Slide 1 – State Budget Preparation Module
Notes: The state budget preparation module has been developed to provide summary information about the timing, policies and data that are considered in the development of the state budget and more specifically the budget for education.  The module will emphasize grades K-12 education funding.   

Slide 2 – Annual Budget Calendar
Language: 
•	June – September: Commissioner of Education and State Board of Education budget development and approval for October 15 submission to Governor and Legislature.
•	December – January: Preparation and release of Governor’s recommended budget.
•	March – May: Legislature prepares annual General Appropriations Act and associated legislation.
•	May: Veto window for Governor’s vetoes.
Notes: The annual state budget calendar includes bench mark dates that establish a framework for the annual state appropriation.  At each step in the process, the policies, data and funding for all state services including education programs are analyzed.  The final outcome of the budget process is a General Appropriations Act and related implementing legislation.   
The state and school district fiscal year begins annually on July 1 and ends on June 30.

Slide 3 – Constitutional Budget Requirements
Chart:
The chart depicts the state budget process.
Notes: The state budget process has its roots in provisions of the Constitution of the State of Florida.  Key provisions are highlighted on this slide.  The state must maintain a balanced budget.  That is, state expenditures cannot exceed anticipated revenues.

Slide 4 – State Policy and Budget
Language:
•	The only item of business the Legislature is legally required to perform annually is adopt a budget.
•	If there are inconsistencies in legislation, the last bill that passes prevails.
•	“Proviso” is the language in the General Appropriations Act that explains how an allocation is to be spent. It has the effect of law for that fiscal/budget year. 

Notes:  The state budget is a statement of expenditure priorities among all state services.  Budget proviso, the appropriations implementing bill and related legislation establish the annual legal basis for implementation of the adopted state budget.

Slide 5 – Florida’s Tax Structure
Language: 
“Florida’s sales tax exemptions are diverse and often difficult to characterize." Report Prepared for
the Florida Senate, August 2000
Notes: Over the years, there have been reviews and studies of the sales tax exemptions; an example of such a review is cited here.  The list of current exemptions is quite long and diverse.  The state sales tax is the primary source of funds for the state general revenue fund.

Slide 6 – 2016-17 Statewide Funds Operations and Fixed Capital Outlay = $82.3 billion 
(amounts in billions) (after vetoes)
Chart:
The pie chart depicts the breakdown of funds in the state budget of the 2016-17 fiscal year.
Notes: The pie chart describes the total funds appropriated in the state budget for operations and fixed capital outlay for the 2016-17 fiscal year.  Education is second to Health/Human Services in receiving the largest share of the total state budget.
Education (including BOG, SUS, FCO, and Early Learning) received $23.9 billion which is 29% of the total state share of all funds. This is an increase of $716 million for education from 2015-16, but a decrease of .39% of the total budget.

Slide 7 – 2016-17 General Revenue Funds Operations and Fixed Capital Outlay = $30.3 billion 
(amounts in billions) (after vetoes)
Chart: 
The pie chart depicts the GR funding.
Notes:  This pie chart describes GR Funding among state delivery sectors.
Education received the greatest share of General Revenue funds. Education received $15.1 Billion or 52% of the state GR fund.

Slide 8 – Quote
Language:
“Florida schools faced a multitude of accumulated crises.  Salaries were too low, buildings were in need of repair, additional classrooms were desperately needed.  Enrollments were expanding rapidly and a breakdown in the state’s school system threatened unless speedy action was taken.”		-1946 Report
Notes: Over time, there has been a legacy of reports about K-12 education prepared by various groups with state-wide interests.  The reports resulted in revisions to policies about the education of Florida students as well as funding to solve pressing problems in Florida schools.  
One such report was prepared in 1946 and resulted in a new funding formula for public school education.  The formula was called the Minimum Foundation Program or MFP.  It remained in law  as the means for allocating  state and local funds  for education programs in Florida schools.  

Slide 9 – Governor’s Citizens Committee on Education
Language:
The Legislature should continue to repeal statutes that unduly restrict the local school districts.  The Legislature should establish new policy through the use of educational objectives that specify only what is to be accomplished, not how local school districts are to implement the objectives.  - 1972 Study of Florida’s Educational System
Notes: A 1972 report by a Governor’s Citizen’s Committee included policy recommendations about the governance of public school education. 

Slide 10 – Governor’s Citizens Committee on Education Cont.
Language: 
The State Board of Education should thoroughly review existing regulations and remove those that are unduly restrictive to local school districts.  Regulations of the board should specify objectives and state policy, not prescribe exactly how state policy is to be implemented. - 1972 Study of Florida’s Educational System
Notes: The finance component of the report has been credited with the repeal of the MFP and replaced it with a student enrollment driven formula called the Florida Education Finance Program (FEFP).  Although the FEFP has undergone revisions since its original enactment in 1973, it remains as the formula for the allocation of state and local operating funds to Florida school districts.   

Slide 11 – Florida Constitution
Article IX, Section 1
Language:
“The education of children is a fundamental value of the people of the State of Florida. It is, therefore, a paramount duty of the state to make adequate provision for the education of all children residing within its borders.  Adequate provision shall be made by law for a uniform, efficient, safe, secure, and high quality system of free public schools that allows students to obtain a high quality education ... .” 
Notes: The constitution of the State of Florida is the primary source of education policy and funding.  The viability of policies established in law are measured against their constitutionality.

Slide 12 – No Title
Language:
Education is an investment in human capital, not an expense.
Notes: A democratic society must stake its future in an informed and educated electorate.  Economists have observed that education is an important societal investment in human capital.  This observation has become even more important in the information age.  

Slide 13 – Florida Funding for Education
Language:
•	The General Revenue (GR) fund is the primary state-funded discretionary source for legislative appropriations.
•	The state sales tax provides 73.9 percent of the GR funding.
•	The K-20 Education Budget has historically been appropriated at least 50 percent of the GR funds.
•	Florida Public Schools are funded with federal, state and local funds.
Notes: Funding for education in Florida is a funding partnership comprised of federal, state and local funds.  The state general revenue fund is the primary source of state funds for education.

Slide 14 – What Percentage of the Total State General Revenue Fund Appropriations Has Gone to Education? 
(Millions of Dollars)
Chart:
The chart depicts percentages of the GR fund to education. 
Notes: There are several general fiscal measures that those with a particular interest in education funding monitor in order to understand the priority for education in the state budget process.  One measure is the annual percentage of state general revenue funds appropriated for education as a percentage of total general revenue appropriations.
The purpose of this table is to demonstrate the continuity of General Revenue appropriations for education since the inception of the Florida Lottery. The Educational Enhancement Trust Fund supplements, but does not supplant, state funding of education through the General Revenue Fund and other revenue sources. This chart excludes fixed capital outlay appropriations.
Data for this chart are available from OPB/Governor’s Office of legislative staff. The Florida Department of Education does not have access to LAS/PBS data other than Education.

Slide 15 – Florida Education Finance Program (FEFP) – Total Funding
Chart: 
The chart depicts total funding for FEFP.
Notes: The primary source of operating funds for public school education is the Florida Education Finance Program (FEFP).  One fiscal measure for the FEFP is the history of total state and local funds distributed through the FEFP formula. This graph displays the history of FEFP funds from 2006-07 through 2015-16.  In response to the decline in state and local revenues as a result of the Great Recession, in 2009-10 and 2010-11 federal stabilization funds were distributed to school districts through the FEFP formula.  As indicated, the total funds and the state funds now exceed pre-recession bench marks. Greater detail about the FEFP formula is provided in that module.

Slide 16 – Florida Education Finance Plan (FEFP) - Funding per FTE
Chart:
The chart depicts funding per FTE.
Notes: A second fiscal measure for the FEFP is funding per unweighted full-time equivalent student, generally referred to as funding per FTE.  Because of a history of growth in public school education, this fiscal measure is often cited as a more valid measure because it accounts for the changes in student enrollment in the schools.  On this measure, the data indicate that funding per FTE now exceeds pre-recession bench marks.    

Slide 17 – Florida Education Finance Program (FEFP) State Funding Versus Local funding
(Excluding Federal Stabilization Funding)
Chart:
The chart depicts the history of state funding versus local funding.
Notes: This graph portrays the history of total state and local FEFP funding from 2006-07 to 2015-16.  During the years when state revenue collections were impacted by the effect of the recession, local FEFP funds exceeded state FEFP funds.  As a result of the recovery of the Florida economy and the return to normalcy of state revenue collections, state FEFP funds exceeded local funds.
In summary, this module has provided a description of the state budget process.  Included were the state policies for the annual state appropriations and summary bench mark fiscal measures.