1. Office of Administration and Support Division of Budgets and Financial Management 1

2. FY15FY16 General ( SEEK & Other )*$4,014,727,500$4,093,244,600 Federal$887,847,800$888,387,200 Restricted$32,777,300$33,909,800 Total$4,935,352,600$5,015,541,600 2 *includes $8.6 million necessary government expense in SEEK

3. Budget Summary House Bill 235 and 510 Enacted FY15FY16 SEEK per pupil amount$3,911$3,981 SEEK2,980,902,6003,009,490,600 KDE Operations24,163,70024,780,000 Flex Focus123,237,800154,629,900 Grant Programs196,093,400200,073,200 Health/Life Insurance674,146,600687,599,900 KSB/KSD16,183,30016,488,000 Total KDE General Funds4,014,727,5004,093,244,600 Restricted Funds32,777,30033,909,800 Federal Funds887,847,800888,387,200 TOTAL KDE FUNDS4,935,352,6005,015,541,600 3

4. FY15 196,093,400 FY16 200,073,200 This total includes numerous programs, including:  Community Education  Family/Youth Services (FRYSCs)  Gifted and Talented  Math Achievement  Read to Achieve 4

5.  Quarterly expenditure reports must be submitted to KDE by these dates: 1 st quarter, October 25; 2 nd quarter, January 25; 3 rd quarter, April 25; and 4 th quarter, July 25.  Quarterly expenditure reports will be reviewed by KDE staff to ensure that only allowable MUNIS codes are being budgeted and expended as according to the funding matrix.  If funds are budgeted to an unallowable code, the district must amend the budget and resubmit a new expenditure report to KDE showing the amendment. If funds are spent from an unallowable code, the district must reimburse the grant from their general fund. 5

6. What is the Flexible Focus Fund?  The Flexible Focus Fund (FFF) was created by the legislature beginning with the 2003-2004 state budget. Basically, the allocations for five categorical programs (Professional Development or PD, Extended School Services or ESS, Preschool, Instructional Resources (previously Textbooks), and Safe Schools) have been modified to permit the state and local school districts additional flexibility in the distribution of program funds while still addressing the governing statutes and serving the need and the intended student population. 6

7. Flexible Focus House Bill 235 Enacted FY15FY16 FLEXIBLE FOCUS FUNDS Extended School Services19,105,90025,510,700 Preschool71,315,30090,113,200 Professional/Staff Development8,848,80011,927,700 Safe Schools7,267,80010,378,300 Textbooks (K-8) 16,700,000 TOTAL FLEXIBLE FOCUS FUNDS123,237,800154,629,900 7

8.  All grants under flexible focus will be fifteen (15) month grants ending on September 30 th of the second year.  Funds cannot be moved from Preschool (FY09).  Funds can be moved within grants until the end of the 2 nd quarter or December 31 st.  Districts will be allowed to carry forward 10% in each of the Flex Focus grants (Instructional Resources excluded). Instructional Resource funds may be open for current year and one year prior.  All carry forward must be expended by December 31 st. 8

9. How will the district receive Flexible Focus Fund monies? The FFF allocation will come to the district in four (4) installments. The first will come as close to July 1 as possible. The second, third, and fourth payments will come at the beginning of the next three quarters (October, January, and April). 9 What does the “10% carry forward” mean? Each district will be allowed to carry forward up to 10% of the allocation for ESS, Safe Schools, PD, and Preschool. This balance must be expended by December 31 st.

10.  Per HB235, districts may utilize Flex Focus funds for general operating expenses. The Kentucky Department of Education (KDE) has established project 15FX in MUNIS for districts to move the funds into. Districts exercising this flexibility shall report to the KDE and the Interim Joint Committee on Education (IJCE) on an annual basis the amount of funds transferred. 10

11.  Once the need to transfer funds has been established at the district level (no prior KDE approval is necessary), the transaction will be entered into MUNIS as follows: EXAMPLE: District has $10,000 in FY15 Safe Schools 168A and wishes to transfer $5,000 to use for general operating. A budget amendment and journal entry would be made in MUNIS as: INCREASE 15FA by $5,000 using 220-5210-15FA (fund transfers in) DECREASE 168A by $5,000 using 0002113-0910-168A (fund transfers out)  Districts must budget these general operating funds into the appropriate object series/codes it will be expended from. EXAMPLE: $5,000 transferred into 15FA will be spent on supplies. District would use MUNIS 0600 series.  Districts would submit this project (15FA) in their quarterly CDIP submission. This will allow KDE to create a summary report to submit to the IJCE annually. 11

12. 12 Transferability FAQ’s Which programs may I transfer funds from? Extended School Services – 120X Professional Development – 140X Instructional Resources – 160X Safe Schools – 168X When may I transfer funds and how many transfers may I make? There are no statutory limitations on the number of times a district may transfer funds into, or from, an individual program during a fiscal year. However, the KDE requests that transfers are made after thorough planning and prior to December 31 of the grant year. Will there be a funding matrix for project 15FX? Yes, a funding matrix will be available, however, since the district may use the funds for general operating expenses, all org/object combinations will be allowable. Will I need to submit a report to the Legislative Research Commission ICJE as well? No, KDE will provide a summary report to the IJCE.

13.  Questions and Inquiries: Karen Wirth – Division of Budgets and Financial Management karen.wirth@education.ky.gov 13

14. For State Grant Allocations and Funding Matrix Information:  http://education.ky.gov/districts/fin/Pag es/State-Grants.aspx http://education.ky.gov/districts/fin/Pag es/State-Grants.aspx For assistance in Completing and Submitting School and District Improvement Plans:  http://education.ky.gov/school/csip/Doc uments/KDE_ASSIST_TechnicalGuide_CS IP-CDIP.pdf http://education.ky.gov/school/csip/Doc uments/KDE_ASSIST_TechnicalGuide_CS IP-CDIP.pdf 14

15. Questions? 15