Florida
Education News
April
2009
Copyright © 2009 Queue, Inc.
IN
THIS ISSUE:
Osceola County School
District
Hillsborough County
School District
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Students
at charter schools graduate and attend college at significantly higher rates
than students at traditional public schools, according to a RAND Corp. study
led by a Michigan State University scholar.
The
study, which offers mixed overall results for charter school advocates, comes amid
a national debate over President ObamaÕs endorsement of charter schools, which
are experimental public schools that operate independently of the local school
board. Obama recently said he would oppose limits on the number of charter
schools.
Researchers
found that charter students are 7 percent to 15 percent more likely to graduate
from high school and attend college than students at traditional public
schools.
Other
findings from the study, which looked at eight U.S. locations:
á There is little evidence
that charter schools are producing, on average, test score gains that differ
substantially from those of traditional public schools. Zimmer said much of the
previous research has shown similar results.
á Charter schools do not
generally draw the top students away from traditional public schools. In fact,
Zimmer said students transferring to charter schools generally have
below-average test scores.
á Charter schools do not
appear to substantially help or harm student achievement in nearby traditional
public schools.
The study examined charter schools in Chicago,
Denver, Milwaukee, Philadelphia, San Diego, and the states of Florida, Ohio and
Texas.
Complete report:
http://www.rand.org/pubs/monographs/2009/RAND_MG869.pdf
Located
on the southwestern coast of Florida, Sarasota County's economy expanded
rapidly in the first part of the decade, but recent data underscore weakened
economic conditions. The December 2008 unemployment rate grew to a high 8.1%
from 5.1% the prior year, while employment figures contracted to 2004 levels.
Area housing data show a slowing number of starts and a sharp decline in
prices; the district's fiscal 2009 total assessed value (TAV) declined by 10.9%
and officials are preparing for an additional decline of up to 20% in fiscal
2010. Fitch notes that the district's revenue base is weighted heavily toward
local sources. While this softens the impact of recent state funding
reductions, it makes the district's voted operating and capital outlay levies
vulnerable to the housing market correction; the district's one-mill voted
operating levy was renewed in March 2006 for a four year period extending
through fiscal 2010.
Sound
financial operations are buoyed by management's demonstrated ability to rectify
recent budgetary shortfalls and the district's strong reserve levels, which
equaled 13.5% ($55.6 million) of fiscal 2008 spending. Officials prudently
reduced the fiscal 2009 general fund budget by $32 million due to revenue
pressures associated with tax base declines and cuts to state aid. This has
reduced the expected operating deficit to $8.6 million and should keep fund
balances above management's policy level, which requires an unreserved general
fund balance equal to 7.5%-10% of appropriations and transfers out. Looking
forward to the fiscal 2010 budget, officials have identified $41 million of
cuts to offset an expected $40 million decline in general fund revenues,
stemming mainly from the housing market correction. Fitch will continue to
evaluate how the district manages its operating reserves and capital projects
in the context of tax base declines and state aid cuts.
Debt
ratios are low, with overall debt equaling $1,455 per capita, or 0.7% of TAV.
Excluding overlapping debt of the county and underlying municipalities, debt
ratios fall to $430 per capita, or 0.2% of TAV. The district's fiscal years
2009-2013 capital improvement plan (CIP) totals $1.2 billion, including
approximately $821 million of capital appropriations. COP proceeds provide just
20% of CIP funding sources, which, coupled with a rapid amortization rate,
should keep debt levels manageable. While the district's capital outlay
receipts have been affected by the Florida's Legislature's reduction of the
maximum allowable capital outlay millage, the passage of Amendment One, and the
ongoing housing market correction, district officials note some cost savings
from current capital projects and flexibility in delaying future projects.
Projections of declining enrollment through fiscal 2011 complement this trend.
The district does not plan to pre-fund its modest $23 million other
post-employment benefits liability through the use of a trust.
Osceola
County, which is coterminous with the school district, is located roughly 14
miles south of Orlando and adjacent to Disney World, leading to the county's
historic concentration in tourism. The Walt Disney Co. (rated 'A' with a Stable
Outlook by Fitch) employs 61,500 employees in Orange and Osceola counties. The
county's economy and population experienced substantial growth in previous
years as the expanding Orlando metropolitan area extended into the county.
Population has increased almost 50% since 2000 as the inventory of affordable,
developable land is reportedly higher here than in neighboring Seminole and
Orange Counties. Unemployment has increased with the recent economic downturn
to 8.7% in December 2008 from 4.9% a year prior.
Although district revenues are vulnerable to state funding fluctuations, the district has maintained stable operations. Despite $18.6 million in state aid reductions, including $12.6 million in mid-year cuts, fiscal 2008 ended roughly balanced with a minimal $0.3 million drawdown. Fiscal 2009 has already resulted in nearly $20 million in reductions from state revenue. The district has implemented an effective expenditure reduction plan to offset the majority of the cuts and plans to drawdown a moderate $4.5 million to avoid severe service decreases. Unreserved fund balance levels are expected to remain a healthy 13%. Going forward, the district plans to make service reductions as necessary to offset state aid reductions and maintain current fund balance levels.
Debt
levels are moderate, especially given recent rapid enrollment growth. Overall debt
per capita equals $2,631 per capita and 2.5% of taxable assessed value. The
district's five-year capital improvement plan (CIP) totals $475.8 million,
excluding debt service, and is fully funded. Renovating new schools, capacity
projects, and reoccurring projects each account for roughly a third of the
plan. The district plans to issue $50 million in additional COPS over the next
five years. Currently, the district uses a low 0.53 mills for COPS debt service
payments.
Located
midway down the western coast of Florida, Hillsborough County (implied 'AA+'
Fitch GO rating), is coterminous with the district and serves as the economic
center for Florida's Gulf Coast. While the long-term profile of the county
economy is strong and diverse, the current downturn in the economy has had a
magnified effect on the area. Unemployment in the county has increased to 7.8%
in December 2008 from 4.5% the previous year, although it remains comparable to
state and slightly above national averages. Rapid population growth has
historically driven corresponding enrollment growth rates in the district,
although population growth has begun to level off, and enrollment has declined
slightly for the current school year. The district projects roughly flat
enrollment over the next few years.
The
district's financial position is strong as evidenced by a continued trend of
sizeable operating surpluses and robust reserve levels. Despite $45.6 million
in state aid reductions, fiscal 2008 ended with $47.5 million operating
surplus. The district's unreserved fund balance increased to a robust 23.3%,
which is especially high for a Florida school district. In addition to funding
withdrawn for enrollment corrections, the state has cut $26.2 million in intergovernmental
revenue to the district so far in fiscal 2009. The district has continued its
proactive approach to offset these revenue declines by reducing district
division budgets and expects to end the year with no drawdown of reserves.
Overall
debt levels are moderately low at $1,853 per capita and 2.43% of taxable
assessed value. Future capital needs have decreased dramatically over the past
few years as enrollment growth has slowed and the construction of multiple new
schools has been completed. Due to the previous surge in construction, the
percentage of students in portables has decreased to 3% currently from 10.8% in
fiscal 2006. Current capital improvement project (CIP) funds for fiscal 2009-13
total $176.1 million and are roughly 14% of the $1.3 billion CIP funds for
fiscal 2006-10. No additional debt is currently planned.