At the School Board Workshop on May 3, Kendra L. Sittig, Director of Budget presented Budget Amendment #3 for quarter ending March 31, 2016. She explained that although overall revenues increased by nearly $900,000, the increase was offset by a decrease in FEFP (a state program called Florida Education Finance Program) funding. The majority of the decrease in funds extend from adjustments for McKay Scholarships, $1,680,497. McKay Scholarships are designated for students with certain disabilities in order to give their parents an option in obtaining a private school education. Dr. Romano explained that the school district funding for that student is transferred directly to the chosen school site.
Although the school district loses their allocation for those students, they no longer have to expend the educational costs for that student. The costs of educating the student falls on the private school that receives the scholarship. The school district looks at it as a loss in funding nonetheless.
Dr. Romano explained that the school district is required by state law to notify families of this option if the student is eligible. She also explained that the process to determine the learning disability and eligibility for the program is costly, but admits that the state does provide a weighted component of FEFP funding for providing the service and they also receive federal dollars through individuals with disabilities education act.
Heather Martin, Executive Director of Business Services, states that they project an increase in McKay scholarships every year. Right now they are at $1.8 million per year and that has significantly grown over the past few years.
The total overall net decrease in revenue was $616,915. The ending fund balance is estimated at $5,881,682 or 3.77% of General Fund revenues, and includes reserves (Nonspendable) for inventory in the amount of $1,422,762 and (Restricted) State Required Categorical Programs and Workforce Development Program in the amount of $1,216,543. The estimated Assigned/Unassigned ending fund balance is $3,242,377, which is 2.08% of General Fund estimated revenues.
At the June 7 workshop, Martin and Sittig will be presenting budget reduction strategies.