SCPS Budget Issues The preliminary budget deficit for 2012-2013 is $16.2 million.

The preliminary budget provides for recurring budget reductions of $12.2 million, with $4.0 million being covered with non-recurring funds. Due to the loss of $73.9 million in revenue since 2007-08, severe budget cuts have been made to the operating budget. Unless additional revenue sources are identified, additional budget cuts will be needed which will further negatively impact the school educational programs. Budget issues which may result in the need for additional budget cuts include: 1. The use of non-recurring fund balance for recurring budget costs, which will potentially result in the need for further recurring budget cuts for the following year (2013-2014). 2. The possible addition of two new charter schools, proposed at 1,362 students, with at a cost of $7.2 million. 3. The budget impact of State end of course testing requirements. 4. The budget impact of SB 736 (teacher performance). 5. The possible sequestration in January 2013 of Federal funding by Congress (potential reduction estimated to be from 8.5% to 9.5%). 6. Potential fuel cost increases. 7. The possible impact on the operating budget of IDEA Maintenance of Effort requirements. 8. The budget impact of the possible veto of HB 5005 (retirement), with a cost to SCPS of $5.5 million. 9. The impact of the loss of the Race to the Top Funding ($4,959,061 over four years), which ends on June 30, 2014.

SCPS OPERATING BUDGET

2011-2012 2012-2013 (Est.) 2012-2013 (Est.)

Net Recurring Deficit Funding Increase 2012-13 State Formula Revenue One-time Budget Savings Instructional Material Education Job Fund Early Retirement Reinsurance Program Use of Fund Balance Retirement Increase Other Cost Increases/Revenue Reductions* Net Estimated Deficit
*Cost increases include (1) State categorical programs , $1M, (2) charter schools, $.5M, (3) reserve for further declining enrollment, $1.3M and other miscellaneous increases of $1M. The main revenue reduction is due to a reduction in anticipated interest earnings, $.6M.

($19,840,183)

($19,840,183)

($19,840,183)

$7,331,854
(House Proposal)

$9,257,263
(Final Conference Committee)

$2,500,000 $13,328,674 $500,344 $3,511,165 ($6,730,000)

(SB 2100)

($1,233,000)
(3-13-2012 Estimate)

($4,414,865) $0 ($19,238,329) ($16,230,785)

(Work Session Book 3-13-2012, Page 5, Budget Deficit )

Revised 3-16-2012

Seminole County Public Schools is Ranked 62nd Lowest Out of 67 School Districts in the Per Pupil Funding p g
PerPupil Per Pupil Funding 7,728.49 6,481.07 6,337.10 6 229 14 6,229.14 6,205.22 6,028.09

Rank 1 22 46 58 62 67

District Monroe Brevard Orange Volusia V l i Seminole Suwannee

Orange County Receives Approx.

$132
more in per pupil funding.*

Source: 2012-13 FEFP Final Conference Report

* Does not include an additional $453 in funding per pupil received from the 1mill property tax levy ($83M) approved by voters.

Seminole County Public Schools - Millage Rate History

Fiscal Year 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

By State Law 5.786 5.564 5.456 5.205 5.001 4.698 5.097 5.277 5.355 5.474 5.446

Local Board 2.693 2.677 2.671 2.760 2.752 2.715 2.446 2.446 2.446 2.248 2.248

Debt Service 0.521 0.495 0.385

Total Millage Rate 9.000 8.736 8.512 7.965 7.753 7.413 7.543 7.723 7.801 7.722 7.694

Millage Decrease Since 2002-03: % Decrease Since 2002-03

-0.340 -5.9%

-0.445 -16.5%

-0.521 -100.0%

-1.306 -14.5%

Revised 4-2-12

POTENTIAL REVENUE OPTIONS

Voter approval of an additional mill for operating purposes $25 Million per year for 4 years Cost to average taxpayer $130 per year * Next elections August 14, 2012 (notification May 8, 2012) or November 6, 2012 (notification late August 2012) Cost to SCPS -0Voter approval of a cent sales tax for construction, renovation, repair and technology $28 Million per year Next elections August 14, 2012 (notification May 8, 2012) or November 6, 2012 (notification late August 2012) Cost to SCPS -0Allow Charter County Transportation System Surtax (1 cent sales tax) to cover school transportation costs **

Non-Binding Straw Ballot This is a no cost option that could be placed on a ballot to survey voter opinion. Proposed Ballot Language: Seminole County School District Ad Valorem Millage Election Shall the Seminole County School District ad valorem millage be increased by a total of one mill for essential operating expenses in order to preserve excellent academic programs, avoid closing schools, retain highly qualified teachers and protect arts, athletics and student activities beginning July 1, 2013, and ending four (4) fiscal years later on June 30, 2017, with annual reporting to ensure proper fiscal stewardship of these funds to the citizens of Seminole County? ______Yes: For the 1 mill levy ______No: Against the 1 mill levy Seminole County School District Half-Cent Sales Tax Surtax Shall a half-cent sales surtax be levied in Seminole County for ten (10) years beginning January 1, 2013 to provide for the st acquisition of equipment and technology creating a 21 Century learning environment; Renovation, Remodeling and Improvement of aging schools and Retirement of related debt. ______Yes: For the 0.5 cents (1/2%) sales tax ______No: Against the 0.5 cents (1/2%) sales tax

Poll A poll would be conducted by an organization not connected to SCPS requesting citizen input on additional funding.

* Based on the average home assessed value of $155,000 with a homestead exemption of $25,000 ** Requires both legislative and voter approval

Revised 3/27/12