##VIDEO ID:-ff7OXkXt5E## o uh thank you for being virtual and we also have uh Miss Campbell those are the two Representatives uh from the budget advisory committee that are here today um I what I wanted to let you know and we also have um Miss Branch just joined as well uh one of our new board members so right now we do not have a quorum um but I did uh clear with legal that we are allowed to proceed with the meeting for informational purposes I mean since this is the first meeting um of the budget advisory committee it is um a little bit longer than normal because we go over the complete budget process and uh so I think it's good for us to still continue the meeting um and then it will also be recorded and it will be available on the website uh as well um for those members that end up joining late because I know we do have other members that will be joining uh virtually um and um they said they might be joining a little bit later uh so I will just so we'll continue with the the meeting for informational purposes and we'll start with uh introductions um so going around the room so starting with Miss cell this pman Campbell Ro pal Beach appointed by Marsha Andrews okay Heather Frederick I'm the Chief Financial Officer uh William defra I'm the budg of operations manager in the budget office Le Evans Treasurer Nicole Smith director of federal and state programs Joseph Sanchez the Chief Operating Officer Laura Schultz the associate director for ESC to on okay and then online we have Miss Lori benino um she's the current uh Vice chair of the budget advisory committee so we won't be proceeding with the um with any of the action items today we'll just delay those until the next meeting um and we have Miss Branch Miss Gloria branch on the line as well as Miss uh Branch's uh uh representative who's going to be going to the board for approval in February um Miss Sizzle is joining as well online okay so with that we're going to get started so I'm starting with the uh FY budget development process we're going to uh start with a legislative Outlook uh just where we are uh where the State of Florida stands from an economic Outlook perspective I give an overview of how schools are funded in the State of Florida you know because that is different um across the country so an overview of how schools are funded here in the State of Florida and then understanding our District budget um going into detail with our timeline uh what the board priorities that were um discussed at the first uh board Workshop as well as the at the components of our School District budget and look looking at the the Statewide economic Outlook uh the State of Florida is required to do a long range prepare a long range Financial Outlook uh each year this Outlook goes out and and looks over a three-year period um and it's required to present be presented uh to the legislature in September of each year and then there's always an update in December U so that that Outlook is prepared by um Miss Amy Baker she's the state economist and she is the one who leads uh the office of Economic and demographic research this is the first year that this longrange financial Outlook has been negative as a result of those Esser funds those Federal Esser funds that we were receiving the state was receiving over the past several years there were there was always a surplus in this long range Outlook prior to Esser the long range Outlook always had uh a negative negative implications in in future oute years so now this is we're going back to more routine times where the state really has to to look at what initiatives that they're planning to adopt look at what that long range Financial impact of those um of the implications of approving those um because you want to make sure that whatever expenditures and spend uh related to whatever is approved by the legislature that there's enough Revenue in order to cover that in those future years and looking at uh the General Revenue uh the Amy Baker the office of Economic and demographic research was very conservative and what their uh Revenue estimates were for the general fund um at the state level um in those future out years it's ranging from you know point a little less than 1% um to a high of 4% when you look at 2027 um Miss Baker said she is being very conservative and her estimates of General revenues just because she's not sure truly what's going to happen um and when you're looking at State General Revenue of you know $50 billion doar 2% is still a pretty significant amount um so although they look uh it looks conservative it is still a healthy uh increase uh the GDP our state GDP is returning back to normal everything is going back to Norm normal uh back to where it was prior to um the you know the pandemic um there were some there are some changes in our state of Florida you know economy in the sense that in the past or pre uh covid our annual wage was always much less than what the national average was and but now it's creeping up to closer to the national average and that is putting now additional pressure on the state budget because the state has a lot of uh contracted service providers and that's just embedded uh within their their state budget so as the that annual wage is increasing in that service sector um it is putting additional pressure on the state uh budget um been looking at the population population is um continued is uh projected to continue to grow at actually three times the national average and it's growing more from people moving into the state state of Florida is historically you know more of a higher age state so when you're looking at the the the people uh moving in um you know it's we are seeing people moving in with uh young that are coming in with younger children and so the state reserves are projected to decrease um they were a high of 29% um the state reserves are projected to go down to 12.7 billion or 26% and are expected to continually um decline each year um but the focus from EDR is that it needs to be more strategic the declines of the state reserves that is more on onetime type uh initiatives and not recurring initiatives because I want to make sure that they keep the state budget structurally balanced uh which is what our goal is as well State of Florida also has a balanced budget requirement where they are not allowed to pass a budget that is not uh balanced all right so in looking at um the Outlook uh by critical needs uh so the the long- range Financial Outlook is prepared with a lot of assumptions and there are two uh the top two critical drivers of the state budget in terms of need is education as well as health and human services and within education it's the uh ffp program and which is how K12 is funded in the State of Florida and within Health and Human Services the main driver is Medicaid and so when you look at uh the top uh Gray Bar you can see that the assumptions being used for ffp is an enrollment increase uh in FY 26 of 51,000 students an FY 27 is 35,000 students and an FY 28 is 51,000 students so using an enrollment increase of 51,000 students in FY 26 assu assuming a per student funding increase of 4.2% which is the average increase in per student funding the last three years the need in FY 26 would be almost a billion dollars when you look in FY 27 uh looking at enrollment increase of uh 35 ,000 students uh and assuming that same increase that there's going to be another increase of 4.2% in per student funding that additional and so not only on the enrollment increase of the 35,000 but also the enrollment within the ffp program um the increase of 4.2% equates to about $800 million so that's just for that year it's and so you have to add up each year for it to be cumulative because those are recurring increases each year and when you look at the Assumption being used of of the 50,000 and 35,000 students that is primarily um increase in voucher and private schools um about you know 60 to uh 80% of that increase each year is uh for uh voucher students when you look at and you consider those you know the assumptions you look at you know the using the average the increase in per student funding for the average of the last three years FY 23 was 4.96% increase in per students funding FY 24 was 4.9% FY 25 was 2.75% so I think the Assumption of the 4.2% um especially since the dist not the district but the state is facing a shortfall in those out years if they were to continue if the legislature were were continue to fund at a an increase of 4.2% each year it's not likely that we're going to see an increase uh even close um to that 4.2% uh when you look at the U the Medicaid Program um these are are also just oneyear um increases um the increases in the Medicaid pro pro uh program are primarily due to uh medical inflation the increase in the cost of Health Care uh not as much due to increase in case load and um and and members being added to the Medicaid Program so and that's why we're seeing a decline um in the projected increases each year uh because the office of Economic and demographic research thinks that those Health that the increases in health care are going to start to uh stabilize as we go out through FY um 28 so if you take those uh the cost of the top two drivers um those are embedded within the increases within um when you look at the chart below so when you look at the chart below you can see that prek-12 education is highlighted in red as well as Health and Human Services So within the need for prek 12 education of the 1.3 uh billion almost a billion of that is related to ffp in 26 800 million in 27 and a billion in 2028 within Health and Human Services you can see the nearly 2 billion need in in 26 1.2 billion of that is related to um the Medicaid Program so in looking at um FY 26 at the state budget the total need for all critical and high priorities is 7.5 billion um and the recurring amount of that 7.5 billion is 3.8 billion when you move on to FY 27 the total need is 6.9 billion of that 3.36 billion is recurring which we would then have to add the recurring amount from FY 26 so that's why we get to the the total um need um at the state level is a total of $ 32 billion when you look at the recurring need of the 21 billion plus onetime initi Ives of 10 billion and so that's based on the actual needs of the dist of the state and this chart summarizes and takes well what are the total revenues available each year based on the the projected increases in general revenues um and breaks out those critical needs from the previous slide as well as those other high priority drivers um to come up with whether the state is going to end up having a surplus or a deficit so applying all of those assumptions for all the critical needs that the state has in year one the state ends ends up having a surplus of $2 billion but once you move into year two and you take into consideration those recurring increases from year one that are rolling into year two we don't have um enough funding in order to um cover uh we don't have enough recurring uh Revenue to cover the recurring increases in those expenses so you can see there's a deficit of 2 point a projected deficit of 2.8 billion almost a billion of that or 800 million of that is recurring and two billion is not non-recurring so one-time initiatives and when you move into year three taking into consideration all of those critical and high priority needs this and we keeping all the assumptions the same the state would be facing a $7 billion uh deficit but now look at that recurring deficit the recurring deficit jumps up to 2.9 billion and the non-recurring is at four so that recurring one is really the one that we have to be looking at and if you have a recurring deficit then that means your budget is structurally imbalanced so you're spending more than what you're making than what you're you're bringing in and you know at the the uh State Legislative budget committees um the tone at those meetings was that it's better um to make those um adjustments now in this year rather than Kick the Can down the road and have to make significantly more Cuts in year two and then in year three so instead of keeping all the assumptions the same we need to try to learn to live within our means now uh so I don't want to be too Doom and Gloom I do anticipate that there will still be an increase in per student funding I just don't anticipate that that increase is going to be the 4.2% that's built into the um the current long range Financial Outlook it's probably going to be closer to 2% um so in addition to that long-range Financial Outlook that's required to be uh submitted uh each year to the legislature uh the Florida Department of Education is also required to submit a legislative budget request um the Florida Department of Ed uh I mean normally the legislated budget request used to be you know in when I first started because I've been here a while that used to be the high water mark you know that was the what we were the legislature was trying to we would hope that the legislature would attain but never did um it shifted over the years where the legislative budget request is actually you know the minimum of what we can expect and the legislature usually comes in and and comes in at a much higher amount um but I do think this year that the 1.7% increase in per student funding is much more realistic of where we're going to end up with our increase in per student funding this year so when you look at funding for Florida uh school districts uh there's a constitutional um uh amendment that education that we have equalized funding across the State of Florida so regardless of of where your child is in the State of Florida whether they're in a high property tax uh District like Palm Beach County or low property tax District you know up in um Central or Northern Florida um they should receive and deserve to receive the same amount of funding um and so what what the state does when you look at our our funding um are it's funded through the Florida education Finance program and the primary revenue drivers of the uh the ffp program are property taxes and state sales tax and that's the way the state is able to to equalize um the funding um uh across the state is by equalizing the amount of state revenue receive so that each County receives the same amount of money per student so when you look look uh Statewide uh 46% of the U of the uh education K12 education is funded through property taxes and 54 is funded through the um state general revenues um so that's the looking at the Statewide average when you look in Palm Beach County though and you look at our funding 65% of it comes from local property taxes whereas 35% of it is coming from State funding so since we have since we're a higher property value uh District we receive more of that per student funding proportionally from our uh local property taxes and so the state then reduces the amount of money that they give us so that we end up getting the same amount of money per student uh when you look at um state general revenues um because the largest portion of Education when you look at that box in the upper right hand um corner it's a little fall but when you look at the the total education budget it's 32 billion across all funds 22 billion of that or almost 23 billion is coming from um state general revenues and when you look at state general revenues that's that chart in the lower right hand corner 75% of that comes from a state sales tax and so that's why the state sales taxes is so important since we don't have a um income tax in the in the state of Florida Florida and when you look at our our millage rate you know since the state is the one who's setting our per student funding they're the ones who also set our millage rate um at each of our districts as well so the millage rate is either set by um uh the state legislature or it's capped um so the local school board has very limited authority over the millage rate that is applied um and that is because they want to ensure that we have the equalized funding um across all districts uh so we the one item is the voted millage and the the voted millage is it requires a voter approval um our operating millage requires voter approval every four years uh so property values are very important component uh when you look not only in Palm Beach County but Statewide in uh the health of the education funding so when you look at the increases in um property values we had pretty healthy increases um going back to 23 24 of you know 22% 15% uh we are going back to uh we're not going to see double digit double digit increases um in those out years you know the average over the next um six years we're looking at about 4.6% um the projected increase in property values this year is 4.4% um you know when you're looking at EDR and um the assessments of uh taxable values they are usually on the low end and usually do come in um a little bit higher I believe in FY 25 the estimate was around 5% it ended up coming in at 7% um so we are looking at an increase this year of 4.4% um I do expect that it will be you know likely a little bit higher than that but we don't there is no um a direct line that if we see a 22% increase in um in property values we're not going to see a corresponding 22% increase in per student funding and that's because it's like I said it's equalized across the state it just means we're going to end up receiving less um State funds and this chart goes to show um you have the the Blue Line uh shows the change in taxable value each year and the gray line is the change in per student funding so you can see they really you know don't align you know going back to 2019 the increase in uh property value 5.4% yet the increase in per student funding was 1.5 you know increase in per student U of property Valu is a 22% the increase in state funding was 5% you so it the increase in the um the change in property values we've had in in Palm Beach Val Palm Beach County really doesn't align with the change in per student funding when you look at the ffp uh the way that the ffp is calculated is based on enrollment and then uh there's a factor that's applied um to enrollment uh to for those students that have additional needs uh so there are additional factors let me just go forward one slide um these are the different factors um that are assessed each year to determine uh weights based on uh actual expenditures from all the districts for the last three years so the expenditures um are averaged out um to determine what is the actual spend on each of the categories of students and then there's a weight that's applied um based on that average spend um and it's adjusted uh each year so you can look that a a student in K3 um is not worth one they're worth right in 2025 they were worth 1.11 and so with a K through Stu K through three student you know they are lower class size requirements so they're it's determined that they need they have an additional need um the four eight students uh those they are weighted as a one uh 1.0 uh your high school students are weighted just a little bit less than 1.0 uh your Esau students they're weighted 1. one92 um e uh your ESC students and these are your your high needs ESC students um they're three three and a half times uh what the the value of a the weight of a regular student so that's how much more additional need um the uh the the state has determined is necessary for those students and your highest uh ESC students um special needs students is nearly six times that of a regular student um and then there's Career Education so when you take those uh weights see if I can go those weights go into the program cost Factor um and then so our our regular looking at just our our regular FTE of 210,000 you multiply that times that uh average cost factor to come up with the weighted um students in Palm Beach County and when you the weighted students in Palm Beach County includes all district operated Charter Schools as well as vouchers so when we're projecting enrollment we have to project enrollment not only for uh District operated schools but also Charter Schools as well as uh vouchers you then take that now weighted students you multiply that times the base student allocation uh the base student allocation is what's standard um across all districts and then the state does apply does differentiate between districts in the sense that it is there we have a higher cost of living in Palm Beach County than some of the other counties in the State uh so we take that base student allocation and we're able to multiply it by 1 048 um and that is to take into consideration um that it there is a higher cost of living in um in Palm Beach County that District comparable wage factor is also adjusted each year based on um a three-year average you then have your base funding and then after your base funding you add in certain um categoricals so we have an educational enrichment which used to be um called um uh SII there were a lot of changes uh within uh the categoricals and um some of those were embedded within the base student funding uh but what these categoricals are that are um added on uh the state specifies specifically how the funds um should be spent educ educational enrichment is U one of the more flexible one um because it's you know any activity that will provide educational enrichment to the students uh there's also an amount set aside for ESC guaranteed allocation and that ESC guarantee um is required to be spent on ESC students only and so that um and it doesn't really increase based on um the ESC students U it's the lower level ESC students U if you remember with the uh I didn't point out but with those program factors of those High needs ESC students those are your level um fours and fives um so there's uh the ESC students are broken out uh into five different levels in terms of need um so there's additional um State funding received per student on the two highest levels the four and five and the one through three um uh ESC students are funded through additional needs are funded through this ESC guarantee not based on the actual number of students or number of students when within each of the categories of 1 through three um safe schools allocation uh is for uh uh uh school safety um that's to fund the Mandate of the one officer um per school it's nowhere near uh what it needs to be in order to fund um uh the true cost of security so in Palm Beach County uh we spend over U $45 million on um school security and um officers at the school sites uh when the district including the the uh the charter allocation is receiving 19 million U so the district share of that is about 17 million and we spend well you know more more than double that amount on uh school safety um that doesn't even include the additional um uh funding that we that's in the referendum uh then there's the mental health allocation um to be U uh spent on um primarily we're using that on uh collocated U Mental Health Services um so there's specific requirements within um uh the the uh State Board of Education rules that state how this funding uh must be used we have to track it separately within our system and make sure we spend it only on that specific purpose uh we receive a small amount for DJJ supplemented funding connected students small amount um and EST State funding discretionary um supplement um which helps uh offset uh the increase in uh the vouchers um to ensure that those private school students are not receiving State uh local um millage dollars um there's also additional funding given for transportation and if there are any adjustments uh to uh the uh the ffp because the when the state U sets what the budget is going to be for Education they set it based on a certain enrollment if that enrollment ends up coming in lower there's no change to the per student funding if enrollment comes in higher than what was projected there's a reduction that's given to and allocated to each School District um so that because there's only a fixed amount um that's allocated for education purposes so that pration to appropriation was a projected uh potential reduction um in funding to to then end up with what is the total amount that um we received in Palm Beach County uh for uh ffp funding when you look at education across the country Florida Rings 46th in the country in terms of per pupil funding um this is as of fy22 um and it's based on the US Census Data U that all districts are are required to report uh so if you look in the uh the average if you were to look at the average uh per pupil spending across the country it would be 15,638 in Florida uh we're that green bar there um and we're at 11,076 and if you look at Palm Beach and you add in our referendum we would be at 12298 and so that would uh bring us up to 39th in the country in terms of funding uh so we're very thankful to have the support of the voters um in Palm Beach County because that allows us to to give more do more um which is still well less than the average across the country but we're very thankful to the voters to be able to have that opportunity to be able to give more to our students here in Palm Beach County when you look at the allocation uh the per student allocation um going back to um 2008 we had a pretty significant reduction in per student funding we are well below where we should be um when compared to inflation so in looking at uh fy2 our per student funding was 9,513 if we had implied uh if we apply inflation going back to 2008 we should be at $1,500 and so we're significantly underfunded uh in the state of Florida and if you ask the you the reason for the difference between um uh the slide before U with the me go back of the 11,000 for Florida compared to the 9500 on this slide um and the reason for that well actually because it's fy22 um versus um current but the one is all funding versus this is specifically ffp funds so looking at the school district of Palm Beach County budget uh we are an a-rated District we're the 10th largest District in uh the country we're the fifth largest in the State of Florida when you look at our school Police Department we are the second largest in the county second only to the Sheriff's Department uh you look at our meals 33 million meals served uh a year um so that makes us the Lar say Mr Sanchez the largest restaurant provider um and then for uh transportation we transport over 50,000 students over 500 routes um that they're they driving every single day um we have 82 schools we're still working on more um 170,000 students in District operated schools you of that 210 170,000 are district operated schools over 13,000 teachers you know over um 20,000 employees were the highest the largest employer in in Palm Beach County when you look at our enrollment I do not have the update of enrollment in for this current year um for the voucher program doe still has not released that information um it seems like with that voucher program they get more delayed each year they they really are having trouble um in uh it grew much faster I think than they anticipated and don't really have the reporting structure um and mechanisms in place to be able to easily report that information so it ends up getting delayed um the reports are delayed and getting reported to US Reports we used to receive in December um we still haven't received as of today uh so we are supposed to be getting those updated reports I I believe it's the end of next week and I'll be able to update the voucher numbers in FY 25 to see if they were on target um with the projection in Palm Beach County whether we were higher or lower um than um that projection when you look at our district enrollment you can see that we had a prettyy steady increase each year we did have a dip in enrollment in District operated schools which is that blue part portion of the bar uh during covid uh We've then been able to maintain and have some modest increas es uh within um our district enrollment which is um not consistent with our uh counties to the South both Broward and Miami Dade they're facing declining enrollment in their District operated schools um when you look at that orange portion of the bar that orange portion of the bar is charter schools and the charter schools has remained um pretty consistent but the last two years we are seeing a decline in the charter enrollment um that we were not um seeing previously so it looks like the increase in the vouchers has had more of an impact on Charter Schools than it has on District operated schools because those parents already made a choice to leave District operated schools so it makes sense that they might be the first to leave to go to um a private school um so we we've been seeing a decline of 400 to 300 students um in in charter schools when you look at that gray portion of the bar the gray portion of the bar is for uh uh represents vouchers and uh the expansion of the voucher program so so prior to uh 20 U 2020 uh that was that represented the number of McKay students and so now McKay and every and and all other uh vouchers are included together so we saw a pretty significant increase from 19 to 20 um there were a lot of restrictions on students that were eligible um and then into you know 23 24 all those restrictions were lifted where there were no income eligibility requirements um so that's why you can see that the increase in students in the voucher program um has really expanded um and has now it's going to out paste um charter schools in less than five years took charter schools to get up to 20,000 you know in the you know over 18 years that I've been here and you can see that the vouchers are over 20,000 in in less than 5 years the majority of those students were never in public schools they were just students that were already in private schools that are now eligible um to receive additional State funding and so what that's doing is just adding additional students onto the role so when you look at the amount of money that's available Statewide um that ends up just watering the the amount that's available per student because there's now more students in the pool so when walking through our budget development timeline it really in working on our budget it really never stops um so we you know as we're working on and finalizing the budget for this year we're already starting to work on the the budget for next year uh so we start off by with the revenue projections uh the long range Financial Outlook the legislative budget requests um we start with our enrollment projections in the the first quarter of our our fiscal year uh the district is required to we come up we have our own planning department we work together with the planning department um the FTE Department as well as the budget Department uh to estimate and project what um enrollment is anticipated to be for the upcoming year um the planning department takes in a lot of factors um you know the expected births in the area um new um new building um new communities um changes within the communities there's a lot of factors that go into those enrollment projections um then in January the state will open um their uh forecasting tool we then have to work together with the state um to negotiate what the actual increase or or potential decrease in enrollment would be you know last year the state anticipated that we were going to have a decrease in enrollment we anticipated we were going to have a slight increase in enrollment um so we worked through with the state you know a compromise so we ended up having a slight increase of around um 300 students still waiting to get those final numbers from the state to confirm um but that's that's the the process of going through um the enrollment um projections and when there is a disagreement uh we do appeal um but there is no guarantee that uh the that they will the Florida Department Ved will actually um side with the district in terms of the enrollment projections and the reason why the enrollment projections are so important is like I said before the state sets the budget based on the total enrollment so if um enrollment comes in higher than projected and then they would go through and they would adjust and reduce the the the funding in all districts in order to make up for that shortfall uh there is a reserve that was set aside at the legislative level um $250 million to help uh with those under projections um or when there is an over Pro an under projection from what actually happens um and so as long as that continues there is at least some question um that districts will not be negatively impacted when the state isn't able to forecast what that increase in the the voucher enrollment is um that we also start in that first quarter of the you know to reviewing our school allocations whether there are any changes to the school allocations because our school allocations are built on our enrollment projections um so whatever um the enrollment projections are uh we have a staffing formula um for for each of the school sites uh we also start which is also a continuation um the capital plan review which is the capital plan review just like the regular budget is an ongoing uh ongoing effort so lean I don't know if anything you wanted to mention about the capital plan review we're going to talk more we'll be talking more about it later on in the presentation but really the capital plan is adopted every year in September and October we throw out the sheets for people to start giving us updates for the next year it really does it never stops um so the deadline for request is coming up on Monday um so hopefully we have a capital plan ready to bring back to you um in April I think that was the timeline that we we've talked about so we hope to bring that back to you in a couple months all right and then at the same time we're also working on our department Communications and Department budgets and um William duin who's the manager within the budget Department um he was going to give us a little overview of the department process uh thank you ga uh so towards the end of the year we'll send out a communication and bulletin uh for department heads letting them know that budget development has started again um and it establishes uh time frames uh deadlines and what will be expected of them during the process uh we meet individually with uh all the department heads and Chiefs in January um we review their budgets with them in our EPM budget system um it allows them to ask us questions um if they have any concerns basically just to make sure that their budget as it appears in this system hasn't deviated significantly from the current budget that they have um it also allows them to submit budget requests for consideration uh by their uh division head and then by Mr Burke and the the finance division um once those meetings conclude um the Chiefs are able to go in they're able to approve or deny any requests submitted by their departments um in February my team and I uh go in we do our final review to make sure sure no significant changes have happened um and then in March we have our meetings with uh the superintendent um in those meetings the Departments uh get to discuss their Department with the superintendent um and uh any concerns uh that they may have any initiatives that they may have or any budget requests um and then after that uh the um any budget requests are discussed um which ones will be uh supported or not and then those I believe are discussed with uh the board in April all right so then um just highlighting some other items within the other months so we'll finalize the enrollment projections in January with the the Department of Education uh we also have our first board Workshop will either be in December or January this year our first board Workshop was in January um our first budget advisory committee follows our first budget Workshop um then in February uh we have we'll keep the board um and as well as the budget advisory committee updated um throughout um the process what's unique with each um odd-numbered year so like 2025 the legislative session doesn't start until March in each even numbered year it starts in January um so we're the legislative session um is not planed planning to start until March yet we still have to release our school budgets we're going to release them um we release them no later than February 20th the reason being is we have to make sure that the schools have um positions as early in the year as possible so that they're able to advertise and hire the most qualified um teachers we when I first started in the budget Department we weren't uh releasing budgets um until April time frame and the the principles there was a big push from the princip saying that there's not a lot of teachers in the pool um and really pushed us to move our process up as as much as possible so that they had access to be able to to to Really the best um candidates um as when we're so we so the legislative session isn't starting till March um but we have to do a lot of our planning you know well before um the legislative session on these odd on these odd numers odd numbered years uh and looking at um the title one date certain that is a date that's set by um uh the Florida Department of Ed and so that's the date that determines whether school is going to be eligible for title one in the upcoming year and so that's very important as part of the budget process as to whether that school is going to be receiving Title One funds or not uh the we do anticipate the governor will be releasing his budget in February because of the legislative session the timeline of it starting in March we expect his budget will be released right before the legislative session and then I received notification um uh two weeks ago from FPL that they're anticipating a rate increase uh that rate increase uh they said would be released uh for review starting sometime in February um and it wouldn't be until January of 2026 so we're looking out to see what that anticipated rate increase will be you know we um uh we spend about $35 million on on um electricity so having any type of rate increase will have a significant impact on our Budget moving forward to March and that's the start of the legislative session this year so March 4th um we're continuing the department reviews as well as updating um the budget advisory committee during the the legislative session uh April you know continuation of that continuing to update the board and budget advisory committee in May the legislative session ends um and that's when we can you know actually know you know what our true funding is going to be U but our budget has to be built um before then so I'm already estimating what increases in F FRS are going to be um because we can't I can't wait until May in order to uh to finalize and and build the budget and so then we make adjustments um throughout the process as these different items um uh get finalized uh the prop property appraiser will give an estimate of of the taxable value and the impact of that um in May uh end of May um moving into June um and July uh we're working on two years because we're we have to start then closing out our current year um because that close out impacts our current year the amount that we're going to be carrying over to the next year uh the property appraiser will certify as requir required to certify taxable values by the 1 of July uh the board on uh July 16th will approve the advertisements were required by trim there are very uh specific uh uh prescriptive requirements of the budget timeline um how um the constituents need to be notified of any increase um in the millage rate even though the board really truly has very limited control over that millage rate it still has to go uh we still have to post advertisements in the new newspaper uh or online there have been changes as to um the the mode of that um communication uh but whenever we get complaints you know I have to say there really is nothing um that that we can do to adjust that millage rate the board isn't able to reduce it uh and so really they need to talk and speak with their their legislator uh the so the board will approve the the budget advertisements uh which are a template provided by the Department of Revenue um they'll approve that at the the July 16th meeting we probably won't even have the millage uh the actual certified millage rates by that time doe is required to release those no later than the 19th uh but we want to make sure that we we get everything approved in in advance and so that agenda item includes if we don't have the numbers as of that time that they will be adjusted based on um the rates provided by the Florida Department of Ed uh the board will also adopt uh the Capital plan um at that uh July meeting of the date that we have tenative adoption on the 30th so tenative adoption is on July 30th of this year um in August September um we're continuing the close out of the the current fiscal year uh we also have our 11th day of school enrollment count so that's on August of 2025 because we're building the budget uh based on a projected enrollment so as of the 11th day of school we'll then go back through and we readjust all of the school allocations based on actual the actual enrollment count on the 11th day and I will do a projection from the 11th day out to October as to what I think that enrollment growth will be um to ensure that we allocate back out um the appropriate number of um uh positions um to the school uh we normally start an open our bargaining um with CTA around that that time frame as well um August September time frame because until we have the 11-day count we really truly don't know what our enrollment is I mean we're monitoring it throughout the process uh but until we get into that next year on our enrollment um that's when we really have confirmation of of what our funding is going to is going to look like final budget adoption is September 10th and then we're required to submit that um to the Florida Department of Education by September 10th so that's a a timeline of our our annual budget process but it really truly is an ongoing process each year and there is a lot of uh overlap uh the board at their last board meeting we discussed their board bu budget priorities and these priorities are really tied to our district strategic plan and so our district uh strategic plan is a 5-year plan uh which will be ending uh which goes through 2027 and so the board will be going through a process um to then uh come up with a new plan or enhance our make changes to the existing plan to make sure it truly uh meets their needs but really highlighting you know focus of academic excellence and growth you know that you know our main focus and and you'll see that the bulk of our budget which it should be is spent on the schools making sure we provide safe and supportive learning environments um so it's it's not just providing just instruction ction but that we're providing physical safety and we're also addressing their their mental mental health as well and then we can we're only as good as the people that we have that we have um so committed and impactful employees um that we do what we can to truly value and appreciate um our employees and then this last bullet is not um part of the Strategic plan resource management and fiscal responsibility because it really supports all of the strategic themes within the plan uh we need to make sure that that just like the State of Florida um is required to have a structurally balanced budget each year we are as well so we need to be fiscally uh responsible uh and and make sure that we manage our resources uh appropriately so in looking at um our budget I'm going to look at our fy2 budget um our fy2 uh budget is uh $5.7 billion it's comprised of um District general fund so that's our day-to-day operations of the school district that's $3 billion um and then we have special Revenue funds so the special Revenue funds are federal state and local grants uh so we have a special Revenue food service is a a the budget for 2025 170 million special Revenue other is all of our other federal grants um so it's uh Title One idea and it looks like there's a a decline from 25 to 24 because this is from actual budget adoption uh but when you look at um the our grants we usually receive them throughout the year so we'll end up having the same amount of money by the end of the year within that special Revenue um other the two largest uh the largest grants within that are tital one um and Ida are the largest um Grant programs and we'll we'll see that later on in the presentation and then special Revenue Esser um those were the federal Esser funds of as a result of the pandemic uh those funds sunsetted September 30th of 2024 so that last bit of money that you you see in the fy2 budget we will not have that in 2026 that was just spending the last the last funds available it was primarily um uh related to Charter Schools um and everything Charter Schools didn't spend uh we were able to submit an amendment and the district was able to to utilize to make sure that Esser was fully spent um by that September 30th due date uh we also have a component of 380 million on debt service and two billion in capital projects which Miss Evans will talk about um later as well so in looking at the general fund budget $3.1 billion that's the day-to-day operating budget of the school district the bulk of the budget um so 78% if you add if you take into consideration the the decimal points um because right now these are um uh you don't see the decimal points when you're rounding them but if you add up the decimal points schools comprise 78% of our district operating budget that dark blue is a district operated schools at 53% the little bit of the lighter blue to the left of that big dark blue is the referendum funding cuz the referendum funding is is is strictly dedicated um uh for school purposes so that represents about 10% of our District budget um the little sliver next to that a little bit lighter blue is the referendum portion that's allocated to Charter Schools um since Charter Schools since we're required to share that those funds with Charter Schools um and then when you move to the left of that little referendum um Charters you see 7% and that's for the pass through of of funds to District Charter Schools um so that's passed through funding so that represents uh 7% of the School District budget that's the ffp funds that gets passed through to Charter Schools and then the next U blue is the McKay and FES so that's the vouchers so about 6% of the budget um goes to uh voucher students so continuing on and moving up to the next piece of the pie we have a yellow piece of the pie 7% That's departments uh so that's the review that uh um Mr dufrain went through our department budget review and when you look at that 7% over a third of that that orange piece of the the pie relates just to transportation and maintenance and like I you know said before so for Transportation uh transportation is transporting over 50,000 students every day you know so transportation and maintenance the maintenance portion is primarily related to grounds um and you know landscape we have a lot of schools it takes a lot to maintain the the the Landscaping outside um and so that's that's the most significant portion of the Department's um the department budget um moving on to that continuing um counterclock uh clockwise continuing clockwise we have the blue portion of the the pie that's non K12 so that's everything all the funding we receed that's outside of ffp so our VPK program our after school program adult and community ed u miscellaneous just local funding that we received that's about 4% of the District budget about one then you see a little sliver that's an orange that's 1% that's property insurance uh so that's the annual amount that we pay for property insurance we were happy this year that um it actually came in less than budget um came in less than last year so we were at 17 million um in annual property cost uh last year this year it came in at $14 million and we were actually even able to increase um um the coverage um slightly and um still um stay um below what we were the the previous year I don't anticipate that next year so we're not going to change the budget for property insurance we're going to keep it the same um but we were happy that we did have some savings this year and make sure that to set that aside as onetime funds um for next year 2% of our budget is for utilities phones data Wi-Fi all of that um like I said for electricity that's $35 million a year that we spend um on electricity 1% of our Budget moving continuing counterclockwise is employee leave pay payouts so that's for annual and sick leave and then uh we move on to the capital maintenance transfer at 5% of the District budget and that's everything within the general fund that's um we're allowed to use Capital money for but doesn't qualify as a capital project um so we transfer that money in from uh the capital projects fund to cover those expenses and then the last part the green is the 3% contingency reserve that we are required to maintain um under State uh board policy and looking at our financial condition ratio of the district U this is a a comparison of the uh what we consider the urban seven so it includes Broward Dade Duval Hillsboro orange and pelis um and where we stand right now and this this is when you're looking at our fund balance it's the assigned portion and unassigned portion of our district fund balance as a percentage of of total revenue and our district in FY 24 is projected to be at 13.29% 24 FY 24 numbers have not been released by ftoe yet they'll be released um in April um so I'll update the report um at that time um ours you can see a slight up uptick and it's very similar to what happened uh during uh the Great Recession back in uh 2010 11 12 where as a result of the infusion of all those federal funds there's a we saw an increase in the in the district fund balance and then we slowly spent it down after that well we received more federal eser dollars than we did during the Great Recession for a longer period of time um so you'll see the uptick and then you'll start to see the same where we'll start to see a slow decline just like the state is doing as well a slow decline in their reserves um because we want to make sure to be very strategic in spending those one-time monies um so that we don't um get our our district in um in the issue of of um having a structurally imbalanced budget meaning we're we have more in recurring expenses than we have in recurring Revenue um so you can't spend more money than than what you have so in looking at our school budgets you know the the bulk of our budget is schools and goes to the schools and so our schools are based on allocation formulas over 70% of the school budget is based on an allocation formula so it's based you know strictly on um uh the enrollment at the school and that will determine the number of teachers um and support staff uh each of those schools have uh the schools are also required um to present the budget um to their school advisory Council um and we do have some differentiation within the the school budget um to take into consideration the needs of the schools uh so we look at the direct certification percentage at each of the schools um and we have U it's 90% anything 90% and above for elementary and 85 and per 85% and above for secondary we use that in our allocations in order to determine whether we're going to round up or whether we're going to round down for the teacher allocation so what do I what do I mean by that you know whenever we're doing a the calculation it almost never ends up with you're going to based on the number of students you have you should have 11 teachers exactly it's always going to be there's also going to be a decimal point you know and what you know so if a school were to generate 11.01 teachers you know based strictly on the calculation we have to determine whether we're going to round up or to the next teacher or whether we're going to round down um so if a school has a direct certification percentage which is you know equivalent to free and reduced lunch so that means that that's the number of um students at the school that are eligible for uh uh uh benefits you know Federal benefits like snap um so that means that they have you know greater greater need um so if we have a school that has a DCP of greater than 90% they'll end up rounding up even though the round the the calculation came to 11.01 we will round that up to 12 teachers for them so they'll end up getting a second teacher all others would round down to 11 you know if they're less than that 90% and for elementary schools um and then we have the round up at 11.25 is when they actually would Round Up um to that 12 for for all other schools we also use as part of um I mentioned that we have uh we adjust all schools en based on the enrollment as of the 11th day so we call that the 11-day count um but we're really based on our funding is really based on enrollment for that one week in October that's one of of our survey periods that that's we're funded based on um the one week in October enrollment in one week in October and one week in February uh so as so for that 11 day at the 11th day of school I have to project out to October and say what I think our enrollment is going to be as of October I then take that um and I do that based on trending It Out by looking at um previous years I compare that to where the adjustments that we're making as of the 11th day and then I say this is the number of um positions that we will be allocating back to schools based on what that projected enrollment is going to be in October uh we then look internally in the budget department and we make adjustments based on if a school is one away from from earning that teacher we give it back and and we adjust that that pool of teachers that's available then what happens is I then give those units whatever those remaining units back you know say I calculate that based on what I think enrollment is going to be in October we're going to be giving back 80 positions after we make our adjustments and we add back based on which schools are one away that might total say 40 positions so now there's 40 positions left what we used to do in the past is we used to um it was more of a budget Department decision as to how those units would be allocated we now take those units and we allocate them and we've been doing this for the past um uh eight years by now uh we take a composite score and we take in the the needs of the schools as part of that analysis what is what is their school Improvement grade what is their school day grade what is their uh DCP percentage so the the number of students in need what are the percentage of students at level one what are the percentage of of students at level two and then we proportionally allocate um those remaining units to the regions based on the needs of the schools it's then up to the region to tell us how they're going to utilize those units so we meet with um each of the regional and instructional superintendents um as a team uh with the deputy superintendent um we have a team at the of District leadership and the regional and superintendant will go through how they're going to allocate the units that were provided to them and have to explain why they're choosing to give a position to one school over another school and that process um has worked really well because of the regional superintendant and the instructional superintendant know but much better than I do in the budget Department truly what the needs are at the at the school level so after you look at that allocation um that strictly based on enrollment uh we have an additional 21 million in vocational positions um at middle and high school uh we have uh nearly 30 million in choice and magnet and part of the vocational and all of the choice mag magnet is funded through the referendum we have our summer uh program which is around 12 million and then we have um uh what we call miscellaneous other programs because it's a several small programs where we allow schools to carry over a certain amount of their substitute um savings um so to incentivize schools um to be more careful on uh the substitutes that are brought in because we'd much rather have a teacher in the classroom than a substitute uh we allow the schools to carry over half of whatever they save within their their substitutes to the next year to be used on um initiatives to to help um uh at their School site um more instructional type academic type uh programs and enh enhancements for their their students um 504 Ada accommodation s we don't require schools to pay for that out of their budget um that's something that uh we fund as as a district Reserve as as we're notified that there's a need at the school we add that resource um they also receive additional funding for staff uh development as well as gender Equity um and that's a um a federal requirement because girls deserve to have the same access to uh Sports as boys and so a lot of that is making sure that the schools have that funding in order to provide those uh materials to provide equal access uh I mentioned as part of that ffp program the state categoricals and set asides so the the legislature really does mandate how those funds are used um so there's a portion um for teacher pay uh that we receive as part of that's actually embedded within the base student allocation that has to be used for teacher pay and so that will be set aside in our ffp funding formula and it will say x amount needs to be set aside for teacher pay uh we have all of our AP IB Ace and Industry certification programs uh a portion of that funding um up to 80% has to be allocated back out to each of the schools so that is a supplemental funding for their uh for their School site and there are restrictions on how that funding can be spent but that's added um to the budget and has been very helpful especially at the high schools being able to provide some flexibility and allowing the high schools to add additional teaching positions and support staff um to help at the school site uh we have comprehensive system of reading instruction which used to be a categorical and is now um just part of the Bas student allocation but we still track it internally because we're still required to submit a plan as a district so we still track that to ensure that we're spending it as we said that we were going to spend it educational enrichment um that is uh tracked as separately as well um School recognition funds are funded outside of ffp but that's based on um the the grade of the school and so those funds it's it's determined and calculated by the state the state will allocate the funds and we will allocate them and pass them through um to each of the schools um they're spent primarily on um bonuses for the the school staff and the sac um they have to have an approval of District staff I mean not District staff but School staff um as well as the sac and they have that all has to be approved uh by at the school level by February 1st if there's not agreement um by February 1st then those funds are allocated equally to all the teachers so it's all spelled out within statute how those funds um should be spent and if there there isn't an agreement at the school site how will be allocated to ensure those funds get get to at least a a subset of staff at the school site mental health um other categorical safe schools we mentioned um teacher classroom Supply is embedded within the base student allocation but an amount that we have to allocate based on um statute as well instructional materials is no longer a separate categorical but um it's now embedded within the base student allocation uh the categorical used to be around $15 million um but the textbook adoptions have been significantly more than what the state was allocating and districts were able to use our Esser funds in order to supplement the need for instructional materials and we also found that during that time period the prices went up pretty significantly as well because the textbook providers knew all the districts had um additional money um but the um instructional materials all of that is negotiated at the state level um and so we've reached out and asked the state I've reached out as part of the the finance Council for the Florida uh School Officers assoc Association um as well as others it's not just a challenge in Palm Beach County that we need um fdoe to do something in order to try to reduce the cost of instructional materials um Statewide um the ESC guarantee we talked about as well as uh transportation uh so Mr dufrain is going to go through the referendum so the referendum is where I mentioned earlier that our funding does not increase based on the increase in property values that's true for our ffp funding but for our referendum funding the one mill that we have available that does increase based on the increase in property values and we've been able to use that increase that we had in property values in those um those previous years um to provide additional uh um salary increases uh for uh teachers um so we're very fortunate to have this funding um to be able to to supplement uh the increases uh for our teaching staff uh so for fy2 uh the referendum has provided Revenue to the district that we have to share with Charter Schools of roughly uh 341.50 um the referendum allows us to uh provide supplements to help attract and uh retain qualified teachers um this year it's providing supplements to over 12,600 teachers um it allows us to provide uh positions in elementary Fine Arts music PE hundreds of positions in each of those uh categories um to continue Choice programs career um I believe we're looking to add a ban pilot program that's going to be funded by the referendum uh for next year um we're working with the uh academic uh office uh to get that together um the referendum also covers uh mental health uh Safety and Security um so it help us supplement security with additional officers in schools um mental health professionals in schools um and the carryover that we've had has allowed us to fund uh one-time security projects such as uh school police vehicles metal detectors uh in our high schools uh and and so forth um we share about 41 million this year with Charter Schools uh so the district gets about 300 million of that 342 million and 41 million goes to Charter Schools so we're very thankful for to the voters represents over 10% of our District budget and it's very important that we continue this um and so we'll be going back to the voters in 2026 so so now getting into the the proposed changes to the school budgets um because we've you know gone through that review process we have to release um School budgets by February 20th since there was so much uncertainty in the legislative Outlook we were not looking to make any major changes um to um School budgets so we're pretty much keeping them status quo the only change we're making a very minor U modification to the ESC um speech and language pathologist ation which is primarily just going to be shifting resources from secondary to Elementary um there will be no savings um in funding uh because the funding uh with whenever we make changes within our uh ESC allocation or our elll allocation we let the that money stays within elll and ESC and so that they can ensure to use that money um for students um U that need it um so we never we haven't uh historically in the past taken any of those savings and used them as a savings in the just District general fund um it always stays within that program um so this is primarily a shift um of resources from secondary to Elementary um because in when you look at um Elementary Schools elementary it's more student direct contact UM and secondary um is more um it's indirect contact uh with the students and so the we really feel that it's more important to have that um increased direct student contact at the elementary level and have those resources and those teachers in the elementary school where they're going to have that direct impact with the students um and Miss Schultz I don't know if there's anything you'd like to add on that just that um at the elementary level it really allows us to focus on the early intervention and potentially make future learning gains for all of the students with good early intervention okay thank you and then the other two changes was which uh Mr dufrain mentioned was expanding well actually starting a bam pilot and expanding our Athletics pilot um to four additional schools so we started the a we intended to to do an Athletics as well as a band pilot in fy2 we ended up um just doing the Athletics pilot and then had the band uh pilot just shadow the Athletics to see how it was actually working with the Athletics try to get some lessons learned before we rolled out the band pilot program um and there was a lot that the band learned throughout that process so I'm glad we took that extra year um and waited to roll out the band pilot um to FY 26 um the Athletics pilot is going well uh we want to expand it to four additional schools the costs did come in a little bit higher than what we anticipated and that's because we made sure with the pilot to have a good representation of four different types of schools so we made sure to have a title one school so a high need school you know a power school that has a you know a great Athletics program already and everything in between um because we wanted to make sure that if we were going to implement this we knew what the impact would be on all of our um all of our different high schools since they are so different what we found was that those um those higher Needs school schools really truly did not have the same resources as um those more experienced uh athletic programs and so the the cost was a little bit higher in order to bring those schools up um to just be at at the same um uh starting point at those others as the other schools so it was you know really Rising the floor of having a just a basic Athletics program um and equipment and supplies you know all schools by the by the time this is implemented districtwide uh we can at least say as a base that all schools will at least have this um so there is some additional cost bringing those schools up to the Baseline um the full cost once it's implemented districtwide for all high schools will be about um $3 million uh with the BAM pilot uh the BAM uh pilot uh we had a um a committee of uh band directors we also had um uh somebody who was a ban parent um a District staff but also active ban parent um three of his kids have have gone through the ban program he has you know one left so he had a lot of knowledge of the the the pilot because we wanted to make sure to have a parent representative on that committee as well um cleave Malone is the one um in the district uh from District the district leadership leading that that team um and they took a very thoughtful approach uh really learned from the Athletics uh pilot from uh this current year and continue to learn from them uh but the amount that they will need and they assess they're they're doing the same thing you know where where we're going to roll it out to the same types of schools you know High need school and those that have a wellestablished uh Band program so that we can get a good good mix uh but they want to make sure that there's a standard Transportation um uniforms um consultants and coaches and that's one of the the biggest costs of a bam program is the consultant and coaches that are needed uh for that program uh association fees performance fees repairs um and color guard equipment so it's about $140,000 is estimated um per school this would eliminate the fair share um but still allow schools to fund raise and once we would once this is implemented districtwide it the anticipated cost is 3.4 million um and this the the band program you know is a music program it is an academic program and would be funded um from the referendum that increase in the um uh the anticipated Revenue based on the increase in in property values so in looking at the general fund um considerations for you know not only this year but beyond the legislative session really hasn't even started there are some bills that have been released I was going to give you an update but I mean it's too early in the process at this time there are a couple that I'm concerned about um with uh related to Charter Schools um you know expanding you know making it easier for schools um to elect to be um you know to take district schools and and letting them convert to a charter school um so there are some uh two bills both a House and Senate version that do make it easier for those conversion Charters um and then there's also um concerns about putting restrictions on um allowing districts to purchase land and um tying it to um enrollment and um so there are there are some that that we're definitely watching but I need to see really if they start to get traction before I report them um to the committee so our next meeting we will have much more of a a legislative uh update our per student funding increases that really I need to know what that is in order to know that ties in directly to our salary considerations because it truly is um we have to look at what we need to do in the district what we need to uh what are additional costs which we really try to limit this year you can see that we really Tred to not make any changes so that we can make sure that whatever increases we get we're able to pass through to salary considerations which includes um uh F FRS and so this F FRS is our Florida retirement system those rates are also set by the the state legislature this past year there was a very nominal uh increase in the F FRS rates of that resulted in an increase impact to our budget of of about $500,000 that's the first year in many years that we have not had a significant increase in our F FRS the year uh prior the increase um and the impact to our our District budget was $18 million so this past year we were able to take all that additional money that would have gone to F FRS and put it into uh raises so when I'm waiting um to see you know what the anticipated increase in rates FRS rates are going to be this year I'm I'm I'm anticipating 1.8% is my best guess but that truly is my best guess I I don't see them not doing an increase this year again you know that that is not going to happen two years in a row and since we didn't do an increase this year what is the increase um for FY 26 I'm anticipating it's going to look like it was um in FY 24 uh so that's i' I've built in 1.8% um into the budget and we'll we'll just have to wait and see what what happens throughout the legislative um session and then just overall what else is the legislature going to do um that could potentially negatively impact our district are there going going to be other mandates that are end up being unfunded mandates you know like Safety and Security at schools yes you need to provide an office officer at every school but they don't actually fund us um in order to do that and so we have to look for outside resources like the referendum in order to supplement you know our our security because we do use our general fund dollars um uh to fund that one officer per School site but we we pay we our security program is is um goes well and Beyond what the state requirement is and we provide more than one officer at every school so we need the state to at least fund the one officer um per school because all that ends up dipping into um the amount from our our general fund and then we use our referendum to fund everything over and above U that one officer per School site we need to cons I have to consider uh continue to monitor enrollment because our budget is based on enrollment um so we've been very fortunate to not face declining enrollment but this year we're looking at that our projected enrollment is going to stay flat um and um you know we're we hope to to not fall into that declining enrollment but right now our projection is uh flat with the current year uh we are going to continue to monitor Health Care um just like the state um is having issues with funding U Medicare and and their their state healthare plan the cost of Health Care has gone up exponentially I hope bdr is right that those Health costs are are going to stabilize over the next 3 years but we're continuing to monitor um and and work with the Union in order to bring down those increases in future years um there are going to be increases but we need to start working now to make sure to bring down those increases uh so we don't have to have significant increases like we had um this past year in um Health rates and then like I mentioned the FPL the increase in the proposed FPL rate um that is supposed to be coming out in February so in our next meeting I should have uh what FPL is at least proposing for their rate increase but it will take several months for that to be uh approved by the the state Regulators okay so now Miss Evans and Mr Sanchez are going to go through the the capital projects fund good morning everyone this also gives Miss Frederick a chance to rest her voice a few minutes um so we're going to go over the capital budget um I mentioned earlier the capital plan process never really stops um and the picture there is Park which is we're very proud of the new the replacement school that opened this past year we have two schools that'll be opening this coming year the replacement of Winbrook and the new school out near the Arden Community which hopefully that's going to be named in later in February um but the capital plan we're required by law to do a financially feasible 5-year Capital plan um the the one for fy2 which was attached as a document for this meeting was a 12-year plan we expanded it with the current referendum we expanded it to 10 years so that we can Encompass the full length of that 10year sales tax with the new sales tax we needed to go out 12 years so the last plan that's available right now the one we adopted in September was 12 years the one we're working on now will be an 11-year plan we'll shrink it by one year and one more next year to get it back to 10 we we aren't required to do a 10-year plan but once we did it we found it to be a very helpful tool to be able to know what's coming beyond what the state requires so with our plan um we start with the one that's adopted and then projects are added deleted changed based on conditions at Schools board priorities lots of factors um market conditions cost of construction certainly is a big number um revenue forecast legislative changes can certainly impact us so all the current issues are rolled in and we completely review the process every year um I just went through a lot of these um the board priorities enrollment projections um program changes at schools um and I covered the rest of them already so all those things are factored in lots of departments and Mr Sanchez's team spends a lot of time um with me going through their Capital plan the capital plan has a number of Revenue sources um that are lumped together and each one of them has its own requirements of how it can be spent so where the general fund if you dig into our financial system there's just a handful of funds we have lots in capital every Year's property tax is a separate fund um the every debt issue is a separate fund so we have property taxes which is the largest portion at 534 million is this is the estimates for 26 um impact fees are from the count come from the county um they collect the fee for new construction based on the impact that we may feel interest income it may be higher than that I've got it low baled right now um sales tax revenue we've got that budgeted at at $200 million and that's another big thank you to the community and the voters that have approved the continuation of the sales tax um State sources we get a a very small amount um this is very small percentage the capital outlay and Debt Service we're estimating that to be about 6 million and there's some security grants that are a little over 2 million that we'll be receiving and that the security grants are shared by Charter Schools um the sales tax the current sales tax that is expired will expire um in another year is not shared with Charters but the new sales tax will be um we expect to be borrowing um about $200 million um to cover some of the construction costs that are going to be starting up and there's some fund balance that we have that we purposely have in fy2 that is rolling forward to be used to help cover cost in FY 26 um Capital unlike the general fund does not have to be structurally balanced we have lots of funds that will roll forward when you start building a high school for example it takes three to four years to finish that project um the money all comes in in one year we're spending it in year two three and four um the the idea of structural balance doesn't work the same for Capital as it would for the general fund um a quick update on the sales tax the current sales tax um we've received 1 we expect we've received 1.3 billion the projection for the same time frame was 1.1 billion we're well ahead of projections um it's 129% of what was projected for this timeline we've received 98% of what we thought we were going to get in 78% of the time there was a sunset provision in the sales tax that if selections through September one of any year hit um 1.35 billion we would end the tax dece we would ended that December we did not hit that level for September 1 2024 we absolutely will hit it in September 2025 I expect we're going to hit it in January or February we're very close so it will Tri it will sunset one year early the new sales tax is going to start January 1 2026 so they will dub tail there won't be a a period of time without a tax it'll just one will end and the other one will begin and it's the same half penny um the current tax has a list of product we're working on the new tax is focused on planned maintenance and rather than deferred maintenance and facility and we also have facility improvements and there's some other things out there security um technology um but rather than deferred maintenance we're focus on plan maintenance and making sure we're maintaining our schools interest um the expenses to date 82 million this is as of December 31st um open purchase orders 138 so those two add up to 940 million um there's still quite a few projects that need to be done um when the project when the sales tax started we did the schools that had the most need first so the biggest projects happened first now we've got a whole bunch of little ones so they're they're much smaller in scope so I think there's probably 50 facility renewals still to be done but they're averaging a much smaller dollar amount to the point that we're working on how we're going to we're going to be combining schools to get the work done um yeah so sales taxes bring along really really well and again a big thank you to the voters for approving the continuation of that tax so what's in the capital plan um obviously construction projects and I'm going to let Mr Sanchez talk a little bit about that so I think the next the next couple of slides we also have facility projects that aren't new construction that's maintenance facility renewals improvements site acquisition U furniture and equipment and that that's exactly what it means desks and chairs it's also musical instruments AED devices um for technology it's what goes in the classroom as well as all the technical infrastructure at the district and the maintenance of all the tech systems and of course cyber security is is a big um Focus right now we need to make sure we're keeping all of our data safe security projects um that is a a big portion of the budget and um there's a large portion of the new sales tax that will go towards security projects as well transportation is purch purchasing buses and support vehicles and contractor Transportation um Debt Service we frequently borrow when we're building new schools or replacing schools for big projects we borrow so of course we have to pay that back so the principal and interest payments are included in the capital budget property insurance is one of those things that we transfer the money from Capital to the general fund and Miss Frederick talked about property insurance earlier but it's it's a line item in the capital plan as well we do have reserves of course and we do have transfers to Charter Schools and we'll talk more about those in in a couple slides this is just a graphical representation of it and the first chart on the left the first pie chart is FY 26 based on what was in the last Capital plan this may change and tweak a little bit as we go through our process and then the one on the right is what we think the 11-year plan is was the 11e plan that was approved in September and I want to point out for FY 26 that 10% reserves that is all sales tax because when we have the sales tax project budgets we've left them as they were originally approved in 2016 and we know those projects are going to come in higher and we have a reserve specifically set aside to cover those cost increases but the Board needs to approve each one of those as we come along and the sales tax oversight committee reviews them all so that 10% Reserve we expect every penny of that will be used for those sales tax projects with that we're going to pop over to construction I'm going to let Joe Mr Sanchez talk about that and we'll start with do you want me to cover the Council of great City Schools okay I'll do this one um back in 2014 the Council of great City Schools which we're a member of came up produced this report that was about reversing the cycle of deterioration in the nation's Public Schools um they really looked at the correlation between facilities and academic achievement and stated that we have to properly maintain facilities in order for students to be able to do what they need to do in school um they recommend that we have between 2 and 4% of the building replacement cost annually set aside for plan maintenance and that's something that we work towards over the last 10 years and with the new sales tax we're we're monitoring that we've actually changed the capital plan so we have a a section that's called plan maintenance and then everything else is called facility improvements so that planned maintenance our goal is to make sure that line item aligns somewhere between two and 4% of our replacement value right now I think it's at about two and a half between two and three um I'd like it to be higher but we'll see what we can make what we can make happen but even with the ref new referendum we're at about 2 and a half% um going forward and that's something we'll be monitoring every year as we do the capital plan to make sure we're staying in that window they also recommend that we do a facility condition assessment every five years we've got one that that is underway and that is bringing in an outside group to go and actually look at every school and every component of every building and giving us the assessment of it and the anticipated life so that we can make sure we budget for Replacements and maintenance of those systems in our Capital plan so we have that in the capital plan going forward every five years um that we will do that we did it in 2016 it was done internally by staff and they did a really good job they had a very short period of time though and we think there's going be a lot of value coming from the outside group that that that's all they do you this is their this is their field of expertise so we're looking forward to getting that condition assessment and rolling that into the capital plan over time okay Mr Sanchez now you got slid now you do that slide so well so I'll let you let you have it um so in order to to apply with um recommendations from Council great City schools and also to get the the best use of our of our facilities we've come up with this plan we call uh refresh renew and replace and the goal of our facilities really when we build our new schools is to last 50 years or more but obviously you you can't just leave a building for 50 years you got to go back in there you have to do things to keep it up up um upgraded and make sure that's it's in good shape so in that 50 years we've broken that down into four periods in the first 10 after about 10 to 12 years we're going to do a refresh in there and that includes interior painting exterior painting some some selective mechanical electrical Plumbing um improvements um because that that stuff deteriorates over time restroom Renovations you know um kids are hard on restrooms so you got to upgrade the restrooms some FF in is Furniture fixtures and equipment make sure we upgrade that ADA compliance and comprehensive safety inspection reports compliance we do those continuously throughout the years but that's we put a f concentrated effort on that then when we get to about the halfway cycle of the year of the school about 24 to 26 years when to do the same things that we did above but we also want to replace a lot of the mechanical electrical Plumbing Systems intercom fire alarm systems um cuz they don't last beyond they typically 25 years is about their useful life we want to do upgrade the Interiors you know the cabinets the doors start to get you know the hinges and the handles and all that stuff start to get messed up flooring we need to be replaced sailing signage Roofing our typical roof we try to get 30 years out of the roof but a lot of them don't last that long unfortunately because we're in the south Florida Sun um doors and windows up upgrades parking lot improvements and all that stuff and also upgrade play quarts in athletic fields we do another refresh at years 36 to 38 is the goal and then at the the 50-year life of the facility is when we want to do a replacement we call them comprehensive modernization projects where we basically tear down the school tear down all the buildings and replace them with new buildings so that is our that's our plan we're as we're adjusting to it there's some differences here here and there that we're with some of our schools but that's the that's what we're working towards so this uh next slide kind of we we've presented this to uh this body as well as the board over and over past several years different meetings and we'll continue to provide it with updates so I just highlighted in in red the the ones that have uh that have had changes since the last time we presented this um but in the left hand corner top left you see the additions and remodeling projects won't go through all of them but the just the ones in red we've did finish in a buildout at DD Eisenhower actually when we originally built the replacement DD Eisenhower um we we left a section of the second floor of one of the buildings um vacant for a future addition so we built that out and made that space into Middle School space so now that school is converted from a well it was already a K8 but now it's it's legitimately serving as a K8 school because it's has classrooms are appropriate for for middle school students um we changed the date on Fon Holland police administration building just to uh this April we'll be finishing up we did a a a master plan for Forest hille High School that looked at um improving the traffic improving parking um and also looking at how we can add additional capacity to that that school um so we we completed that master plan and we're we're working on the the parking projects uh this year um at the old adult education center U we had planned to De demolish the building but we were postponing that because we're looking at some different Alternatives which I'll talk about in the next slide and then uh historic Roosevelt Phase 2 uh we just updated the date on completion with that we're working with the city of we're working with the county the city of West Palm Beach and um the community um foundation on that and then Village Academy um the kitchen expansion we just updated the date we updated the dates on the new schools and we'll talk a little bit more about that in the next slide as well the the replacement and mod projects um as M Evans pointed out we completed Grove Park um Pine Grove I want to say that's complete too because it's almost completely Stu where we have to finish a parking lot there which we're finishing up this this spring um and then we updated some dates on some of the transportation facilities West Riviera um also we updated the date because this school is going to be actually finished mid year but we're not going to move the students in until um the summer of 2026 next so just getting a little bit more into the details about the some some of the current considerations that we have um you know it takes as EV point out we we're continuously meeting and talking about different projects and how we can best these projects and make sure we use the money as as wisely as possible so a couple of new projects that we're looking at um for at Crossroads Academy this is an alternative school that's out in belglade um we're looking at potentially combining that campus that with uh West Tech West Tech right now has a lot of career programs and space out there so if we put the uh alternative school at the same campus with with West Tech um the idea is that we'd be able to afford those students the opportunity to take more career um programs and more career classes so they once they graduate from high school that they have a a trade that they can go into so that's the idea with that one uh lorth High School swimming pool that swimming their swimming pool is over 50 years old it's really passed its useful life so we've uh started conversations with the city of lorth beach to to do a joint pool swimming pool so we're we're considering different options with that right now um the renovation of old DD andh Hower um when we rebuilt these DD andh Hower um there was an a building on campus that we that wasn't old enough to demolish by the state rules so we're looking to renovate that building and to make it into some um some ancillary spaces some office spaces under the project modifications um so these projects are already in the F Capital plan we just looking at uh modifying them the first one is acceleration of the western communities area elementary school 23h that's out in the West Lake area if you've been out west lake recently you see that that area has grown tremendously um there is a site that was dedicated for an elementary school so we're going to be um we're moving that one up right now we're looking it was originally in the plan for last year for 2029 now we're looking at moving it up to 2027 um to get that done two years earlier CU they they had they have the need out there River Beach area high school and Inland Grove High School um the board last um last year approved a plan that would allow us to build a new High School in Riv Beach um on a campus of where Inlet Grove sits today um Inlet Grove will be moving to uh where Lincoln Elementary School sits today um so that's a master plan we're working on with the the city River Beach because they they want to we want to do some joint uses of facilities with them um so that's that'll be worked out u forestell high school as I mentioned we're doing the parking and traffic improvements from the master plan that we just completed uh West Riviera Elementary pekk and uh Dr Mary MCL but kind Bon elementary school so we're we're changing the grade configurations for those schools so West Rivier is going to become a prek to two gr two and then Bon is going to become grades 3 to 5 and that's planned on happening in of 2026 as well December 2026 that aligns with the rebuilding of West Riviera which I talked about in the last slide uh transfer development rights um with dry fist if you've been around for a little bit you know that we we have the city of West Palm Beach has a program we were allowed to um you can tear down your building or and build higher but instead of doing that you can sell those those development rights um and get income for it so other developers can build higher or build more more densely um so we sold our development rights for drish because we don't have any plans or demolishing um a couple of most buildings that driveit they're historically significant um even though they're not typ they're not really designated but they have some significance to them um so we sold that for over $8 million those development rights and we're going to we're using that money to make some additional improvements at dry fist School of yarts um we're also planning on renovating there's a um historic auditorium at Jupiter Elementary school we want to use some that money there and then there's also a historic building at um Northboro elementary school so um instead of just using all the money at at dry fish we wanted to share the love with some other schools as well so that's that's the plan with that 8 point I think it's 8.3 million more there um and then the last one on there is the adult education center as I mentioned we were planning on demolishing it real originally but now we're looking at one alternative is to to make it into a police training facility um you know there's a lot of emphasis on improve improve um Safety and Security in our schools so not just for our police department but for other um police agencies around our area to go in and learn how to train on um how to safely uh enter a school and and get students out of there safety safely the other option another maybe a co-use that we're looking at is for uh driver CDL training we have a big need for more CDL training and that that site has a large parking lot so we're considering that use out there as well okay I'll take it back now so a little more information on the other types of projects in the capital plan um facility renewal maintenance projects we talked I talked about that a little bit but it's all the other types of projects that are out there it's the ongoing need to maintain our facilities um we have a lot of buildings we have a 30 million squ ft under air it takes a lot to maintain those the roofing budget scares me every time we talk about it um because we have to replace those roofs um and the costs just keep Rising um we'll continue to deal with um any deferred maintenance projects although hopefully we've got most of them taken care of with the current sales tax um we're also dealing with cost escalation and we've adjusted things over time one of the commitments we have that we feel very strongly about with the sales taxes promises made Promises Kept so even though the C cost of the sales tax projects have increased we took some of the projects planned to be funded with sales tax and funded them elsewhere just to make sure that we can finish every Pro every project that was on that project list and those are included in this this section security projects we want to continue to enhance our facilities with things like bdas bidirectional amplifiers which is a A system that you put in the building it adds a ground wire and an antenna so that fire departments and things can communicate with their radios within the buildings um guard houses Sally ports fencing and Gates cameras card readers alarms um and I'll tell you the security projects every time I have a meeting with them there's new things that are coming out security is one of those things that is constantly evolving so we don't have a specific list of projects going out in the future because it's going to change between now and three years from now the things we're doing at schools will probably be different so we've made sure we have budgets out there to address the security needs of our facilities educational technology um that is funded from the sales tax and then going forward will'll be funded um through other Capital funds and that's the interactive flat panels that that are in every classroom um the document cameras all the computers um it actually funds funds the computer refresh including all the Chromebooks that the students use um one of the things we're doing with the sales tax is to expand that so that all students end up with touchscreen laptops um which is really necessary when they go into the AI program and some of the other programs that we have at the district they really need those touch screens so that's going to be a big um push going forward and then there's other technology projects including cyber um infrastructure and other equipment that's needed to make sure our students and staff have the technology they need Debt Service as we mentioned before is certainly a component this is a little chart that I update periodically and the the the vertical bars the the what looks like it's gray that's existing Debt Service the blue is what we have plans for going forward um and then the vertical the horizontal lines the the red line is 50% of the 1 and a half Ms which is the amount of capital millage we're allowed to use and that's the the guideline we have in our Capital plan so that really shows the difference between the amount of debt service that we have in the plan and what we have the capability of borrowing for that green line and I may be the only person that pays attention to that but years ago Capital we used to be able to Levy two Mills and when we had two Mills we had first of all if we'd still have the two Mills we probably wouldn't need the sales tax anymore but we'd also be able to borrow more um occasionally we do short-term debt we've done that for leases to replace school buses and air conditioning systems when needed but typically we're doing long long-term debt when we're building schools and it's going out for 20 to 25 years the other projects um transportation that's school buses and the maintenance of those buses um equipment desk chairs musical instruments um we have a project that we added two years ago to update the equipment in the school TV studios that hadn't bit gosh they sh brought me pictures of the big the big giant monitors so we're quickly replacing those and constantly looking at what's in our schools and what needs to be updated and replaced property and flood insurance we talked about reserves big portion of is a sales tax but we also have especially as you go out in the years the reserves get larger every year because there's so many things that will come up five six seven years from now that we don't even know about so the longer you go out in that Capital plan especially beyond the 5-year window we have more reserves that's the cushion to address cost escalation and things that we just don't know yet Charter Schools um that was a big that's that's something that was all always out there but um in recent years we've had to share the capital outlan millage with Charter Schools on a per student basis it was 20% in FY 24 it's 40% that we have to pay in 25 and the state's picking up the rest um so the amount we're paying for Charter to part Charter Schools will continue to grow and over time in our Capital plan that's over $600 million that'll be going to Charter Schools from the capital outl millage and then we'll also be sharing part of the new sales tax with them so while the capital plan looks very large a large portion of it is going to Charter Schools going forward um what are we concerned about obviously we talked about the capital outlay millich going to Charter Schools how could that change and what does the state what portion does the state fund um right now the state funds they're funding 60% this year they also provide the Pico funds that it's um public Ed education Capital outlay Money that we used to get that all goes to Charter Schools too um so what does the state continue to fund and what we have to do for the for the difference so that's something we're monitoring legislative changes that could further dilute the amount of money that we have for our schools cost increases are certainly a concern um every time I get a a budget request from facilities and I see how much something cost it just keeps growing um enrollment changes certainly are an impact just as it is the operating budget and useful life of equipment we're seeing systems like air conditioning equipment they don't last as long as they used to so we're having to adjust the useful life and replace equipment more frequently so those are some of the things we're looking at and if Joe Joe and I had an hour or two we could go through a lot lot of others but these are the the primary ones that we're concerned about with capital and I think it heads we head back over to miss Frederick now all right so now getting into um the last part of the budget so we've been through the general fund uh capital projects uh Debt Service uh now special Revenue fund so special Revenue fund U fy2 adopted you $200 million the main com main grants like I mentioned Ida is 23% Title One is the largest at 38% um and we have title two three and four is 12% of the budget uh Esser you see I have highlighted um at 9% that will go away um for FY 26 uh since that did sunset in September 2024 uh 21st century is uh 5% of the special Revenue fund budget and those are um after school programs um and then that other category uh breaks down into a lot of other grants um you know from uh tobacco training which is a state program head start you know which is a federal um uh prek program we have some adulted um Grant programs uh Perkins is uh Career Academy uh type grants uh uh stop violence U Pew uh the stop violence is um you know mental health security related uh Pew a lot of those are are you know small um small grants for individual schools to help academic enrichment like purchasing books and tutoring and and whatnot uh so we have then eight other Federal uh Federal other grants 70 local other grants um and nine additional state grants so we manage a lot of different grants um through at the district um when we're looking at uh the special Revenue funding um consideration you know what's going to change for FY 26 um so I mentioned with our Esser funds um there will be no Esser you know Esser is done uh we were fortunate to have it we were able to uh offer some uh additional supplemental bonuses for staff uh that ended in 2024 um so there there are it's unfortunate when we're going through the bargaining process you know we were clear from the beginning that that would Sunset and it did um so fy2 is the first year where we don't have additional funding um for bonuses and then we have two grants uh that are um are not going to be renewed um for this current year so we have a CDC Cooperative uh Grant um and Florida districts it's not that this grant is going away um Florida districts we could apply for it but Florida districts are no longer going to be competitive uh based on um changes in U state regulations uh so since we're not going to be competitive we needed to plan as to that we're not going to receive this grant this grant has one position um and so we are going to shift this position into title four but we're going to change the job duties of the position to assure that uh it aligns with um state regulations um Project Connect uh is another grant that the US doe um it's a school climate Grant um they're now shifting their focus uh to opioid and Drug preventions so they're not going um to be renewing this grant that Grant um has one position as well um it's going to be added to title 4 title 4 was already U funding um a program project for skills and learning for life and this position is a good fit to help supplement the work that's already being done and then um we know that there's a new Administration we know that there's been um talks of significant changes to the US Department of Education we don't um anticipate that there would be any significant changes in 2026 uh the upcoming year it's still possible and we're monitoring that um but monitoring not only for FY 26 but um future years so those are the changes uh that were anticipating within the special Revenue funds everything else will remain the same and how funds are being allocated for title one and Ida purposes the funding allocation will change based on the actual funding we receive um and now we're going to walk through um each of the federal and state um uh programs and so I'm going to start with uh Nicole Smith and she's going to walk through Title One and uh we're going to go through you know the purpose and and um how we utilize those additional federal dollars so the purpose of um Title One Part A is to ensure all students have access to a high quality education um the award is passed down um through the state based on a federal funding formula that takes into account poverty census data so there are some fluctuations from year to year but it's not very dramatic and we do um like Miss Frederick said anticipate FY 26 to be level funded um the $74 million that we have um in this year's budget I don't anticipate we'll have the same amount next year because we will use more of the roll forward dollars this year than we have in the last few years um with the um sunsetting of Esser the funds are available for district use from July 1st through June 30th and all activities funded have to occur within that time frame we submit a Grant application in May and um all the expenditures we do from that July 1st through June 30th date have to be aligned with what was approved in the Grant and the state has really um put some tight restrictions or guidelines in place with regard to some of the um uses of funds specifically around consultant agreements professional learning travel so like Conference travel field trips or any kind of incentive pay and I will say that we don't use the title one allocation for incentive pay because it's we don't have um a plan in place that is approved by fdod to do that the allocation we're required by both federal and state laws to use the funds in particular ways there are um federal and state required set asides and then specific state requirements um for the use of funds this federal government requires that we hold back 1% of the title one allocation annually specifically for parent engagement activities the state allows us to reserve an additional 1% for district initiatives around family engagement so we do Reserve almost 2% there's an amount that's reasonable and necessary to um administer the Grant and to cover indirect costs and that the total of those cannot exceed 10% of the allocation we're required to set aside a necessary and reasonable amount for homeless programs so we coordinate with the mckin vento program which is Title Nine under Esa we administer funds or allocate funds for delinquent and neglected programs so foster care Transportation some tutoring for students in foster homes they're pre kindergarten programs so we've significantly increased investments in prek education over the last several years and um in this year $5.6 million is allocated out for um VPK Title One programs for migrant education um prek programs and for some extended day prek programs which extend the prek day to align with the extended day elementary schools so parents don't have to come to the school twice if they have a prek and um Elementary ed student we are required by law to set aside a proportionate share of these funds for students in private schools so Title One students in private schools so if they were zoned for a title one school and they end up at a private school and they meet the eligibility requirements for academically needy we must provide services the district holds those funds and um makes purchases on behalf or Contract Services on behalf of those private schools um the district can hold 1% um for schools to participate in Educational Services as a district we don't hold that 1% we just go ahead and allocate that out we we use it in the pot of money that's allocated out to the schools and then any funds that we roll forward they're not subject to those percentage thresholds so we are allowed to use those roll forward funds in a way that best serves uh the students in the schools all of the remaining funds after those allowable or required set asdes are distributed to schools based on Rank and serve and you heard Miss Frederick talk about the direct certification percentage the direct certification percentage times a 1.6 multiplier does equate to a free and reduced price lunch rate each of the schools is ranked um by that um percentage and then served accordingly the data that um is used you heard Miss Frederick reference date certain so that Friday of survey 3 week in February is used that's a snapshot date we take that data and we Rank and then serve those schools the thresholds that we use for determining who is eligible to receive Title One funds has not changed since the 1617 school year and that's because of State legislation that says we can go no higher than the thresholds that were established in 1617 so elementary middle and combination schools the eligibility threshold is 70% and for high school 67% and allocations to schools are based on a per pupil amount that's determined annually multiplied by the DC * 1.6 count and then each of the schools is required to develop a schoolwide plan and all of that information is aggregated and used to complete our Title One Grant application to the state this year we allocated out $47 million to 145 Title One schools um if we were to do the math and look at our allocation amount less all of those required and um allowable set asides um there was $41 million left over so6 million of the roll forward funds were actually um incorporated into the pot of money that was allocated to the schools um for their schoolwide allocation um the Multicultural Department um works with the title one part C program this is the migrant education program it's this year's $2 million the allocation to the district is based on the counts of students that are identified as migrant um or the and the number of students who um is identified as a priority for service meaning that they are um high risk there's a risk of them failing or dropping out of school um Based On A needs assessment funds are allocated for certain activities there's a lot of advocacy work in the schools for migrant students and families um there are tutorial opportunities there's a summer uh prek program and then there are social service facilitators who do that uh recruitment um identification process they work with the families to ensure they're availing themselves of the services offered to them um and um making sure the parents are able to participate in school-based workshops trainings those kinds of things to integrate them into the school system um title two part A is uh about $8.5 million this year again like um the majority of our uh entitlement grants the project period is July 1st through June 30th title 2 is really aimed at developing the capacity of teachers and instructional leaders to provide um um a quality education for the needest students so the district holds title 2 Funds at the district level there are no allocations out to schools it's used for professional development purposes um we have a lot of um literacy and other uh core content subject area Specialists who develop curriculum do professional development in schools we have support for um teachers who are learning their craft their par teachers there's leadership development there um the region instructional uh support staff and and the um instructional superintendent so those principal coaches are funded from title 2 title three is administered from the Multicultural Department again those funds July 1st through June 30th um any unspent funds can be rolled over into the next year the state looks at um needs assessment that looks at data for the district um the number of Ells in the district all contribute to how the all ation is is calculated for the district there are a lot of supports provided for English language Learners through title 3 um there are summer programs there are um Extended Learning opportunities so tutorials that are in addition to tutorials funded by title one so all of these are over and above um other services there are materials like dictionaries there's access to um computer programs that help with language acquisition there are resource teachers they dual language teachers by langual counselors there are so many um Support Services wraparound services for English language Learners covered through title 3 and then there's a subgrant of title 3 that is the Immigrant Grant and that those funds are allocated based on the number of immigrant Children and Youth and the significant increase in that number as compared to the two previous years and again these services are over and above and it's for a specific subset of um newly arrived immigrant students and there's professional development there are support services for a culturation or integration into our school system and then title four part a title for part A is um student supports and academic enrichment and this is a an interesting Grant because it has three distinct areas in which you must um allocate funds so you have to provide a well-rounded education safe and healthy learning environment and then um digital literacy so improving the digital literacy of students so um with that though there is a cap on technology devices and online programs so they really want to see like professional development of teachers to Better In instruction in digital uh literacy or student- centered um activities around digital literacy we use the title 4 allocation to provide Global education and dual language World Language instruction in several schools there's a reading recovery Intervention Program um we support um the universal um gifted screener and gifted endorsement support um creation of uh curricula that really enriches the education of our gifted students there's IB Program support um there are a lot of mental health and behavior initiatives in title 4 and the Train the trainer Trailblazer initiative and so then um the next program is the 21st century Community Learning Centers which this is an after school uh program and then we have our district I think receives more awards from 21st century than any other District uh in the state um and so this gives an overview of the schools where uh we do have um the 21st century program and that is a competitive program it's not an entitlement so that's why you know our district is applying and and we've been very competitive um uh with that and we continue to apply for them each year uh our our next Grant is the individuals with disabilities and Education Act our idea Grant and Miss Schultz is going to give an overview of that so the idea Grant is designed not to cover all services for students with disabilities it provides supplemental funding that is used to provide additional supports students with disabilities receive funding through the weighted formulas that we've had explained um and that funding follows their support Services as well this is an additional supplement to it so some of the things that the idea allocation is used for are a lot of it is goes to positions school-based positions as well as positions within the district um that provide supplemental and specialized Services resources and a lot of professional learning and so I really wanted to highlight for the professional learning um we do a lot of work within our schools um to help make sure that students are receiving the specialized instruction um support so that they're able to have their needs met and meet the graduation goals their post School outcomes it's very individualized planning so we provide a large amount of professional learning in larger settings some of which are listed here many of which are listed here but it also goes down into the school level into the classroom level working directly with teachers and with par professionals and so a lot of our work is very individualized and I just want to highlight the work that we do we do ESC prek supports we do communication assistive technology we work in academics doing a lot of work a lot of what you see here is related to reading instruction very specialized reading instruction to address students specific needs but also instruction designed for our students with most significant cognitive deficits on access points and modified curriculum um all the way up through our supports the what you see there the CBI cbbe SBE that's all related to programming for our students who are in transition years and getting ready to move out into the adult community so they have the skills necessary for to live the post school life that they would like to live um and all of this work I have to say one of the outcomes that we have found um that we've seen and the most recent graduation data indicates that we have closed the gap for our students with disabilities about 10 years ago it was a 26 Point Gap and now we're up to 2% closing on our general standard students so we're very excited with that outcome yeah we've seen significant Improvement and I know it's something the superintendent has highlighted and is so proud of proud of the work that you all are are doing um so that so that gives an overview I I know this is a long meeting today but it's a a good overview of um every component of the school district U budget how it's comprised and and what goes into the the school budget development process uh so just the again the considerations for um not only this year but beyond monitoring legislative changes um really monitoring the per student um funding increases F FRS uh potential increases in F FRS rates um all of that then leads into what's available for our salary considerations which is I know one of the the priorities significant priorities um of the board um continuing to monitor our enrollment just overall cost increases and and what if any changes we're going to see to the Federal grant programs um so what does this mean for the upcoming um budget advisory committee meetings um I have an overview here of the coming meetings and then what were anticipated to discuss during those meetings uh so our next meeting is uh March 14th um session starts on March 4th so we'll be able to be give a more robust legislative update and the legis legislative update that um I'll be providing is those that have a financial impact so I'm not focusing on all of those um that are academic and programmatic but those that will have a financial impact I'll be able to give an update on um en enrollment projections uh because we will have had our meeting with the state and that will finalized as well as where we stand in the current year I'll have an update um as well where the state has finalized what the voucher enrollment looks like for for our current year fy2 and we'll also be uh be giving a capital Plan update um then our next meeting is on March Friday March 28th so again continuing through the legislative uh session legislative update Capital Plan update and at that time we'll give an update um of from the Department budgets um as a result of that whole review process I do anticipate that we will there will be a need to add positions um in the Capital Area uh in order to provide support for the referendum that was just approved uh so I do anticipate that there will be some budget in increases um but know that um staff is U being very um uh sensitive to the fact of you know I I was very clear when I sent out the notification to the Departments that we are not looking for increases we are looking for um if you're looking to add you need to look to to cut someplace else um but I do know that there are going to be some areas especially in um Capital to like I said support the sales tax initiative where we will have to to make some additions in in um in positions and and additional budget uh so we'll give be able to give an update at that March 28th meeting uh Friday April 18th will be legislative update um Capital Plan update and you know that is really when when we would like to be done with the capital plan um but if not you know we also have um you know potentially on May 1 um if we're not if we still have some items we need to finalize in in April on the capital plan um and then that May 1st meeting um session ends on May 2nd um so we will know you know but by May 1st we will know final what are um funding is everything will be finalized by that time um so we'll be able to give the you know a final legislative update the final Capital plan if it doesn't go um if we don't discuss that on April 18th um and then the budget advisory committee will be working on their report to the board um and then I have Friday May 16th set aside um just in case we're going to need that and just key update upcoming dates after that time period uh ative budget adoption is and also the adoption board adoption of the capital plan is on July 30th and then final budget adoption is on September 10th and so with that we are we are done I I was estimating two hours uh so we did go a little bit over but I do think it was important um and I want to thank um everybody who came today uh you know Mr dufrain from the budget Department who's the one responsible for preparing this you know 300 Page budget document um Miss Leanne Evans Treasurer Nicole Smith director of federal state programs Mr Sanchez Chief Operating Officer and U Miss Schultz uh general manager in ESC so thank you all for for attending as well as all of the um advisory committee members uh Mr Rossi uh joined um and Mr Ferguson U board member he did join but he did have to log off as well so um so Mr Ferguson um was on the meeting so I want to thank you all and I know this was just an informational meeting so at our next meeting we will also be voting on the chair and vice chair um our current chair um is Sher Brown and she um has served more than four terms um so if there is somebody else who would like to be chair you know if you could please let me know um otherwise at our next meeting if if it's decided that um you would like Miss Sher Brown to continue as chair I would have to take that to the board for approval um since the normal term is two uh four years um and then uh if it's going to be extended we do have to go to the board for approval um and then with that I guess I will join are there any questions no I I have a couple comments when you're done okay I'm I'm done you done yes I'm done um I don't need any feedback from this and I know your staff meetings you think about all of this but there are pairs that are needed at all the schools and not enough people have been applying that's what I understand when I visit the schools and one of the reasons is that the average per hour rate for a paa is $12.31 at the latest is what I saw on for the school side I'm not sure if that's correct but they can get a job somewhere else making more money than if they applied to be a paa um I'd like to see increase in school's budget but I know that it's it's very difficult with what's going on this year and for the next several years um there is a need for more ESC teachers at the schools where they have a large population especially some of the severely disabled and then I want to give a shout out to Mara Andrews who's been a great supporter for the American relay cancers relay uh event this year it's going to be held at John I Leonard High School not at the fairgrounds and just to make sure that everybody signs up their teams and will be there for the event in March and the school district can have a team too okay well well thank you okay so I can just address um some of the items so with the uh PA professionals and their pay rate um no one makes less than $15 an hour at the school district uh so that so it I I don't know what the exact pay rate is for a pair professional but I know there are none that make less than 15 um and it is a challenge to hire the pair of professionals so it's not that we don't have them I mean we do agree um it's we have a lot of vacant positions and and I know that the ESC department does um great work with the resources that they that they do have um and so and they would also agree that they need more teachers um we did put in additional supplements um last year as part of bargaining in order um to give supplements um to it was um certain ESC staff because we want to uh recognize the additional work that they're doing um at the school uh locations I don't know if Miss Schultz if there's anything you'd like to add um definitely the the vacancies are something that we continue to work with and we do understand um because we we really try very hard to help schools support even when they have a vacancy that they're trying to fill and we know that that is ongoing work that we all keep working on um in terms of the supplements it's it it also part of the goal in that was to provide the support to the teachers who have been there and are doing the work so that they feel that their time is recognized it is a different job than a regular classroom teacher job and so that is something we continue to keep working toward okay um Miss Bonino or Mr Rossy do you either of you have any questions no I do not all right well thank you all for for joining and I will see you on our our next meeting thank you thanks