1. 1 The FLORIDA EDUCATION FINANCE PROGRAM (FEFP) and Charter Schools Florida’s Charter School Conference November 18, 2009

2. Tools Charter School Revenue Estimating Worksheet (http://www.fldoe.org/fefp/chartinst.asp) FEFP Calculations (http://www.fldoe.org/fefp/offrfefp.asp)http://www.fldoe.org/fefp/offrfefp.asp Florida Statutes 2

3. Cash Flow to Charter Schools Three funding variables:  Weighted full-time equivalent (FTE) students  Certified property tax rolls  Collection of state taxes and lottery proceeds 3

4. Sources of FEFP Data ProjectionsDistricts project next year’s FTE based on historical FTE. SurveysDistricts submit four funding surveys (1, 2, 3, and 4) and Survey 5. EstimatesDistricts provide February Annualization Factors and June Estimates.

5. Accurate projection of WFTE is the most important variable Example: Charter school projects 100 WFTE and October survey is 75 WFTE  Annual revenue will be adjusted to 75 percent of the planned budget  Cash flow will be approximately 50 percent of cash flow for the first months of the year if the WFTE doesn’t increase in the February survey 5

6. FTE Survey Dates/FEFP Calculations

7. FEFP Calculations & FTE Surveys CalculationWhenData Source 1 st Calculation Immediately after Legislative Session Survey 1 – Projection Survey 4 – Projection Survey 2 – Projection Survey 5 – Prior Year Est. Survey 3 – Projection 2 nd Calculation July – Upon receipt of Tax Roll Survey 1 – Projection Survey 4 – Projection Survey 2 – Projection Survey 5 – Prior Year Est. Survey 3 – Projection 3 rd Calculation Upon receipt of Survey 2 Survey 1 – Actual Survey 4 – Estimate Survey 2 – Actual Survey 5 – Prior Year Act. Survey 3 – Estimate 4 th Calculation Upon receipt of Survey 3 Survey 1 – Actual Survey 4 – Estimate Survey 2 – Actual Survey 5 – Prior Year Act. Survey 3 – Actual Final Calculation After Final Update of Survey 4 Survey 1 – Actual Survey 4 – Actual Survey 2 – Actual Survey 5 – Prior Year Act. Survey 3 – Actual

8. FTE Students 2,608,006.73 (projected) Lab School Discretionary Contribution $11,385,801 × Merit Award Program $20,000,000 Reading Allocation $101,923,720 ESE Guaranteed Allocation $981,724,365 Gross State, Local, and Federal FEFP $13,812,347,768 Required Local Effort (5.314) $7,801,236,524 Net State FEFP $5,103,191,069 Supplemental Academic Instruction $637,781,383 Safe Schools $67,260,840 0.748 Mill Compression $146,902,367 2009-10 FEFP Calculation Weighted FTE Students 2,802,487.98 Program Weights Base Student Allocation (BSA) $3,630.62 District Cost Differential (DCD) Calculation Base Funding $10,177,089,512 Declining Enrollment Allocation $23,105,233 Sparsity Supplement $35,822,046 =××= ++++ ++ = = ++ School Recognition Program $129,914,030 = + + Class Size Reduction $2,845,578,849 – DJJ Supplemental Allocation $10,258,490 + + + State Fiscal Stabilization Allocation $907,920,175 Instructional Materials $216,031,121 Teachers Lead $33,283,309 Student Transportation $428,931,491 +++ Total State Funding $8,078,683,948 Minimum Guarantee $12,927,915 +

9. 9 Authority: s.1011.62(1)(a), F.S. FTE Students (UFTE) The 2009-10 unweighted student enrollment projection is 2,608,006.73 This represents a decrease of 9,999.73 or 0.38% students from 2008-09.

10. 10 Unweighted FTE Programs 101 - Basic, Grades K-3 102 - Basic, Grades 4-8 103 - Basic, Grades 9-12 111 - Basic, Grades K-3 with ESE Services 112 - Basic, Grades 4-8 with ESE Services 113 - Basic, Grades 9-12 with ESE Services 130 - ESOL 254 - ESE, Level IV 255 - ESE, Level V 300 - Career, Grades 9-12

11. 11 Appropriations Act Program Weights X Program weights recognize varying program costs Basic, Grades K-3 (101)1.074 Basic, Grades 4-8 (102)1.000 Basic, Grades 9-12 (103)1.033 ESE, Level IV (254)3.520 ESE, Level V (255)4.854 ESOL (130)1.124 Career, Grades 9-12 (300) 1.050 Students who receive ESE services but are not in ESE Level IV or V programs are reported as Basic Program Students in the appropriate grade level. Basic K-3 with ESE services (111) 1.074 Basic 4-8 with ESE services (112) 1.000 Basic 9-12 with ESE services (113) 1.033

12. 12 Authority: s.1011.62(1)(d), F.S. Weighted FTE Students (WFTE) The 2009-10 weighted student enrollment projection is 2,802,487.98. This represents a decrease of 13,364.75 or (.47%) weighted FTE students from 2008-09. This includes special add-ons for: Isolated Schools Supplement Small District ESE Supplement Advanced Placement (AP) International Baccalaureate (IB) Advanced International Certificate of Education (AICE) Industry certified career and professional academy programs Florida Virtual School Additional FTE for students who are also enrolled in a school district Group 2 over cap =

13. 13 Authority: s.1011.62(1)(b), F.S. Base Student Allocation (BSA) The Base Student Allocation (BSA) is determined annually by the Legislature in the General Appropriations Act. Funding Summary: 2009-10 $3,630.62 2008-09 $3,886.14 Decrease ($255.52) or (6.58%) X

14. 14 Authority: s.1011.62(2), F.S. District Cost Differential (DCD) The District Cost Differential (DCD) is an adjustment that recognizes differences in the cost of living among the school districts. X

15. 15 Authority: s.1011.62, F.S. Base Funding = Weighted FTE x BSA x DCD = Base Funding Funding Summary: 2009-10 $10,177,089,512 2008-09 $10,942,625,443 Decrease (7.00%)

16. Charter School Revenue Estimating Worksheet – Base Funding 16

17. 17 Authority: s.1011.62(8), F.S. Declining Enrollment Supplement In those districts where there is a decline between prior year and current year student enrollment, 25% of the decline is funded. Funding Summary: 2009-10 $23,105,233 2008-09 $46,084,243 Decrease ($22,979,010) or (49.86%) +

18. 18 Authority: s.1011.62(7), F.S. Sparsity Supplement Provides $35,822,046 for a Sparsity Supplement to recognize differences in sparsity of student population. Eligibility is limited by proviso in the General Appropriations Act to districts with 20,000 or fewer UFTE students. Eligible districts’ sparsity supplement funds are adjusted for district wealth and potential funds per FTE. Funding Summary: 2009-10 $35,822,046 2008-09 $38,345,157 Decrease ($2,523,111) or (6.58%) +

19. 19 Authority: 1011.62(5), F.S. 0.748 Mill Discretionary Compression Provides $146,902,367 to fund any difference between (1)the amount generated by a 0.748* mill levy and (2)an amount equal to the state average multiplied by district’s unweighted student enrollment. Funding Summary: 2009-10 $146,902,367 *If any school district chooses to levy an amount not less than 0.498 mills and less than 0.748 mills, a supplement shall be calculated on the 0.498 mills. +

20. 20 Provides $11,385,801 for Lab School Discretionary Contribution Lab Schools and the Florida Virtual School (FVS) are separate school districts for purposes of FEFP funding. The funds for the lab schools and the FVS are authorized in lieu of discretionary local tax revenue. The Florida Virtual School funding is based on the maximum allowable per student discretionary millage times 95% of the current year’s taxable value for school purposes. This amount is then multiplied by the prorated FTE of the Virtual School. Funding Summary: 2009-10 $11,385,801 2008-09 $6,269,108 Increase $5,116,693 or 81.62% Lab School Discretionary Equalization Authority: s.1002.32(9)(a), F.S. s.1002.37(3)(f), F.S.

21. 21 Authority: Appropriations Act 1011.62(6) Safe Schools Provides $67,260,840 for Safe School activities. Minimum allocation is $65,387 Two-thirds is allocated based on each district’s crime index published by Florida Department of Law Enforcement One-third is allocated based on the district’s unweighted student enrollment. Funding Summary: 2009-10 $67,260,840 2008-09 $71,998,330 Decrease ($4,737,490) or (6.58%) +

22. 22 Provides $981,724,365 for educational programs and services for exceptional students who would have been funded in Levels I, II, or III in school year 1999-2000. These exceptional students will also receive weighted FTE funding in the FEFP, using the appropriate Basic Program weight for their grade level. The ESE Guaranteed Allocation will not be recalculated during the school year. Funding Summary: 2009-10 $981,724,365 2008-09 $1,056,618,468 Decrease ($74,894,103) or (7.09%) + Authority: s.1011.62(1)(e), F.S. ESE Guaranteed Allocation

23. Charter School Revenue Estimating Worksheet – ESE GA 23

24. 24 Authority: s.1011.62(1)(f), F.S. Supplemental Academic Instruction Provides $637,781,383 for Supplemental Academic Instruction (SAI). First priority for use of these funds is the provision of supplemental intensive instruction, consistent with the Sunshine State Standards, including summer school and intensive English immersion instruction, for students in grades 3 and 10 who scored Level I on the FCAT. The SAI allocation will not be recalculated during the school year. Funding Summary: 2009-10 $637,781,383 2008-09 $687,015,407 Decrease ($49,234,024) or (7.17%) +

25. 25 Authority: s.1011.62(9), F.S. Reading Allocation Provides $101,923,720 for a K-12 comprehensive, district-wide system of research-based reading instruction. Funding Summary: 2009-10 $101,923,720 2008-09 $109,102,676 Decrease ($7,178,956) or (6.58%) +

26. Charter School Revenue Estimating Worksheet – SAI & Reading 26

27. 27 Authority: 1012.225, F.S. MERIT AWARD PROGRAM (MAP) Provides $20,000,000 to assist school districts with implementation of performance pay policies for instructional personnel and school based administrators in accordance with the requirements of law. Funds are allocated on Base Funding. Funding Summary: 2009-10 $20,000,000 2008-09 $32,072,461 Decrease($12,072,461) or (37.64%) +

28. 28 Provides $10,258,490 for Department of Juvenile Justice (DJJ) Supplemental Allocation. These funds are used to supplement other sources of funding for students in juvenile justice education programs. The allocation is based on the WFTE in the juvenile justice education programs times both the state average class size reduction factor ($896.83) and the district cost differential. Funding Summary: 2009-10 $10,258,490 2008-09 $10,502,092 Decrease ($243,602) or (2.32%) DJJ Supplemental Allocation Authority: 1011.62(10) +

29. 29 Authority: s.1012.71, F.S. Florida Teachers Lead Provides $33,283,309 for Florida Teachers Lead Program Appropriation. Funds appropriated for the Florida Teachers Lead Program Stipend are provided to purchase classroom materials and supplies used in the instruction of students in kindergarten through grade 12 of the public school system. Until 2009-10, Florida Teachers Lead Program was funded as a Categorical Program. Funding Summary: 2009-10 $33,283,309 2008-09$36,756,829 Decrease($3,473,520) or (9.45%) +

30. 30 Authority: s.1011.68, F.S. Student Transportation Provides $428,931,491 for Student Transportation. The Student Transportation funding formula provides funds for school district transportation based on each district's pro rata share of state transported students. Additional funding is provided for the transportation of certain disabled students. Adjustments are made for cost of living differences, percent of population outside of urban centers, and an efficiency factor that is based upon the average number of eligible students transported per bus in daily service to encourage greater bus utilization. Until 2009-10, Student Transportation was funded as a Categorical Program. Funding Summary: 2009-10 $428,931,491 2008-09$460,903,559 Decrease($31,972,068) or (6.94%) +

31. 31 Authority: s.1011.67, F.S., and s. 1006.40(1), F.S. Instructional Materials Provides $216,031,121 for Instructional Materials. $208,776,893 is available for instructional materials growth and maintenance. Growth will be funded at $296.81 per FTE and maintenance will be prorated from the remaining funds. Reimbursement to public community colleges or universities for instructional materials used by dual enrolled students is paid by each district. From the total growth and maintenance allocation $11,908,421 is provided for Library Media and $3,254,969 is provided for purchase of Science Lab Materials and Supplies. Until 2009-10, Instructional Materials was funded as a Categorical Program. Funding Summary: 2009-10 $216,031,121 2008-09$253,945,129 Decrease($37,914,008) or (14.93%) +

32. 32 Authority: American Recovery and Reinvestment Act State Fiscal Stabilization Allocation Provides $907,920,175 for the State Fiscal Stabilization Allocation. + American Recovery and Reinvestment Act (ARRA) funds. Each Fund is prorated on base FEFP funds and included in the Total FEFP funds. State Fiscal Stabilization Allocation (Education) $875,025,819 State Fiscal Stabilization Allocation (Discretionary) $32,894,356

33. 33 Authority: s.1011.62(11), F.S. Minimum Guarantee Provides $12,927,915 for a minimum guaranteed level of funding. Provides no greater than a 10 percent reduction per unweighted full-time equivalent (UFTE) student compared to the amount per UFTE funded in the 2008-2009 FEFP. Funding Summary: 2009-10 $12,927,915 2008-09$ 0 Increase$12,927,915 +

34. 34 The sum of all the FEFP components in the preceding slides is the Gross State, Local, and Federal FEFP. Funding Summary: 2009-10$13,812,347,768 2008-09 $13,131,502,537 Increase $680,845,231 or 5.18% = Authority: s.1011.62(11)(a), F.S. Gross State, Local, and Federal FEFP

35. 35 Authority: s.1011.62(4), F.S. Required Local Effort (RLE) Required Local Effort (RLE) is the amount that each district provides annually toward the cost of the Florida Education Finance Program. The Legislature prescribes the aggregate RLE for all school districts collectively as an item in the General Appropriations Act. The total adjusted amount for RLE is $7,801,236,524. This represents a state average millage rate of 5.314. The millage rate is reduced for any district with ad valorem tax proceeds exceeding 90 percent of the district’s FEFP formula entitlement. Funding Summary: 2009-10 $7,801,236,524 2008-09 $8,249,604,587 Decrease ($448,368,063) or (5.44%) -

36. 36 The Net State FEFP is the Gross State, Local, and Federal FEFP less the Required Local Effort and Federal Dollars. Funding Summary: 2009-10 $5,103,191,069 2008-09 $4,863,453,217 Increase $239,737,852 or 4.93% = Authority: s.1011.62(11)(b) F.S. Net State FEFP

37. 37 Authority: Appropriations Act and 1001.453(2) s.1008.36, F.S. Discretionary Lottery / School Recognition The total appropriation is $129,914,030, all of which goes to the allocation for School Recognition Awards. School Recognition Awards are $75 per student. Any remaining funds are allocated based on each district’s base funding. Funding Summary: 2009-10 $129,914,030 2008-09 $212,710,203 Decrease ($82,796,173) or (38.92%) +

38. Charter School Revenue Estimating Worksheet – Other FEFP Components 38

39. Charter School Revenue Estimating Worksheet – Other FEFP Components 39

40. Class Size Reduction Categorical Class Size Reduction is now the only major categorical. Funding Summary: 2009-10 $2,845,578,849 2008-09 $2,729,491,033 Increase$116,087,816 or 4.25%

41. Charter School Revenue Estimating Worksheet – Class Size Reduction 41

42. 42 Authority: s.1002.33(20), F.S. Administrative Fee School district must provide certain services to charter schools in exchange for withholding an administrative fee. Contract management FTE and data reporting ESE administration Test administration Information services Other services related to the federal lunch program

43. 43 Authority: s.1002.33(17), F.S. Administrative Fee Calculation Total fee shall be calculated on up to 5 percent of the available funds including: FEFP, state and local District Discretionary Lottery Discretionary Millage Class Size Reduction (Categorical) A sponsor may only withhold up to 5 percent for charter schools with an enrollment up to 500 students. If more than 500 students, the difference between the total fee calculation and the amount to be withheld may only be used for capital outlay purposes as specified in s. 1013.62(2), F.S.

44. Contact Information Office of Funding and Financial Reporting (850) 245-0405  Martha Haynes, Administrator martha.haynes@fldoe.org