BUDGET WORKSHOP
Presented By:Cindy Lesinski, CFO
OUR MISSION:
February 23, 2021
Protection of an excellent education
Protection of an effective workforce
Maintain the fiscal strength of the District
Protection of tax payer interests2
DISTRICT PRIORITIES
A high bar for student learning & excellence
Unsustainable cost structures Declining revenue
Before the pandemic, BPS faced a TRIPLE CHALLENGE
FINANCIAL OVERVIEW
A high bar for student learning & excellence
Unsustainable cost structures
Declining revenue
The pandemic grew our challenges at an exponential rate, as we navigate and plan for uncertainty in SY20-21 and SY21-22
Greater academic and social emotional student need
Greater financial pressure due to drop in sales tax revenue and reduced
student enrollment
Rising recurring costs with little flexibility in spending General Fund
allocations
FINANCIAL OVERVIEW
FY2020-21 IN REVIEW
State held district’s FEFP “harmless” based on 2020-21 projected enrollment
Allowed BPS to maintain critical staffing, programs, services to students, and operating levels
• BPS is an economic driver – No layoffs / No furloughs
Any district with enrollment growth will be funded proportionally by districts that enrollment declined; Brevard’s early projection estimated contribution is approx. $500K – 1.5M
GOOD NEWS FROM FDOE - #EO-7Maintains Financial Continuity for SY2020/21
Hold-harmless expected to sunset at the end of SY2020/21
Security $22.8M
Education Technology $37.6M
Facility Renewal $207.5M
2014 Surtax Program
TOTAL: $267.9M
Security $36M
Education Technology $36M
Facility Renewal $168M
Surtax Renewal Program(estimated)
6-YEAR TOTAL: $276M
Charter School Allocation $36M
POSITIVE BUDGET IMPACTS FROM HALF-CENT SALES SURTAX EXTENSION
Projected Health Insurance Trust Fund shortfall was $25.6M by 12/31/2021. Today, projected shortfall is $9.6M*
* Updated by prior consultant in December 2020 ** Projections as of May 2020 from prior consultant. Updated projections forthcoming from new consultant
POSITIVE STRIDES IN HEALTH CARE
School Board Action: $4.7M recurring contribution $5M one-time contribution into trust fund
Plan Design Changes: Total projected savings/revenue increase to trust fund,
$5.8M**
Employee premium increase on the existing health plan, revenue of $1.7M*Employees were also provided a network plan option with
no premium increase
Here’s What We Did:
District’s Share of ESSER Funding (one-time funds) = $15M
Currently expended/encumbered $8.1M (54%)
Funds available through September 30, 2022
BPS’ priority focus areas:
1. Academic Enhancements: Extended school day in high priority schools, year long
academic support and tutoring in every school, and extended ESE support services
2. Health & Safety Extensive PPE – sanitizer, masks, plexi-glass dividers,
disinfectant misting machines, enhanced HVAC filters, Custodial “Strike Team”
3. Technology Laptop computers and technical support services,
hotspot devices and services
4. Workforce Support Additional custodial staff and extended summer hours
for guidance counselors, 10-month administrators and support staff
Intended for one-time costs and should not align with recurring costs
POSITIVE BUDGET IMPACTS FROM ELEMENTARY & SECONDARY SCHOOL EMERGENCY RELIEF (ESSER)
ADDITIONAL COVID-19 EXPENSES(not funded through ESSER)
Additional Costs of COVID-19
Block Scheduling (SY2020-21) $600,000
Computer Replacements $240,000
Unemployment Claims (CY2020 & ½ of CY2021*) $900,600
Athletic Costs Not Covered by Gate $300,000
Increased COVID Related Health Care Costs $2,100,000
COVID Leave Costs $1,300,000
Increased HVAC Hours $1,900,000
Lost Revenue Due to COVID-19
Brevard Afterschool (Fiscal Years 2020 & 2021) $2,800,000
Facility Rentals (School/District) $142,700
Total $10,283,300
Will need to be addressed by end of FY2020-21
* 4th quarter of CY20 and quarters 1 & 2 of CY21 are estimates. The total represents what we paid, which was 50% of what was billed to the State.
LOOKING AHEAD FY2021-22 & BEYOND
BPS FTE GROWTH – BY TYPESchool Year District Gain/Loss Charter Scholarship Total Gain/Loss2010-11 66,797.38 - 3,398.28 1,017.00 71,212.66 - 2011-12 67,416.19 618.81 2,541.10 1,085.00 71,042.29 (170.37) 2012-13 66,780.35 (635.84) 2,503.38 1,245.50 70,529.23 (513.06) 2013-14 65,027.92 (1,752.43) 3,749.80 1,293.00 70,070.72 (458.51) 2014-15 65,536.16 508.24 4,272.50 1,310.65 71,119.31 1,048.59 2015-16 65,292.30 (243.86) 4,972.73 1,368.50 71,633.53 514.22 2016-17 65,681.74 389.44 5,312.52 1,414.00 72,408.26 774.73 2017-18 65,210.75 (470.99) 5,896.54 1,359.50 72,466.79 58.53 2018-19 64,772.03 (438.72) 6,538.71 1,334.95 72,645.69 178.90 2019-20 64,508.63 (263.40) 6,904.35 1,693.14 73,106.12 460.43 2020-21* 64,439.48 (69.15) 7,554.58 1,695.37 73,689.43 583.31 2021-22P** 61,738.41 (2,701.07) 7,575.08 1,978.57 71,292.06 (2,397.37)
All figures from 2010-2020 are from the Final FEFP Calcualtions*2020-21 figures are from the 2nd FEFP Calculation**2021-22P figures are projected
Estimated 2021-22 revenue loss due to enrollment decline is $20.7M
66,797.38 67,416.19
66,780.35
65,027.92 65,536.16 65,292.30 65,681.74
65,210.75 64,772.03 64,508.63
60,560.67 61,738.41
3,398.28 2,541.10 2,503.38
3,749.80 4,272.50
4,972.73 5,312.52 5,896.54
6,538.71 6,904.35 7,401.57 7,575.08
1,017.00 1,085.00 1,245.50 1,293.00 1,310.65 1,368.50 1,414.00 1,359.50 1,334.95 1,693.14 1,932.17 1,978.57 -
2,000
4,000
6,000
8,000
10,000
60,000
62,000
64,000
66,000
68,000
70,000
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21* 2021-22**
District District Hold Harmless Charter Charter Hold Harmless Scholarship Scholarship Hold Harmless
BPS FTE GROWTH BY TYPE
524,585,924532,256,136
554,598,163
565,927,939
554,447,525
591,244,229
2018 2019 2020 2021 2022 2023
BPS Funding BPS Funding Trend Funding Estimate without Hold Harmless EDR Forecast
In 2020/21 Hold Harmless allowed school districts to keep the entirety of estimated per student funding even if the actual enrollment was down
HOW DO WE MANAGE FUNDING REDUCTIONS?
All models are wrong but some are useful
In 2021/22 Law makers intend to align the per student funding to actual enrollment
↑ COVID HITS ↑ VACCINATIONS BEGIN
Classroom Teacher (40% of 1.0 FTE)
Other Staffing & Fixed Operating Expenses (60% of 1.0 FTE)
NOTE: List above provides some examples, but is not exhaustive and represents approximations
$3,075
$4,605
School-Based Staffing: Media Specialists Guidance Counselors PE, Art, Music, STEAM, Drama, and
Electives Teacher Social Workers School Nurses Instructional Assistants Technology Specialists School Resource Officers Custodians
Transportation Bus Drivers Routers Mechanics Fuel
Utilities Maintenance Services HVAC Electricians Plumbers Carpentry
HOW 1.0 FTE IS ALLOCATED1.0 FTE = $7,680
Loss of FTE
Revenue for 100 Students
Less Loss of FTELoss of
Teacher(s) Expenditures
Revenue Shortfall to be
made up by the District
767,991.00 0.00 767,991.00 0.00(1) 760,311.09 0.00 767,991.00 (7,679.91)
(10) 691,191.90 0.00 767,991.00 (76,799.10)(20) 614,392.80 (61,478.55) 706,512.45 (92,119.65)(40) 460,794.60 (122,957.10) 645,033.90 (184,239.30)(60) 307,196.40 (184,435.65) 583,555.35 (276,358.95)(80) 153,598.20 (245,914.20) 522,076.80 (368,478.60)
(100) 0.00 (307,392.75) 460,598.25 (460,598.25)
Aligning staffing with enrollment makes up only 40% of the projected loss
RELATIONSHIP OF REVENUE/EXPENDITURESExample of a Reduction of 100 Students (FTE)
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
(1) (10) (20) (40) (60) (80) (100)
Revenue ExpendituresNote: Reductions in Intervals of 20 students = 1 classroom does not automatically presume the reduction of a classroom teacher
Enrollment Stability
FRS Increase
Employee Compensation (compression)
State Budget Uncertainty
Self-Insured Medical Plan
Additional COVID-19 Expenses not funded by ESSER
Overall Financial Condition
2020-21 BUDGET CHALLENGES
These challenges will continue into FY2021-22 and the State budget remains uncertain
Recurring CostsHealth Care $5,700,000FRS Contribution $2,200,000SRO’s $360,000$10 Min Wage for 2022 $87,000Grant-Style Expenditures $1,000,000Total $9,347,000Non-Recurring CostsHealth Care $7,000,000Textbook Adoption $10,000,000Total $17,000,000
The full impact of enrollment decline is uncertain
Increased health care costs – based on preliminary projections $5.7M (recurring) contribution
$7M one-time contribution to meet reserve requirements
Increase in Florida Retirement System contribution -$2.2M (recurring)
Increased (recurring) costs in services
SROs - $360K $10 min wage for 2022 - $87K Grant-style funded positions & athletic subsidy - $1M
Underfunded textbook adoption – early estimate $10M (non-recurring)
WHAT WE KNOW... 2022 WILL BE CHALLENGING
Continued increases in FRS
Textbook adoption
Rising Health Care costs
Enrollment
FY23 & BEYOND BUDGET CHALLENGES
Estimated increase in minimum wage (not cumulative): FY22 - $10 on 9/30/21 – $ 87K FY23 - $11 on 9/30/22 – $ 57K FY24 - $12 on 9/30/23 – $127K FY25 - $13 on 9/30/24 – $988K FY26 - $14 on 9/30/25 – $2.5M FY27 - $15 on 9/30/26 – $ 3.6M
Current Budget analysis for reductions and/or cuts
Fund Balance analysis to meet one-time expenses
NEXT STEPS/PREPARATIONS Developing ongoing academic support
and acceleration plans
Enrollment recovery efforts
Enrollment marketing plan
Protection of an excellent education
Protection of an effective workforce
Maintain the fiscal strength of the District
Protection of tax payer interests21
DISTRICT PRIORITIES
Senate and House indicating the lack of revenue to fund the Governors budget
Governor’s Budget serves as a guide to his fiscal priorities
Teacher Pay Allocation - $550M…increase of $50M to continue raising the minimum K-12 teacher salary to $47.5K
Mental Health - $110M …increase of $10M over current year funding
Per Student funding – increases by $243
FRS Employer Rate Increase
2020-21 BUDGET ADOPTION TIMELINE March 23, 2021 – Capital Outlay Workshop
April 13, 2021 - Budget Update Workshop
June 8, 2021 – Budget Update Workshop (Tentative)
July 24, 2021 – Advertisement of 2021-22 Tentative Budget
July 29, 2021 – 1st Public Hearing on Budget
September 9, 2021 – Final Public Hearing on Budget
THANK YOU