Slide 1 – Title Page; School District Workforce Education Funding
Notes: This training module will provide participants with an overview of school district workforce education funding.  District workforce education funding is provided for the support of the following postsecondary career and technical education and adult literacy programs:
•	Career Certificate, formerly known as Postsecondary Adult Vocational Certificates sometimes referred to as PSAV
•	Applied Technology Diploma 
•	Registered Apprenticeship
•	Adult General Education, which include adult basic education, ESOL, and high school diploma programs

Slide 2 – Agenda
Language: 
•	District Workforce Education Funding Statutes
•	Workload Funding Model
•	Performance-based incentive Funding Models
Notes: This module will accomplish the following:
•	Provide an overview of the statutory framework for district workforce education funding, including state funding and tuition and fees policies
•	Describe the workload funding model 
•	Describe the current performance-based incentive models 
The information provided in this training module is current as of the 2016-17 fiscal year.

Slide 3 – District Workforce Education: Total Operating Funds by Source
Chart:
The chart shows the total operating funds by source.
Notes: Typically, the total state and local operating funds for districts are more than $400 million, including locally collected tuition and fees. To put this in perspective FEFP state and local funding totals approximately $20 billion. This chart shows the funding history since 2007-08 which you can see has been remarkably consistent through the great recession and even with drops in enrollment in these programs.  The majority of funding is provided through the state Workforce Development Fund appropriation.
This chart does not reflect any federal grants provided through the Carl D. Perkins Career and Technical Education Act for postsecondary programs or through the Adult Education and Family Literacy Act of the Workforce Innovation and Opportunity Act for adult general education programs.
Slide 4 – District Workforce Education: Total Funds per FTE by Source
Chart:
The chart shoes the total funds per FTE by source.
Notes: This chart shows the funds per FTE for the past several years by the source of funds.  The 2016-17 estimated state funds per FTE are $5,284 and estimated total funds per FTE are $5,956. Although State and local funding has decreased over the last 4 years, the net increase funding in per FTE since 2007-08 is approximately double what it would be based on headline CPI inflation.   

Slide 5 – Statutory Framework for District Workforce Funding
Language: 
•	s. 1011.80, Funds for operation of workforce education programs
•	s. 1009.22, Workforce education postsecondary student fees
•	s. 1009.25, Fee exemptions
•	s. 1009.26, Fee Waivers
•	Annual General Appropriations Act
Notes: The funding framework for district workforce education is contained in the following statutes:
•	Section 1011.80 is the primary funding statute for district workforce education programs.  
•	Section 1009.22 is the tuition and fees statute for workforce education programs.
•	Section 1009.25 contains statutory fee exemptions for students in these programs.
•	Section 1009.26 contains some statutory fee waivers for these programs.
And finally, the annual General Appropriations Act includes funding allocations and policy for the funding of these programs.
I will be highlighting some of the important parts of these statutes during this module.

Slide 6 – District Workforce Education Funding Sources
Language:
•	State Workforce Development Funds
•	2015-16 Funds: $361,626,243*
•	2016-17 Funds:  $362,626,243*
•	State Performance-Based Incentive Funds
•	2015-16: $4,500,000
•	2016-17: $4,500,000
•	For industry certification attainment
•	Local Tuition and Fees (Estimated)
•	Certificate Programs:  $40,731,131	
•	Adult General Education: $5,962,762
*Excludes funds for special projects and non-recurring items
Notes: The operation of district workforce education programs are funded through three primary sources:
•	A State appropriation of Workforce Development Funds
•	A State appropriation of Performance-based incentive funds
•	Locally collected tuition and fees
Workforce Development Funds are allocated by district in the General Appropriations Act annually.  A district’s annual allocation of these funds is dependent upon a variety of factors including the total allocations provided for education funding, specific policies used by legislature for a particular year, and recent history of enrollment in workforce education programs.
Performance-based incentive funds earned through the attainment of specific industry certifications provide a relatively small amount of operating funds based upon performance factors specified in Florida Statutes and the General Appropriations Act each year. 
Local funding consists of tuition and fees charged to students for workforce education.   These charges are specifically authorized by Statute and must be used to support workforce education programs.  
Districts may also receive federal grants to supplement funding for certain programs.  We will not be covering federal grants.
We will begin our more detailed look at the requirements and calculations of funding sources with tuition and fees.

Slide 7 – Tuition and Fees Requirements in s. 1009.22 for State Funded Programs
Language: 
•	All students shall be charged fees except students who are exempt from fees or students whose fees are waived.
•	Standard Tuition Rates, 2016-17
o	Career Certificate/Applied Technology Diploma Tuition
•	Tuition: $2.33 per clock hour
•	Out of State Fee for Non-Residents: $6.99 per clock hour
•	Residency for tuition purposes must be determined by s. 1009.21
•	Adult General Education Block Tuition
o	$45 per half year or $30 per term
•	Districts may vary these rates by plus or minus 5 percent
Notes: Florida Statutes generally requires that fees, including tuition be charged to all students.  There are statutory exemptions for qualifying students and Districts are granted limited authority to waive fees.
For career certificate and applied technology diploma program, the law establishes a standard rate of tuition per clock hour.  The 2016-17 standard tuition rate is $2.33 per clock hour.  Students who are classified as non-residents for tuition purposes under section 1009.21 must also be assessed the out of state fee in addition to the tuition rate.  The 2016-17 standard out-of-state fee is $6.99 per clock hour.
For adult general education, the law establishes a block tuition for these programs.  Tuition is not based upon the number of institutional hours or number of programs in which a student is enrolled.  The tuition is a flat rate and is assessed either by the half-year or the term.  The 2016-17 standard rates are $45 per half year or $30 per term.
Districts have the authority to adopt tuition rates 5 percent above or below the standard rates established by law.

Slide 8 – Discretionary Fees in s. 1009.22
Language: 
•	Financial Aid Fee: up to 10 percent of tuition
•	Capital Improvement Fee: up to 5 percent of tuition
•	Technology Fee: up to 5 percent of tuition
•	User Fees and Fines
o	List of user fees and fines are provided in the statute
o	Fee charged may not exceed the cost of the services provided and may only be charged to persons receiving the service. 
•	District school boards are not authorized to charge students enrolled in state-funded workforce development programs any fee that is not specifically authorized by statute
Notes: In addition to the required tuition, districts have the authority to assess discretionary fees for certain purposes to students enrolled in career certificate and applied technology diploma programs.  
There are the discretionary fees that can be assessed based upon clock hours. 
The first is a Financial Aid Fee of up to 10 percent of tuition and out of state fees.  See section 1009.22, paragraph 5, for details about this discretionary fee.
The second is a Capital Improvement fee of up to 5 percent of tuition and out of state fees.  See section 1009.22, paragraph 6, for details about this discretionary fee.
The third is a Technology fee of up to 5 percent of tuition and out of state fees. See section 1009.22, paragraph 7, for details about this discretionary fee.
These discretionary fees cannot be assessed for enrollment in adult general education programs. 
In addition to fees based on clock hours, section 1009.22, paragraph 9, authorizes certain user fees and fines like laboratory fees, standardized testing fees, and parking and library fees and fines.  A complete list of the authorized user fees and fines are included in the statute.  These user fees and fines may not exceed the cost of the services provided and may only be charged to those who are receiving the services.
District school boards may not assess student fees that are not specifically authorized by statute to students in state funded workforce education programs.
 
Slide 9 – Tuition and Fees – Exemptions and Waivers
Language:
•	Statutory exemptions from tuition and fees are included in s. 1009.25, F.S., and include the following categories:
o	Dual enrollment students
o	Homeless students
o	Registered apprenticeship
•	Several waivers are included in other statutes.  For example, s. 1009.26 includes the following:
o	Out of state fee waivers for Honorably Discharged Veterans and those receiving educational assistance through Veteran’s Affairs
o	Out of state fee waivers for recent high school graduates Tuition waivers for Purple Heart and other combat medal recipients
Notes: Some students enrolled in workforce education programs may qualify for exemptions and waivers from the payment of tuition and fees. Section 1009.25, Florida Statutes, includes several exemptions from the payment of tuition and fees.  Among the most commonly used exemptions for workforce education programs are career dual enrollment students, homeless students, and students in registered apprenticeship programs.  
In addition to statutory exemptions, several sections of Florida Statutes include tuition waivers.  Section 1009.26, paragraph 8, requires a tuition waiver for recipients of Purple Hearts or any other decoration superior in precedence.

Slide 10 – Discretionary Fee Waivers
Language: 
•	Section 1009.26(1) provides:
o	School districts and Florida College System institutions may waive fees for any fee-nonexempt student. The total value of fee waivers granted by a school district or Florida College System institution may not exceed the amount established annually in the General Appropriations Act. Any student whose fees are waived in excess of the authorized amount may not be reported for state funding purposes. 
•	Current General Appropriations Act proviso:
o	Pursuant to the provisions of section 1009.26(1), Florida Statutes, school districts may grant fee waivers for programs funded through Workforce Development Education appropriations for up to 8 percent of the fee revenues that would otherwise be collected
Notes: Districts have the authority to grant discretionary waivers based upon an amounts established in the General Appropriations Act.  The current appropriations act authorizes districts to grant fee waivers for up to 8 percent of the revenues that would otherwise be collected.  For example, if a Districts’ student enrollments would generate $1 million in tuition and fees, the District could waive up to $80,000.

Slide 11 – Fees Requirements in s. 1009.22 for Non-State Funded Programs
Language:
•	Many districts also offer continuing workforce education programs as defined in section 1004.02, paragraph 12 that are not state-funded programs. 
•	Florida Statutes require that expenditures for non-state funded workforce education programs be fully supported by fees. 
•	Therefore districts should have a locally adopted fee schedule for continuing workforce education that fully fund the costs of these programs.
Notes: Many districts also offer continuing workforce education programs as defined in section 1004.02, paragraph 12.  While these programs are still included in the statutory definition of workforce education, these are not state funded programs.  The fees statute provides that “expenditures for the continuing workforce education programs provided by the school district must be fully supported by fees” and that “enrollments in continuing workforce education courses may not be counted for purposes of funding full-time equivalent enrollment.”  Districts offering these programs should have Board adopted fees for continuing workforce education that fully fund the cost of the programs.

Slide 12 – Tuition and Fees – Technical Assistance
Language:
•	The Division of Career and Adult Education releases a tuition and fees memo every year.  The memos are archived here for reference:
o	http://fldoe.org/academics/career-adult-edu/state-funding-districts/tuition-fees.stml 
Notes: To assist districts with tuition and fees policies, the Division of Career and Adult Education releases a tuition and fees memo each year.  It can be accessed at the web link shown here.

Slide 13 – Career Certificate Tuition and Fees for a Full-time Student (FTE)
Chart:
The chart is organized by estimated tuition and fees of an FTE.
Notes: This chart shows the estimated tuition and discretionary fees associated with a full-time student.  One FTE is based upon 900 instructional hours.  For the past four years, the standard tuition plus discretionary fees is $2,502 per FTE.  Remember the District School Board may adopt tuition rates within a range of 5% above or 5% below standard rates.  The amounts presented on this chart do not include laboratory fees or other user fees that may assessed.
Slide 14 – Expenditure Requirements for Funding Sources for Workforce Education Programs
Language:
•	s. 1011.80(7)(a)
o	A school district or Florida College System institution that receives workforce education funds must use the money to benefit the workforce education programs it provides. 
o	The money may be used for equipment upgrades, program expansions, or any other use that would result in workforce education program improvement. 
o	The district school board or Florida College System institution board of trustees may not withhold any portion of the performance funding for indirect costs.
Notes: This slide refers to the expenditure requirements for state funded workforce education programs.  The first bullet is excerpted from section 1011.80, paragraph (7)(a) and the reference to workforce funds includes both state and local funds. The statutory requirement is that a school district must use workforce education funds to benefit the workforce education programs that it provides.  The statute further specifies that this includes equipment upgrades, program expansions, or any other use that would result in program improvement.
In addition, the statute provides that indirect costs may not be charged against or serve to reduce performance funding.

Slide 15 – Expenditure Requirements for Funding Sources for Workforce Education Programs
Language: 
•	s. 1011.80(7)(b)
o	State funds provided for the operation of postsecondary workforce programs may not be expended for the education of state or federal inmates.
Notes: Section 1011.80, paragraph (7)(b), the law requires that state funds may not be expended for the education of state or federal inmates. There are separate funding sources for these programs.

Slide 16 – Expenditure Requirements for Funding Sources for Workforce Education Programs
Language:
•	General Appropriations Act (eff. 2016) proviso language in the Workforce Development Fund appropriation:
o	Funds provided in Specific Appropriations and funds collected from standard tuition and out-of-state fees shall be used to support school district workforce education programs as defined in section 1004.02(25), Florida Statutes, and shall not be used to support K-12 programs or district K-12 administrative indirect costs.
o	The Auditor General shall verify compliance with this requirement during scheduled audits of these institutions.
Notes: In addition to Florida Statutes, the proviso language in the General Appropriations Act that applies to budgets beginning July 1, 2016 includes specific requirements for workforce development funds.
The proviso states that the funds are provided for workforce education programs as defined in section 1004.02.  In this definitions section, ) “Workforce education” means adult general education or career education and may consist of a continuing workforce education course or a program of study leading to an occupational completion point, a career certificate, an applied technology diploma, or a career degree. 
The Department of Education has approved programs and courses that comprise workforce education programs.
Proviso language states that state funds from this appropriation and funds collected from tuition and out of state fees must not be used to support K-12 programs or district K-12 administrative indirect costs.  
The Auditor General is tasked with ensuring compliance with expenditure requirements during their scheduled district audits.

Slide 17 – Workforce Development Fund Allocations by District
Language:
•	Districts are provided allocations in this category annually for the operation of any workforce education program
•	General Appropriations Act (eff 2016) - None of the funds are categorical to any particular workforce program and can be expended on any eligible workforce education program
Notes: In the annual General Appropriation Act, Workforce Development Funds provide most of the state resources to support district workforce education programs.  
The General Appropriations Act applicable to 2016 provides a lump sum line item appropriation to each District with a workforce education program that may be spent on any district workforce education programs.  They are not categorical to a specific workforce education program.

Slide 18 – Workforce Development Fund Allocation Process
Language:
•	Funding is NOT like the K-12 funding model which is based on projected FTE with expenditure requirements for the program that generated the funds
•	Current Policy for District Allocations
o	BASE FUNDING +  ADJUSTMENT
•	Allocation process begins with the base appropriation from the prior year and the Legislature makes adjustments (increase, decrease, level) based on policies being used for the allocation for that year
•	In recent history, the funding model has been used periodically to make adjustments to the base funding provided to institutions, but its use has not been consistent
Notes: State funding of Workforce Education does not operate like the Florida Education Finance Program, which is based upon projected FTE for the fiscal year.
Each district’s Workforce Development Fund allocation is funded with recurring revenue sources.  The current policy for annually determining a district’s allocation provides base funding plus adjustments to based funding.  This process begins with the appropriation from the previous year.  The Workforce Education Steering Committee has developed a funding model which is updated annually and provided to the legislative appropriation committees.  In recent years the workload funding model has been considered in making decisions about base funding and increasing and decreasing allocation to districts of workforce development funds.   However, there is no requirement for the legislature to establish annual appropriations based on the model and the model has not been used consistently

Slide 19 – Workload Funding Model Elements
Chart:	
The chart is organized in a building block style.
* FTE in the model is usually a three-year average of actual instructional activity (no estimates or projections)
Notes: The building blocks for the workload model are display here and include:
•	The prior year appropriation,
•	Instructional Hours in workforce education programs,
•	Program costs factors applied to each type of program, and
•	Estimated tuition revenue
•	In the 2016-17 workload model, additional supplemental factors were added to the workload model for the operation of a GED testing centers and for services provided to students with documented disabilities.

Slide 20 – Overview of Workload Funding Model
Chart:
The chart demonstrates the formula to calculate state funding based on FTE workload.
Notes: Each year the workload funding model calculation derives a recommended state funding level based upon the following factors:
•	The three year average of weighted FTE
•	A standard cost per Unit, which the amount usually closely approximates the FEFP base student allocation
•	The district cost differential
•	And the locally collect tuition revenue
An estimate of total funding need is calculated based on the three year average of weighted FTE multiplied by a standard cost per unit and the district cost differential.  The state’s portion of the funding needs is to calculate by subtracting tuition revenue from the total funding need.  For 2016-17, the cost per unit used for the model was $4,160.17.

Slide 21 – Weighted FTE for Apprenticeship Programs
Language: 
•	Uses three-year average of actual FTE
o	Apprenticeship Classroom Hours
o	On-the-Job Training Hours (maximum of 2,000 per student per year)
•	Cost factors are applied to each program
o	Different weights by program
o	OJT hours are weighted separately
Notes: Weighted FTE is calculated as the average of the most recent three years of actual enrollment.  Unlike the FEFP, projected and estimated FTE are not used for the calculation.
FTE is determined by converting instructional hours to FTE based upon a ratio of 900 instructional hours per FTE.  
There are limits to the instructional hours that are included in the workload model:
•	For apprenticeship, a maximum of 2,000 on-the-job training (OJT) hours is fundable (based on the program requirements).  If a district reports more than 2,000 OJT hours for a student, a cap is applied to reduce their fundable hours to 2,000.
•	For adult general education programs, a maximum of 1300 hours may be fundable per reporting year for adult education students.  In addition, records submitted with less than 10 instructional hours are excluded. 
•	For the adult high school co-enrollment program, a maximum of two core curricular courses per student is fundable.  If more than two core curricular courses were reported, the two courses with the most instructional hours are used. The list of core curricular courses is identified each year by the adult general education program staff. [ibid]
Each career certificate and applied technology diploma program has a cost factor assigned by a committee of district CTE administrators.  These cost factors assign each program a low, medium, or high cost weight.  On the job training hours have a separate standard weight.

Slide 22 – Cost Factors for Weighted FTE
Chart:
The chart shows the programs and cost factors for weighted FTE.
Notes: This table shows the weights applied to the FTE.  The cost factors are recommended by DOE with the consent of the Legislature.  All adult general education programs have the same weight of 1.5.  Career certificate, applied technology diploma, and apprenticeship programs are all assigned a low, medium, or high cost weight of 1.5, 1.75, 2.0, or 2.4.  All OJT hours have a weight of 0.2.

Slide 23 – Performance-Based Incentive Funds
Language: 
•	District workforce programs have received a portion of their funding based on various performance metrics since the late 1990s
•	A separate performance funding category has been appropriated since 2005-06
o	Various models have been used to allocate these funds
Notes: Since 2005-06 the General Appropriations Act has included a separate line item for District Workforce Education Performance-Based Incentives.  Over this period of time, various methodologies have been used to allocate these funds to districts.

Slide 24 – History of Performance-Based Incentive Funds for District Workforce Education
Chart:
The chart shows the decrease in percent of operating funds in performance incentives.
Notes: This chart shows the history of funding since 2006-07.  In most years, the appropriation has been about $5 million.

Slide 25 – District Performance Funding Methodologies
Language:
•	s. 1011.80(6)(b), F.S.
o	$1,000 per eligible certification is provided for items on the Postsecondary Industry Certification Funding List
o	Funding provided for occupational areas identified in the General Appropriations Act, contingent upon funding in the GAA
o	If funds are insufficient to fully fund the calculated total award, the funds will be prorated.
•	Dual enrollment students are included in the calculation
Notes: The current performance funding methodology is provided in section 1011.80, paragraph (6)(b) of Florida Statutes.  The law provides for $1,000 per eligible industry certification for items on the CAPE Postsecondary Industry Certification Funding List.  Each year in the General Appropriations Act, the occupational areas that are identified for performance funding are specified.
Dual enrollment students may generate performance funding.
If the appropriation is not sufficient to fund $1,000 per certification, the funds must be prorated, however as of May 2016, there has never been a proration.

Slide 26 – District Performance Funding, 2016-17
Language:
•	$4.5 million was provided for 2016-17 for students who earn industry certifications during the 2016-17 fiscal year
o	Funds will be allocated at the end of the 2016-17 fiscal year based on industry certifications reported by the districts through May 2017
•	Current proviso language allows any unallocated funds to the disbursed by the Department based upon adult general education performances
Notes: In 2016-17, $4.5 million was appropriated for students who earned industry certifications in the 2016-17 year.  Because the funds are based upon current year activity, the disbursement of these funds cannot occur until the end of the fiscal year.  For example, the 2014-15 allocation, about $3.3 million in performance-based incentive funds were disbursed to districts in the May 26, 2015 payment based upon data reported by the districts through early May.
If the appropriation exceeds the amount that can be disbursed based upon industry certification attainment, current language allows the Department of Education to disburse remaining funds based upon performances in adult general education programs.  In June 2015, about $1.7 million was allocated to districts based upon these performances.

Slide 27 – Current* Occupational Areas Eligible for Performance-Based Incentives for Industry Certifications
Language: 
Health science to include:
•	Surgical technology
•	Orthopedic technology
•	Dental assisting technology
•	Practical nursing
•	Certified nursing assistant
•	Medical coder/biller
•	Medical assisting
•	Emergency medical technician and paramedic
•	Clinical lab technician
•	EKG technician
•	Pharmacy technician
•	Clinical hemodialysis technician
*2016-17
Notes: The next two tables show the current occupational areas that are eligible for performance-based incentive funds in 2016-17.  This shows the health science related occupations.

Slide 28 – Current* Occupational Areas Eligible for Performance-Based Incentives for Industry Certifications (cont.)
Language:
Other Areas:
•	Automotive service technology
•	Auto collision repair and refinishing
•	Medium/heavy duty truck technician
•	Cyber security
•	Cloud virtualization
•	Network support services
•	Computer programming
•	Computer-aided drafting
•	Advanced manufacturing
•	Electrician
•	Welding
•	FAA airframe mechanics and power plant mechanics
•	Heating, ventilation and air conditioning technician. 
•	Plumbing
•	Public Safety
*2016-17
Notes: This chart shows the additional areas that are eligible.  For 2016-17, the broad category public safety was added which includes law enforcement officer, correctional officer, and public safety telecommunicator certifications.

Slide 29 – CAPE Postsecondary Industry Certification Funding List
Language: 
•	See the following web site for information on the postsecondary list:
o	http://fldoe.org/academics/career-adult-edu/cape-postsecondary 
•	This list includes both college and district eligible funding certifications
Notes: The industry certifications that are eligible for district performance funding are adopted annually by the State Board of Education as offset forth in rule 6A-6.0574, Florida Administrative Code.  
The web link shown here provides information on this postsecondary list.

Slide 30 – Web Resources/Contacts on Appropriations
Language:
•	State Appropriations Site
o	http://fldoe.org/academics/career-adult-edu/state-funding-districts
•	Contacts
o	Tara Goodman
•	850-245-9001 or tara.goodman@fldoe.org
o	Tara McLarnon
•	850-245-9005 or tara.mclarnon@fldoe.org
Notes: The Division of Career and Adult Education staff provide technical assistance to school districts on issues related to district workforce education funding.
Contact information and web links for additional documents are provided here.