SUPERINTENDENT CARVALHO PREVIEWS SCHOOL DISTRICT BUDGET

MIAMI – Miami-Dade Superintendent Alberto M. Carvalho offered School Board members a preview of the 2009-2010 school year budget today, with a plan that will not require the Board to levy increased taxes.  A significant state-mandated increase in local effort by the state, however, is expected to hike county residents’ tax bills.

The values-driven budget plan reflects the school district’s guiding principles: improving student achievement, protecting the classroom, protecting the workforce and maintaining the fiscal viability of the District.

“Our budget must reflect our values,” said Carvalho.  “This budget is aligned to our number one goal: student achievement.”

This year’s budget comes with an unprecedented level of transparency to all stakeholders in the school district.  The budget was developed after more than eight months of input and involvement by local stakeholders including top CEOs, chambers of commerce, and school administrators.

All technical deficiencies in last year’s budget have been corrected through savings achieved by means of a budget resolution approved by the School Board in November 2008.  The budget offers a realistic salary lapse based on accurately projected salary expenditures and current attrition data. 

The budget boosts the school district’s reserves as well, which is important for maintaining the District’s favorable bond ratings.  The budget will include two breakthrough policy recommendations: a tax roll protection fund and an employee protection fund, in anticipation of State holdbacks and a generally weak economic forecast.

The smallest expenditure reductions in this year’s budget were those directly related to instruction.  Additionally, there will be no reduction in force in General Fund positions, although central office expenditures will continue to be reduced.

The balanced budget comes in the midst of the worst economic conditions most Americans have experienced in their lifetimes and overcomes deficits incurred by the previous administration, as well as two years of drastic cuts from the State.  School districts across the country are facing equally devastating circumstances, and many have been forced to lay off teachers and other staff going into the new school year.

Through a plan to reduce the number of work days in the 2008-2009 school year, Carvalho was able to meet the State’s mid-year reductions.  Carvalho’s plan won enthusiastic support from all of the labor organizations that work with the school district, as well as from other employees not represented by organized labor.

The budget puts Miami-Dade County Public Schools in its strongest financial position in more than a decade.

Across South Florida, a decline in real estate values combined with high foreclosure rates and increased unemployment continues to erode the tax base. The Florida Legislature shifted .25 mills from school district operating budgets to their capital budgets.  As a result of the revenue losses, an increasing portion of the District’s available funding for capital is pledged to repay debt.  Consequently, the District’s ability to fund future projects is severely hampered.

The District was handed an unfunded mandate from the Florida Department of Education to be in compliance with the Class Size Amendment by 2011.  The District faced a deficit of approximately 70,000 student stations in 2004-2005, and due to a lack of state funding for new construction, local revenues were concentrated on new capacity projects at the expense of existing facilities.  Substantial debt was incurred to finance construction based on anticipated continued tax roll growth.  The timing of school construction coincided with a local building boom, thereby increasing costs.

Looking to the future, Carvalho warned that if no new revenue options materialize, the 2011-2012 financial year will require massive reductions in force with a deterioration of Board-owned facilities. Student performance will be adversely impacted, and restoring student achievement to current levels could take decades.

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09-JJS/002/TR

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