2015 Chairman Shaw

School District of Palm Beach County

A Top-Rated District by the Florida Department of Education Since 2005 An Equal Education Opportunity Provider and Employer

to FY15. District total funding increased $71.6 million (including the .25 mill property tax levy), from $1,351,133,820 to $1,422,750,992. Local property tax revenues are contributing an additional $75.3 million while the states contribution to Palm Beach County schools is declining $7.4 million, with the state continuing to take advantage of increasing property values to fund education. Even though funding is increasing, District funds per unweighted full-time equivalent (FTE) of $7,410 is still $216 less than at the start of FY08.

Much of the FEFP revenue is earmarked for specific purposes. Each year, lottery proceeds are allocated to school districts for school recognition and school improvement. School recognition funding remains at $100 per student for FY16 and totals $10.6 million. The District's lottery allocation is $698,197; districts are required to allocate up to $5 per student, to be used at the discretion of each school advisory council. Class-size reduction funds are increasing $3.7 million and are to be used to meet mandated class-size requirements. The digital classroom allocation is increasing $1.4 million and requires districts to develop a plan to integrate technology into the schools. The remaining categorical funds are relatively consistent with prior year.

In addition to FEFP revenue of $1.4 billion, other sources include federal revenue of $5.4 million from Medicaid, $20.9 million of state funds for adult workforce development and voluntary pre-kindergarten programs, $30.0 million of fee revenue from the after school program, $92.9 million transferred in from capital for maintenance operations, and a beginning fund balance of $117.1 million.

District-wide enrollment is projected to increase 2,976 students to 186,423 full-time equivalents (FTE). Charter schools are expected to absorb a majority of the increase and grow to 22,000 students, or nearly 12% of the Districts total enrollment. As a result, the FEFP revenue passed-through to charter schools for FY16 is expected to reach $158.8 million, an increase of $24.0 million.

Appropriations

The total proposed general fund budget for FY16 is $1,710,056,786, an increase of $57.4 million. Appropriations include a $27.2 million salary reserve to provide competitive compensation for all employees in FY16. District K-12 appropriations provide $1.1 billion directly to school operations, including instruction, instructional support, instructional materials, and office and custodial staff. Support department budgets total $239.9 million (including capital maintenance transfer), of which 75% is appropriated for transportation ($49.0 million), operation and maintenance of plant ($113.50 million), school security, ($11.7 million) and administrative technology ($5.6 million).

District K-12 appropriations also provide for $155.6 million in reserves and District-wide items, including $50.0 million in the contingency fund, $45.4 million for utilities and telephone, $30.0 million in school based allocations not yet distributed, $15.7 million in terminal leave, and other set-asides. Higher than expected state-wide property tax values increased the state average of the .748 mill levy, necessitating a prorated reduction in revenue of $391,991. There will likely be an additional negative adjustment to revenue if actual enrollment statewide is higher than projected, as has occurred the past four years. The prorated hold back to the District over the past four years has been, on average, $3.8 million per year, including the impact of the increase in property tax values. In anticipation of an additional negative revenue adjustment, the FY16 budget includes a reserve of $2.6 million. The negative adjustment is expected to be less than the average since the state has made an effort to more accurately estimate FY16 enrollment.

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Fund Balance and Contingency Fund

Fund balance is classified in five categories: nonspendable, restricted, committed, assigned and unassigned. Nonspendable is comprised of inventory items such as fuel, which is consistent from year to year. Restricted balances are resources constrained by external parties, constitutional provisions or enabling legislation, and include carryover balances restricted by Florida Statute, Florida School Board Rules, Federal laws, local ordinances or contract provisions. Workforce or Adult Education is an example of a program restricted by Florida Statute. Assigned funds are constrained by the School Board or Superintendent, to be used for a specific purpose. Unassigned is the residual classification for the general fund and is equal to the contingency fund. Board policy 2.55 requires 3% of total general fund appropriations, including charter schools and non-K-12 operations, less the contingency fund, be set aside for contingencies for unforeseen expenditures. Board policy requires a supermajority vote of the Board to expend contingency funds. All fund balance classifications are appropriated each year, with the exception of the unassigned contingency fund.

FY15 year-end fund balance is $117.1 million and is included as beginning fund balance for FY16. This represents an increase of $5.3 million from FY15 beginning fund balance. The increase is due primarily to the receipt of one-time funds related to the lease of the district spectrum. Of the total $4.5 million received, $1.8 million was used to increase contingency to $50.0 million to be in compliance with Board Policy 2.55, $2.0 million is being held in reserve for future use, and $0.7 million is allocated to fund budget priorities. The Adult Education/Workforce Program plans to utilize approximately $12.2 million of their restricted fund balance over the next two to three years for the replacement of the existing Adult Education facility. The one-time funds related to the lease of the district spectrum totaling $2.7 million, currently designated as assigned, are also expected to be utilized in FY16 for non-recurring projects. As a result, FY16 ending fund balance is expected to decline by $5.0 to $10.0 million and is projected to be between $107.1 and $112.1 million.

Capital Budget

The total proposed capital budget for FY16 is $361,615,531. This represents a decrease of $28.9 million as the Districts carryover balances continue to decline. Since the capital millage rates allowed by statute were lowered from 2.0 mills to 1.75 mills in FY09, and then to 1.50 mills in FY10, the District has utilized carryover balances to bridge the revenue gap and maintain facilities and non-construction project operations. Capital millage proceeds have dropped from $323.4 million in FY08 to a projected $237.9 million for FY16. The difference between 2.0 and 1.5 mills for the FY16 capital budget represents $79.3 million of lost revenue in FY16. With carryover balances dwindling and debt service payments being fixed, funds available for maintenance, technology, bus replacement, and other non-construction projects are being squeezed, forcing the District to reduce those expenditures.

Declining taxable property values during the recent recession have exacerbated the reduction in capital project revenues. Taxable property values increased by 10.0% for FY16, bringing the taxable value to $165.2 billion, still less than pre-recession value. Taxable values are projected to increase by more than 3% next year, to be restored to the pre-recession high of $170.2 billion; however, it will still not be enough to replace the revenue lost from the millage reductions of 2009 and 2010.

Debt service payments are funded through a $155.8 million transfer from capital to the debt service fund. At the time the debt was incurred, capital millage rates had been at 2.0 mills for decades. When the Legislature lowered the allowable capital millage rate, a greater percentage of the millage proceeds then had to be allocated to fund debt payments, as principal and interest payments are largely fixed until debt issues are paid off. At the time the debt was incurred, the District was experiencing tremendous student growth and new schools were needed to

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reduce crowding as well as additional classrooms to comply with class size requirements. At the same time, older schools needed replacement and updating to provide equitable facilities to all students. The Districts building program was needed to provide adequate facilities for students, and the debt incurred was utilized to fund the building program.

Debt Service

The debt service fund for FY16 totals $258,381,491. Revenue components include the $155.8 million transfer from capital, $94.8 million beginning fund balance, $4.5 million state funds allocated for capital outlay and debt service, and $3.3 million federal stimulus funding. Beginning fund balance represents funding set aside during the previous year to fund the first principal and interest debt payments due in August each year. Appropriations consist of $139.4 million for payment of principal, interest and associated fees, and $119.0 million set aside for August 2016 debt payments.

Special Revenue

The Special Revenue budgets total $224,419,271 at the time of proposed adoption. Many grants are awarded after the start of the fiscal year, and as a result, special revenue is expected to continue to grow throughout the year. Special revenue includes two major entitlement grants: Title I ($55.4 million) and IDEA ($39.0 million). The school food service budget, funded from a combination of federal, state and local revenues, totals $114.4 million for FY16.

Internal Service Funds

Internal Service Fund budgets total $258,991,791 for FY16. The District has two internal service funds: a health self-insurance fund and a self-insurance fund for costs related to workers compensation, general and auto liability. Charges to operating funds are recorded as revenue in internal service funds and the proceeds are used to fund claims. To avoid double counting transactions, internal service fund information is provided but not included in the tabulation of the total District budget.

Labor Negotiations

Effective July 1, 2015, the Districts labor contract with the Classroom Teachers Association (CTA) is open for re-negotiation of the entire contract. The contract year for SEIU-FPSU, AESOP and PBA begins January 1, 2016 and negotiations are expected to begin prior to January 1, 2016.

Millage Rates and Property Values

Total millage assessed by the District is decreasing from 7.594 mills for FY15 to 7.512 mills for FY16. Of the 7.512 mills, 5.014 mills is required local effort set by the State, in order to participate in the Florida Education Finance Program and receive $469.3 million of state funding for K-12 operations. The millage portion controlled by the School Board remains the same at 2.498 mills, and includes the maximum 1.5 capital mills and .748 discretionary mills, as well as the .25 mills approved by voters in November 2014. The proposed 7.512 mills is 7.7% greater than the rolled back rate, which is the rate that would generate the same dollar amount of revenue as FY15.

Property values continue to improve from the FY12 low of $132 billion, growing by 10.0% in Palm Beach County to $165.2 billion for FY16. Total FY16 projected millage revenue for both operating and capital use is $1,191,282,414.

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Budget Outlook

Looking forward, the District is in need of additional revenue to properly maintain school facilities and equipment. With the Legislature once again failing to restore capital millage rates to 2.0 mills, the District is faced with finding other avenues to solve the shortage of funds needed to maintain adequate levels of maintenance, provide technology for classrooms and replace an aging bus fleet.

The Districts .25 mill property tax levy for operations was approved by the voters for another four years in 2014, from FY16 through FY19. For FY16, the .25 mills generate $39.6 million in revenue. The revenue is designated for art, music, and physical education instruction, choice programs, and career academies.

External Budget Review Planned for FY17

The District plans to engage an outside company to assist with taking a deep dive into the allocation of resources. This review will look for opportunities to move resources closer to our schools or free up dollars for other budget priorities, including employee salary considerations. The FY17 budget will be developed in a manner that aligns resources to the Districts anticipated revised strategic plan. The external Budget Advisory Committee will be involved with this process and continue to evaluate budget recommendations before they are brought to the Board for approval.

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The Government Finance Officers Association of the United States and Canada (GFOA)

presented a Distinguished Presentation Award to the School District of Palm Beach County,

Florida for its annual budget for the fiscal year beginning July 1, 2014. In order to receive this

award, a governmental unit must publish a budget document that meets program criteria as a

policy document, as an operations guide, as a financial plan, and as a communications device.

This award is valid for a period of one year only. We believe our current budget continues to

conform to program requirements, and we are submitting it to GFOA to determine its eligibility for

another award.

FY 2016 Executive Summary___________________________________________________________________________________________________________The School District of Palm Beach County

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_______________________________________________________________________________________________________________________

SCHOOL BOARD MEMBERS

District 1: Mr. Mike Murgio Year Elected: 2012 Term Expires: November 2016

District 2: Mr. Chuck Shaw, Chairman Year Elected: 2010 Term Expires: November 2016

District 3: Mrs. Karen M. Brill Year Elected: 2010 Term Expires: November 2018

District 4: Mrs. Erica Whitfield Year Elected: 2014 Term Expires: November 2018

District 5: Mr. Frank A. Barbieri, Jr., Esq., Vice Chairman Year Elected: 2008 Term Expires: November 2016

District 6: Mrs. Marcia Andrews Year Elected: 2010 Term Expires: November 2018

District 7: Dr. Debra L. Robinson, M.D. Year Elected: 2000 Term Expires: November 2018


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Our Vision

The School District of Palm Beach envisions a dynamic collaborative multicultural

community where education and lifelong learning are valued and supported, and all learners reach their highest potential and succeed in the global economy.

Our Mission

The School District of Palm Beach County is committed to providing a world-class education with excellence

and equity to empower each student to reach his or her highest potential with the

most effective staff to foster the knowledge, skills, and

ethics required for responsible citizenship and

productive careers.

STRATEGIC PLAN

Defining Our Guiding Principles

Accountability-the notion that people or an organization should be held responsible for improving student achievement Building Capacity-Strengthening the skills, competencies, and abilities of people or communities Choice-making a decision about student attendance after acquiring information about the School District of Palm Beach County program offerings Community-students, faculty, administrators, parents, business, and community members working together to create learning opportunities within local learning institutions Creativity-the ability to make new things or think of new ideas Cultural Sensitivity-having the knowledge, awareness, and the acceptance of other cultures Diversity-the inclusion of different types of people in a group or organization Equity-the state or quality of being just, impartial, and fair Ethics-in accordance with moral and professional principles Excellence-exceeding the set standard Family-the person or persons acting in the capacity of a parent Honesty-a quality characterized by reliability, truthfulness, and fairness Inclusion-the practice of placing students with disabilities in regular classrooms so that everyone can learn from each other Professionalism-the conduct, aims, or qualities that characterize a professional Respect-admiring someone or something that is good, valuable, or important Safety-the act of preventing accidents and injuries Social/Emotional Development- a process for learning life skills including how to deal with oneself, others, relationships, and working in an effective manner. Trustworthiness-able to be relied upon to do or provide what is needed or right

Goal 1: Student First Philosophy

Implement researched-based, fully enrichedinstructional models that enable students todevelop the critical thinking and analyticalskills necessary to succeed academically

Support each student, not as a collective unit,but with individualized educational plans

Provide meaningful follow-up, monitoring,and mentorships that provide supportnecessary to succeed

Develop age-appropriate life skills trainingprograms for students and families thatcultivate soft skills includingself-determination and self-advocacy

Seek equitable outcomes for all studentgroups that help each student achieve thegreatest success possible

Continue and strengthen choice programs,career academies, and other career/technicalcurricula that meet the needs of our studentswhile supporting the economic developmentgoals of the community

Implement methods to identify learning stylesand match them with appropriate teaching methods and measurable performance goals

Develop a program that provides supportfrom one adult to every student in our system

Goal 2: Family Matters

Create policies and programs that encourageall parents, caregivers, and families as theprimary partners in the education of students

Implement new policies, procedures, andprocesses to make schools more familyfriendly so that the school encouragesparent/caregiver participation by providing:an inviting campus, a welcoming atmosphereand mutually beneficial opportunities tointeract with teachers and administrators

Train principals and teachers how maximizeinteractive opportunities with families/caregivers via face-to-face meetings as wellas communication through technology

Engage partners to empower families/caregivers

Hold teachers/administrators accountable toengage families/caregivers

Create, recruit, and implement on campusvolunteer opportunities in all aspects ofschool life for families/caregivers andcommunity partners

Examine opportunities to improve adultliteracy skills, and career/technical trainingoffered to families/caregivers

Encourage parental supports for schoolreadiness by providing support mechanismsthat bolster families/caregivers

Foster a climate and culture that promotesthat District goals and their achievement

Robert M. Avossa, Ed.D.Superintendent

Board Members:

Chuck Shaw Chairman

Frank Barbieri, Esq. Vice Chairman

Marcia Andrews

Karen Brill

Erica Whitfield

Mike Murgio

Debra Robinson, M.D.

(The Strategic Plan is Currently Under Development for FY 2017)


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_______________________________________________________________________________________________________________________

Goal 3: Qualified and Highly Effective Workforce

Cultivate a fluid leadership development successionplanning program that keeps good teachers teaching,strengthens classroom management efforts, andproduces highly effective academic leaders, assistantprincipals, principals, andadministrators, and teachers

Conduct a resource allocationstudy evaluation socio-economicfactors in the school District toidentify shortfalls andinconsistencies between schoolswith the District, reassignresources, including the workforce,to address equity in a Student-FirstPhilosophy

Enact a professional developmentprogram that is coupled with asystem that ensures adequate payfor a well-trained workforce

Ensure that professional development supports andstrengthens choice programs, career academies, andother career/technical curricula to meet the needs of ourstudents while supporting the economic developmentgoals of the community

Provide intrinsic incentives to encourage thereassignment of the best teachers as measured bystudent performance and acceleration data, tounderperforming classes, schools, and students asdemonstrated by need

Provide the means by which diversity in our workforce issupported and corresponds to the diversity of the areawhere we educate children

Goal 4: Efficiency and Accountability

Streamline and reduce the levels of bureaucracy Redistribute savings and maximize limited financial

resources to be applied to a Student-First Philosophy Conduct a functional audit of the District to enable the

implementation of the Student-First Philosophy andFamily Matters initiatives. Assess each department andits purpose, expenses, and how it serves and meetsstudents needs

Strengthen the balance between academic achievementand robust student services programs that will support thesocial, emotional, and career/technical/vocational needsof students

Develop and report on efforts to provide students andteachers with up to date technology and wirelessconnectivity at each school campus to ensure the abilityto perform and compete successfully in the globalknowledge economy

Enhance the learning environment of each campus toensure top-notch facilities that are safe and encourageincreased learning opportunities which will lead to achievement

Seek parity in funding and resources among schoolsthroughout the District with a focus on strengtheningschools

Develop a School Facilities Improvement Plan that willoutline campus improvements, renovations, upgrades andmore

Create a transparent, online reporting tools that tracksdistrict-wide and school expenditures and performancesmeasures

The School District of Palm Beach County

Goal 5: Community Engagement

Develop a robust Community Engagement andEmpowerment effort that provides meaningful opportunitiesfor volunteers from stakeholder groups including business,civic, and social organizations to support the Student-FirstPhilosophy and Family Matters efforts

Create a multi-year, multi-faceted campaign to engagepartners in creating a world class education systemdemonstrate the return on investment economically andsocially to partner organizations

Regularly acknowledge and reward the participation ofvolunteers and partner organizations

Ensure that there are role models and mentors whorepresent the diverse student body and relate to thestudents and families with whom they are working

Ensure that principals, administrators, and teachers haveprofessional support from the community to assist withprofessional development, management skills, and theStudent First Philosophy

Continually reach out to community organizations-social,civics, business, faith-based, and others to inform andrecruit assistance for students and school personnel

Explore ways to develop mutually beneficial opportunitiesthat support community efforts such as the Six Pillars ofFloridas Future Economy from the Economic Council ofPalm Beach County

Create and maintain an advisory council to provide adviceand counsel in support of choice programs, career,academic, and other career/technical curricula that meet theneeds of our students while supporting the economic goalsof the community

Goal 6: Communications Campaign

Commence with a communication strategy that targetsstudents and families, the district workforce, externalstakeholder groups, and the public

Outline the efforts underway to create Student-FirstPhilosophy and Family Matters initiatives and the resourcesavailable to students and families

Highlight the best managerial practices implemented andreward staff in order to help build morale and demonstrate acommitment to the new initiatives

Illustrate the successes of the District as well as recognizethe performance gap and unmet needs within the District

Promote a message of success and continued efforts toachieve the Districts mission to attain its vision

Ensure that the campaign includes efforts for principals,teachers, administrators, and others to become regularlyengaged in social, civic, business, and faith-basedorganizations.


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District Vision, Mission, and Principles

Our Vision

The School District of Palm Beach envisions a dynamic collaborative multicultural community where education and lifelong learning are valued and supported, and all learners reach their highest potential and succeed in the global economy.

Our Mission

The School District of Palm Beach County is committed to providing a world-class education with excellence and equity to empower each student to reach his or her highest potential with the most effective staff to foster the knowledge, skills, and ethics required for responsible citizenship and productive careers.

Guiding Principles

The School District of Palm Beach County values the following principles as demonstrated through its operations, instruction, and learning environment.

Community Cultural Sensitivity Diversity Equity Ethics Excellence Family Honesty Inclusion Knowledge Parity Professional Development Professionalism Respect Skill Building Social and Emotional Development Trustworthiness


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FY 2016 Budget Overview

District Overview The School District of Palm Beach County, Florida serves the student population of Palm Beach County, in southeast Florida. Palm Beach County covers a geographical area of over 2,300 square miles and is home to over 1.3 million people. Geographically one of the largest counties in Florida, its communities are diverse, encompassing urban, suburban and rural communities. As the 5th largest school district in Florida and the 11th largest in the nation, the School District is expected to serve approximately 187,830 students during the 2015-2016 school year. The School District operates 183 schools: 107 elementary, 33 middle, 22 high, 1 K-12, 1 intermediate, 1 middle/high, 14 alternative, 2 special education centers, and 2 adult and community education. There are 51 charter schools in Palm Beach County, which utilize public education funds and are run by independent boards. The School District serves a diverse student population. Over 150 languages and dialects are spoken by our students. The Department of Exceptional Student Education (ESE) assists the schools by providing a free and appropriate public education for all students with disabilities ages 3 through 21. As of August 2015, there were 39,831 students for whom the ESE Department must ensure a Free and Appropriate Public Education through the provisions of each students Individualized Education Plan and Educational Plan (for gifted students). Of the total, 29,723 are eligible for services under the Individuals with Disabilities Education Act. Approximately 56% of our students participate in the national free and reduced lunch program. When comparing statewide assessment and school grade results, Palm Beach County is a top performing large urban school district in Florida. Palm Beach County has a higher percentage of "A" and B district-operated elementary and middle schools compared to the state and the states largest urban school districts, according to the 2014 school grades. High school grades are not published until December of each school year. The District has 417 National Board Certified teachers. Over 37% of our teachers have masters, specialist, and doctorate degrees. Our teacher salaries, ranging from $39,500 to $75,230, are among the highest in Florida. In addition to K-12 education, the District is a vital community resource. Fee-supported afterschool opportunities and care are provided for more than 19,000 students in 99 of our District elementary schools. Camp programs are provided in approximately 70 of our schools throughout spring and summer breaks. There are twenty-eight (28) community schools which include a Virtual Community School providing on-line instruction. Adult and Community Education programs provide opportunities to thousands of students and county residents each year. Last year, the adult academic programs served a total of 18,957 students in the ESOL, ABE/GED and adult high school programs. This is an 11% increase from the previous year. Our community school programs provided classes for fun and personal enrichment that served 21,000 residents. Many of our school sites are leased to community organizations, for after-hour and weekend activities. School buildings are also utilized as voting polls and hurricane shelters.


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Guide to the Budget

FY 2016 BUDGET The total budget for all funds for FY 2016 is $2.3 billion. This includes a General Fund operating budget of $1.7 billion and a Capital Projects budget of $361.6 million. The General Fund is used to budget for the majority of the Districts daily operations. Revenues for the General Fund are derived from State funding and local property tax levies. The Capital Fund is used to record the cost of new and remodeled schools and maintenance and equipment. The revenue source is local property tax levies. Other funds utilized by the District are: Debt Service, Special Revenue-Other, Special Revenue-Food Service, Special Revenue-Race to the Top and Internal Service Funds. The Debt Service fund budget for FY 2016 is $258.4 million. Revenue for the Debt Service Fund consists of transfers from the Capital Fund and federal and state. The Debt Service Fund is used to pay the principal and interest due on financial obligations incurred to carry out Capital Fund projects. Special Revenue-Other Funds account for revenue received from Federal, State and Local sources. The largest grants are the entitlement grants from the Federal government, such as Titles I, II, and V, and the IDEA grants. The FY 2016 budget is currently $110.0 million and will grow throughout the year, as additional funding and new grants are received. The Special Revenue-Food Service Fund tracks food service operations at schools. The National School Lunch Program provided by the Federal government and student lunch fees together fund the school lunch program. The FY 2016 budget is $114.4 million. Internal Service Funds, which are not included in the district budget totals, account for the Districts self-insurance of employee health benefits and auto, general and workers compensation liability. The self-insurance fund records premium revenues and claim costs. The FY 2016 budget totals $259.0 million. REVENUE SOURCES FOR OPERATING EXPENSES Total Statewide Funding for K-12 School Districts State funding to support school districts is provided by legislative appropriations. While a number of tax sources are deposited in the States General Revenue Fund, the predominant tax source is the 6% state sales tax. The major portion of state support is distributed under the provisions of the Florida Education Finance Program (FEFP). For FY 2016, statewide appropriations for the FEFP total $19.7 billion for student enrollment associated with the 180 day regular school year and students in juvenile justice programs during the summer.


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Guide to the Budget

A separate appropriation of $404.8 million is allocated for Workforce Development, which funds adult vocational and adult general education. Statewide, proceeds from the FY 2016 Florida Lottery are used to finance the School Recognition Program in the amount of $134.6 million, the same allocation as FY 2014 and FY 2015. The state also allocates $3.0 billion to meet class size reduction requirements. Each districts share of the State allocation is primarily determined by enrollment and the base student allocation amount. The FY 2016 FEFP calculation for the School District of Palm Beach County is shown in the General Fund section. FEFP revenue for the District is up $71.6 million compared to year-end FY 2015. A complete summary of general fund sources can be found in the General Fund Section. Local Revenue Local revenue for school support is derived almost entirely from property taxes. Each of the 67 school districts in the state is a countywide district. To receive state funding under the Florida Education Finance Program, each governing school board must levy the required local effort millage rate set by the State. The Legislature set the required local effort at $7.6 billion for FY 2016, maintaining the average millage across the state of 4.984 mills from 5.089 the previous year. Each districts share of required local effort is determined by a statutory procedure initiated by certification of district property tax valuations by the Department of Revenue. Certification occurs no later than two working days before July 19. Then, not later than July 19, the Commissioner of Education certifies each districts required local effort millage rate. The rates are determined by dividing the dollar amount of required local effort by 96 percent of the aggregate taxable value for each district. Certifications vary due to the use of assessment ratios designed to equalize the effort on the FEFP of differing levels of property appraisal in the counties. Millage rates are also adjusted, if necessary, to ensure that required local effort does not exceed 90 percent of a districts total FEFP entitlement. Revenue for Capital Outlay and Maintenance Schools boards may levy up to 1.500 mills, for new construction and remodeling, equipment, vehicles and maintenance. This millage rate was reduced from 1.750 mills in FY 2009 to 1.500 mills in FY 2010. Discretionary Millage In FY 2010, the Legislature authorized an increase in the discretionary millage to allow districts to levy up to 0.748 mills, of which up to .25 mills may be allocated for capital use. The District is allocating the full 0.748 millage for FY 2016 for operating use.


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Guide to the Budget

Voter-Approved Operating Millage The Legislature authorized an additional 0.250 mills for critical needs for two years: FY 2010 and FY 2011. With the expiration of critical needs millage, the district placed a referendum for 0.250 mills in November 2010 that was renewed by the voters in November 2014 for four years running from July 1, 2015 through June 30, 2019. BASIS OF BUDGETING The Financial and Program Cost Accounting and Reporting for Florida Schools manual established the modified accrual basis of accounting as the standard for governmental fund budgeting and reporting. All Florida school districts must adhere to this standard. Using the modified basis of accounting, an encumbrance system is used to charge each purchase order, salary commitment, or other expenditure to a particular appropriation (fund/function/object). Encumbrances are relieved when paid, canceled, or expensed and recorded as a liability. Budgetary control is maintained at the fund/function/object level. Each principal and department head is responsible for their respective budget. Expenditures in excess of budgetary appropriations are not authorized. Budget appropriations are amended when necessary to meet critical needs as they are identified. A summary of budget amendments is prepared on a monthly basis and submitted to the School Board for approval. This allows flexibility and facilitates the best use of limited resources. A budget for all funds is adopted by the School Board in September and amendments are made to all funds throughout the year. Final amendments are prepared at year-end to complete the budgetary cycle.

BASIS OF ACCOUNTING The modified accrual basis of accounting is utilized for all funds except proprietary funds. Revenues are recognized in the accounting period in which they become both measurable and available. Measurable means the transaction amount can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Significant revenues susceptible to accrual include ad valorem taxes, reimbursement-type grants and interest on investments. Expenditures are recorded when the fund liability is incurred. However, exceptions include the amount of unmatured principal and interest on general long-term debt, compensated absences, OPEB, claims and judgments and certain prepaid items which are recognized when due/paid. In applying the susceptible to accrual concept to revenues from federal and state sources, the legal contractual requirements of the individual programs are used as guidance. There are, however, essentially two types of these revenues. In one, monies must be expended for the specific purpose or project before any amounts will be received by the School District; therefore, revenues are recognized based upon the incurrence of the expenditures. In the other, monies are virtually unrestricted as to purpose of expenditure and are usually revocable only for failure to comply with


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Guide to the Budget

prescribed legal and contractual requirements. These resources are reflected as revenues at the time of receipt or earlier if the susceptible to accrual criteria are met. In all cases, monies received before the revenue recognition criteria have been met, are reported as deferred or unearned revenue. The accrual basis of accounting is utilized for proprietary funds. Revenues are recognized when earned and expenses are recognized when incurred. Currently, the Districts only proprietary fund is the Internal Service Fund. The District has two Internal Service Funds. The Health Internal Service Fund records the Districts health self-insurance revenues and expenses. The Worker's Compensation and Liabilities Claims Fund records the premiums and claims associated with the District's Worker's Compensation, Auto and General Liabilities. FUND STRUCTURE The accounts of the District are organized on the basis of funds and account groups. The individual funds account for the governmental resources allocated for the purpose of carrying out specific activities in accordance with state and federal requirements. Governmental funds used by the District are as follows: Governmental Funds: Governmental funds account for the educational programs and activities of the District and are organized by type of revenue and use of funds as required by statute. General Fund: The general fund serves as the primary operating fund of the District.

It accounts for all financial resources except those required to be accounted for in other funds. The primary source of funding is the Florida Education Finance Program.

Special Revenue Funds: Special revenue funds account for specific revenue

proceeds, other than major capital projects, which are legally restricted or committed to expenditures for specific purposes. Federal, state and local grants are placed in this fund.

Debt Service Funds: Debt service funds accumulate resources to pay the interest

and principal obligations associated with long-term debt. Capital Projects Funds: Capital projects funds account for financial resources used

for the acquisition, construction, or renovation of capital facilities including land, equipment, and vehicles.

Proprietary Funds: Proprietary funds are used to account for ongoing activities which are

operated and financed in a manner similar to those found in the private sector. Internal Service Fund: The District utilizes two internal service funds to self-insure

employee health benefits and auto/general/workers compensation liability. The self-insurance funds record premiums charged to other operating funds as revenues and expenditures related to the cost of claims.


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COMPARISON OF BUDGET - ALL FUNDS

Amended Proposed %2014-2015 2015-2016 Increase/ Increase

Fund Titles Budgets Budgets (Decrease) (Decrease)General Fund 1,652,647,924$ $1,710,056,786 $57,408,862 3.47% Special Revenue - Food Service 105,552,666 114,402,641 8,849,975 8.38% Special Revenue - Other * 140,393,010 110,016,630 (30,376,381) (21.64%)Special Revenue - RTTT 218,098 0 (218,098) (100.00%)Debt Service** 245,024,018 258,381,491 13,357,474 5.45% Capital Projects 390,531,143 361,615,531 (28,915,612) (7.40%)

Subtotal $2,534,366,859 $2,554,473,079 $20,106,220

Less Transfers: (237,858,458) (248,788,036) (10,929,577) 4.59%

Total Budget - All Funds $2,296,508,401 $2,305,685,044 $9,176,643 0.40%

*Not all Federal and State funds have been received. It is anticipated the FY2016 revenue will be similar to FY2015.** Excluded FY2015 debt refunding of $599,419,288 for comparability.

$0

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

$1,600,000,000

$1,800,000,000

General Fund Special Rev -Food (410)

Special Rev -Other (420)

Special Rev -RTTT (49X)

Debt Service (200) Capital Projects(300)

2014-2015 to 2015-2016

2014-2015 2015-2016


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Proposed 2015-2016 District BudgetSummary of All Funds

ESTIMATED REVENUESGENERAL SPECIAL

REVENUES FUND REVENUEFederal 6,167,000$ 180,685,429$ State Sources 481,167,111 1,301,000 Local Sources 1,012,658,041 14,868,056 TOTAL SOURCES 1,499,992,152$ 196,854,485$ Transfers In 92,932,324 Other FinancingNonrevenue Sources:Fund Balances - July 1, 2015 117,132,310 27,564,786 TOTAL REVENUE,TRANSFERS & BALANCES 1,710,056,786 224,419,271 Less Transfers

TOTAL REVENUE & BALANCES 1,710,056,786$ 224,419,271$

PROPOSED APPROPRIATIONSAPPROPRIATIONSInstruction 1,104,673,721$ 47,563,714$ Student Support Services 46,761,389 11,463,952 Instructional Media Services 19,347,613 1,487 Instruction and Curriculum Development Services 34,776,257 17,974,024 Instructional Staff Training 9,268,177 28,406,910 Instruction-Related Technology 8,957,523 85,064 Board 7,881,260 54,948 General Administration 7,176,941 3,146,125 School Administration 97,821,404 13,209 Facilities Acquisition and Construction 519,265 Fiscal Services 6,229,781 Food Service 21,744 87,750,234 Central Services 14,575,451 907,058 Student Transportation Services 49,055,237 362,612 Operation of Plant 126,938,831 14,402 Maintenance of Plant 75,702,757 2,637 Administrative Technology Services 8,718,182 Community Services 41,447,249 20,489 Debt Service 150,000 TOTAL APPROPRIATIONS 1,660,022,782$ 197,766,864$ Transfers Out 34,004 Fund Balances - June 30, 2016 50,000,000 26,652,407 TOTAL APPROPRIATIONS,TRANSFERS & BALANCES 1,710,056,786 224,419,271 Less Transfers

TOTAL APPROPRIATIONS & BALANCES 1,710,056,786$ 224,419,271$


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Proposed 2015-2016 District BudgetSummary of All Funds

ESTIMATED REVENUESDEBT CAPITAL TOTAL

REVENUES SERVICE PROJECTS ALL FUNDSFederal 3,258,963$ 190,111,392$ State Sources 4,529,892 10,517,248$ 497,515,251 Local Sources 242,597,964 1,270,124,061 TOTAL SOURCES 7,788,855$ 253,115,212$ 1,957,750,704$ Transfers In 155,821,708 34,004 248,788,036 Other Financing 21,387,296 21,387,296 Nonrevenue Sources:Fund Balances - July 1, 2015 94,770,929 87,079,019 326,547,044 TOTAL REVENUE,TRANSFERS & BALANCES 258,381,491 361,615,531 2,554,473,079 Less Transfers (248,788,036)

TOTAL REVENUE & BALANCES 258,381,491$ 361,615,531$ 2,305,685,044$

PROPOSED APPROPRIATIONSAPPROPRIATIONSInstruction 1,152,237,436$ Student Support Services 58,225,341 Instructional Media Services 19,349,100 Instruction and Curriculum Development Services 52,750,281 Instructional Staff Training 37,675,086 Instruction-Related Technology 9,042,587 Board 7,936,208 General Administration 10,323,066 School Administration 97,834,613 Facilities Acquisition and Construction 112,861,499$ 113,380,764 Fiscal Services 6,229,781 Food Service 87,771,978 Central Services 15,482,509 Student Transportation Services 49,417,849 Operation of Plant 126,953,234 Maintenance of Plant 75,705,394 Administrative Technology Services 8,718,182 Community Services 41,467,738 Debt Service 139,402,849$ 139,552,849 TOTAL APPROPRIATIONS 139,402,849$ 112,861,499$ 2,110,053,994$ Transfers Out 248,754,032 248,788,036 Fund Balances - June 30, 2016 118,978,642 195,631,049 TOTAL APPROPRIATIONS,TRANSFERS & BALANCES 258,381,491 361,615,531 2,554,473,079 Less Transfers (248,788,036)TOTAL APPROPRIATIONS & BALANCES 258,381,491$ 361,615,531$ 2,305,685,044$


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Revenue, Expenditures, and Fund Balances

Three Year History - All Funds

PROPOSED

FY 2014 FY 2015 FY 2016 BUDGET

REVENUE

Federal 191,122,036$ 191,390,574$ 190,111,392$

State Sources 520,989,974 503,568,782 497,515,251

Local Sources 1,113,441,006 1,207,801,699 1,270,124,061

TOTAL SOURCES 1,825,553,015$ 1,902,761,055$ 1,957,750,704$

Transfers In 250,043,031 237,858,458 248,788,036

Other Financing 61,012,167 (15,387,092) 21,387,296

Fund Balances, Beginning 486,189,804 387,751,169 326,547,044

TOTAL REVENUE,

TRANSFERS & BALANCES 2,622,798,017 2,512,983,590 2,554,473,079

Less Transfers (250,043,031) (237,858,458) (248,788,036)

TOTAL REVENUE & BALANCES 2,372,754,987$ 2,275,125,131$ 2,305,685,044$

EXPENDITURES

Instruction 1,045,988,716$ 1,057,892,410$ 1,152,237,436$

Student Support Services 54,552,151 55,805,909 58,225,341

Instructional Media Services 18,763,331 18,205,356 19,349,100

Instruction and Curriculum Services 50,594,723 51,342,437 52,750,281

Instructional Staff Training 42,762,091 38,105,141 37,675,086

Instruction Related Technology 8,269,460 8,829,365 9,042,587

Board 6,043,497 6,828,285 7,936,208

General Administration 9,138,268 8,997,897 10,323,066

School Administration 96,410,699 96,771,973 97,834,613

Facilities Acquisition and Construction 72,798,998 70,288,545 113,380,764

Fiscal Services 5,816,127 5,893,060 6,229,781

Food Service 73,476,319 76,504,875 87,771,978

Central Services 15,244,789 15,434,056 15,482,509

Student Transportation Services 46,975,855 47,270,680 49,417,849

Operation of Plant 124,939,541 126,187,550 126,953,234

Maintenance of Plant 67,402,584 69,681,092 75,705,394

Administrative Technology Services 6,237,637 7,084,697 8,718,182

Community Services 36,143,276 37,170,533 41,467,738

Debt Service 186,348,745 150,284,226 139,552,849

TOTAL EXPENDITURES 1,967,906,806$ 1,948,578,087$ 2,110,053,994$

Transfers Out 237,043,008 237,858,458 248,788,036

Fund Balances, Ending 404,848,181 326,547,044 195,631,049

TOTAL EXPENDITURES

TRANSFERS & BALANCES 2,609,797,995 2,512,983,590 2,554,473,079

Less Transfers (237,043,008) (237,858,458) (248,788,036)

TOTAL EXPENDITURES & BALANCES 2,372,754,987$ 2,275,125,131$ 2,305,685,044$


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General Fund Food Service Other Debt Service Capital Total

117,132,310$ 27,479,841$ 84,944$ 94,770,929$ 87,079,019$ 326,547,044$

+ Revenue 1,592,924,476 86,922,800 109,931,685 163,610,562 274,536,512 2,227,926,035

- Appropriations 1,660,056,786 87,750,234 110,016,630 139,402,849 361,615,531 2,358,842,030

50,000,000$ 26,652,407$ -$ 118,978,642$ -$ 195,631,049$

Special Revenue-Other funds are primarily reimbursement grants. As such, most of them have no fund balance

remaining at year end. The beginning and ending fund balances shown represent local grants for which the district

has received funding at the start of the grant.

The debt service budget begins each year with funding from the prior year to pay the August debt payments.

The District does not budget ending fund balances for the General Fund, with the exception of the contingency fund.

Aside from the contingency, revenues and beginning fund balance are fully appropriated to expenditure accounts. If

appropriations are fully utilized, year end fund balance will be equal to the contingency and reserved funds.

However, position vacancies and unspent allocations have averaged from $65-$89 million between FY 2013 and FY

2015. Actual General Fund balances for FY 2012 through FY 2016 (projected) are shown on page 5-11.

Beginning

Fund Balance

Ending

Fund Balance

Special Revenue

Beginning and Ending Fund Balances

By Major Fund Group

Fiscal Year 2016

Capital projects beginning fund balance represents proceeds of prior year funding that has not yet been expended

for projects in progress.

Special Revenue-Food Service fund balance is budgeted to decrease by 3% in FY 2016. The resulting ending fund

balance still maintains a financially sound position.


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Superintendent

of Schools

Students, Parents & Community of Palm

Beach County

School Board

Inspector General

Advisory Committees Audit

Academic (AAC)

Advisory Boundry Council (ABC)

Budget

Construction (CORC)

Diversity & Equity

ESE

Finance

Independent Referendum

Oversite Committee (IROC)

Referendum Oversight

Sales Tax (ISSOC)

Technology (TAC)

Technical Advisory Group (TAG)

General Counsel to

the School Board

Chief Operating

Officer

Chief Academic

Officer

Risk & Benefits

Management

Budget

Education

Alternatives

Educational

Alternatives &

Intervention

Human

Resources

Labor Relations

School Police

Compensation and Employee

Services

Legislative

Liaison

Teaching &

Learning

Recruitment &

Retention

Area 1

Area 2

Professional

Standards

Purchasing/

ERP

Elementary

Education

Secondary

Education

Area 4

Area 3

Accounting

Information

Technology

Infrastructure,

System Support,

& Security

IT Enterprise

Applications

Treasury

Technical

Operations

FTE & Student

Reporting

Transportation

Services

School Food

Service

Maintenance

and Plant

Operations

Building Code

Services

Diversity in

Business

Practices

Performance

Accountability

Choice & Career

Options

Professional

Growth

Area 5

After School

Programming

Research Eval

Educational

Technology

Charters

Transformation I

Effective 09-09-2015

Support

Operations

Assesment

Early Childhood

Education

Federal

Programs

Compliance

Safe Schools

Planning &

Intergovernmental

Relations

Environmental

&Conservation

Services

ESE

Multiculture

Adult Ed

Transformation

II

Deputy Superintendent/

Chief of Schools

Chief of

Communications

& Engagement

Program

Management

08-11-15 BAT

2-17

Positions by Function - All FundsThree Year History and Comparison

FY 2014 FY 2015 FY 2016 Incr/(Decr)

Function DescriptionAmended

FTEAdopted

FTEAmended

FTEAdopted

FTEAmended FY 2015 to

Adopted FY 2016Instruction5101 Basic K-3 2,791.6 2,747.6 2,704.6 2,624.6 (79.9)5102 Basic 4-8 2,933.1 2,916.3 2,915.8 2,818.6 (97.2)5103 Basic 9-12 2,150.8 2,172.5 2,187.0 2,184.5 (2.5)5108 Jr. ROTC 31.0 31.0 31.0 32.5 1.55114 Fine Arts-Art 111.5 112.5 111.0 109.0 (2.0)5117 Fine Arts-Music 110.0 113.5 115.0 113.5 (1.5)5118 Fine Arts-PE 132.5 130.5 130.5 130.5 0.05130 ESOL 757.0 633.0 644.0 651.0 7.05150 General K-12 Classroom 464.9 470.8 465.8 494.3 28.45205 Speech/Language 315.8 371.0 376.9 345.4 (31.5)5206 Hearing Impaired 27.0 28.0 28.0 29.0 1.05207 Vision 9.0 9.0 9.0 9.0 0.05213 Gifted 402.4 422.4 403.4 389.0 (14.4)5220 Low Incidence 338.3 364.9 391.4 406.6 15.35221 Varying Exceptionalities 771.6 762.6 734.1 748.6 14.55223 Emotional/Behavior Disabled 194.6 184.5 177.5 178.0 0.55224 Intellectually Disabled 216.3 226.6 227.9 233.4 5.55225 Pre-K ESE 282.4 286.3 289.0 316.3 27.35250 ESE-IDEA grant 572.6 579.1 584.3 567.7 (16.6)5310 Vocational 6-12 222.5 229.5 230.0 223.0 (7.0)5340 Continuing Workforce Education 1.0 1.0 1.0 1.0 0.05410 Adult Education 59.4 61.4 60.2 63.2 3.05510 Pre-Kindergarten 186.9 238.6 234.8 240.0 5.35511 Pre-K Admin 17.5 18.5 19.5 19.6 0.15930 Community School-Fee Supp 0.5 0.0 0.0 0.0 0.05940 Non-Public School Support 0.0 0.0 0.0 0.0 0.0Total Instruction 13,100.2 13,111.1 13,071.6 12,928.3 (143.2)

Instructional Support Services6112 Attendance and Social Work 110.9 108.7 109.1 112.3 3.36122 Guidance Counselors 342.0 341.5 346.5 349.5 3.06123 ESOL Guidance Counselors 65.0 69.0 70.0 68.0 (2.0)6132 Health Services 19.0 20.0 19.5 19.0 (0.5)6142 Psychological Services 88.9 112.7 113.7 125.2 11.56152 Parental Involvement 38.2 31.2 27.3 30.6 3.36192 Other Pupil Personnel Services 66.3 70.3 71.0 58.0 (13.0)6202 Instructional Media Services 302.8 296.1 290.1 291.8 1.76302 Curriculum Development 163.8 166.1 167.1 161.1 (6.0)6303 ESE Contacts 252.9 256.4 259.5 258.4 (1.1)6304 ESOL Contacts 138.0 137.0 139.0 137.0 (2.0)


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Positions by Function - All FundsThree Year History and Comparison

FY 2014 FY 2015 FY 2016 Incr/(Decr)

Function DescriptionAmended

FTEAdopted

FTEAmended

FTEAdopted

FTEAmended FY 2015 to

Adopted FY 2016Instructional Support Services Continued6305 Alternative Ed Contact/Support 22.0 22.0 23.0 22.0 (1.0)6312 Crisis Intervention 104.0 101.0 106.0 105.5 (0.5)6402 Instructional Staff Training 429.0 384.5 392.5 368.5 (24.0)6501 Instruction Related Technology 130.0 128.0 128.0 128.0 0.0Total Instructional Support Services 2,272.6 2,244.4 2,262.2 2,234.9 (27.4)

Central Support Services7410 Facility Acq & Construction 36.7 31.5 31.5 32.0 0.57510 Fiscal Services 73.8 75.3 75.3 76.3 1.07601 SFS Admin 11.0 13.0 13.0 13.0 0.07602 SFS Operations 920.4 931.0 1,020.7 1,037.1 16.47712 Plan/Res/Devel/Evaluation 33.0 33.0 35.0 32.0 (3.0)7722 Public Information 14.6 17.0 19.0 16.0 (3.0)7731 Personnel Services 86.3 85.3 85.3 83.3 (2.0)7762 Internal Services 48.5 45.5 45.5 44.5 (1.0)7792 Other Central Services 12.4 12.4 11.8 11.7 (0.1)7802 Student Transportation 998.7 1,024.0 1,057.8 1,095.8 38.07902 Operation Of Plant 1,303.2 1,301.0 1,300.5 1,301.5 1.07903 Utilities 4.0 4.0 4.0 4.0 0.07922 Security 237.5 235.0 235.0 228.0 (7.0)8102 Maintenance 599.2 591.1 592.1 583.8 (8.3)8201 Administrative Technology Serv 70.9 68.9 70.9 66.9 (4.0)Total Central Support Services 4,450.1 4,467.9 4,597.3 4,625.8 28.5

Administrative Support Services7101 Board Members 7.0 7.0 7.0 7.0 0.07115 Board Support 46.0 46.0 46.0 50.0 4.07210 General Administration 51.2 50.3 51.3 55.0 3.77310 School Administration 1,369.3 1,368.6 1,378.5 1,373.5 (5.0)Total Administrative Support Services 1,473.5 1,471.9 1,482.8 1,485.5 2.7

Community Services9110 Community Services 251.9 248.6 251.8 251.6 (0.3)Total Community Services 251.9 248.6 251.8 251.6 (0.3)

Grand Totals 21,548.3 21,543.9 21,665.7 21,526.1 (139.6)


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The Budget Process

Fiscal Year

The school district fiscal year is July 1 through June 30.

Statutory Requirements

Palm Beach County School District participates in the Florida Education Finance Program (FEFP) which entitles the district to receive State revenues along with the funds raised from Palm Beach County property taxes. Florida Statute dictates budget adoption requirements for participation in the FEFP program. The FY 2016 budget adoption calendar is detailed on pages 3-5 through 3-6. The budget process for the current year begins months before the start of the fiscal year on July 1. Student enrollment is projected in December of each year for the following fiscal year and submitted to the Florida Department of Education. An overview of the Districts enrollment projection methodology can be found on page 3-7. The Florida Department of Education collects the projections made by each district. The Florida Legislature utilizes the enrollment projections to formulate the state K-12 FEFP education budget. FEFP funds then are allocated to the individual school districts based on the enrollment projections. Once the FEFP revenue for the District is finalized at the conclusion of the legislative session, usually in early May, the District can finalize the budget and millage rates proposed for tentative adoption in late July. Truth-in-

Special Revenue Funds

Documents

Transcript of Special Revenue Funds