The preliminary budget for fiscal year 2022 for the School District of Lee County includes some increases in areas such as health insurance and teacher salaries.

A presentation was provided to the school board this week, as the tentative budget hearing is scheduled for July 27, followed by the final hearing budget on Sept. 8.

“The budget is constantly changing. None of the numbers are set in stone,” Budget Director Kelly Letcher told the elected board Monday.

The unweighted FTE (full-time equivalent) increased and is now 2,632 students higher, which Letcher said she was not sure they were going to reach, but the Department of Education believes they will.

The district reports student FTE projections to the state, one of which is unweighted and the other weighted. At a February meeting it was stated that Lee County projections were down, as were projections in most counties throughout the state of Florida. Also during that February meeting, Letcher said they had projected 96,061 students but, based on two surveys, they were at around 93,600 students.

“This year we had projected 96,061 students. Based on survey two and three it looks like we’re around 93,600 (students),” she said then. “We are down about 2,400 students total this year. That of course has an impact on next year’s projections.”

The Department of Education recommended Model 8 has a projection of 95,114 students.

Letcher said the fiscal year 2022 preliminary budget includes an increase in base student allocation, or BSA, of $53.42, which now stands at $4,372.91.

The budget also includes a teacher salary increase to $47,500. Letcher said they received additional allocation for this, but was not sure how they should be handling it at this time. She said the Department of Education is probably going to be expecting a plan again next year, which has her thinking they have to do something before they receive the allocation.

The preliminary budget also includes a growth in Family Empowerment Scholarships, which Letcher expects to be an impact on the budget.

Another focus of the discussion included an increase in the district’s contribution for health insurance of $744 per employee, which is a $7 million increase to the budget.

Also, there was an increase in the retirement plan from 10 percent to 10.82 percent, resulting in $5.3 million based on the district’s current employees.

The district’s estimated general fund is $982,664,748, which is a proposed $19,748,640 increase over fiscal year 2021. The increase includes FTE growth and retirement and health insurance increases.

The fund balance is up $17 million, which Letcher said is artificially high.

“We had been bringing that down, but all the vacancies that occurred during COVID, the unfilled positions and not getting subs in the classrooms. We are working on a plan to be able to bring that fund balance down without reoccurring expenses,” she said of looking at different options.

Emphasis includes bringing the resources to the classroom, targeting English Learners, lowest performing students and recapturing learning losses.

The estimated capital budget is $701,952,430 and includes an estimated $181,900,000 in COPs; capital millage tax revenue of $148,375,130, sales tax revenue of $87,272,771 and impact fee revenue of $17,312,000.

Food services was also highlighted during the presentation. There is an estimated $9,210,961 decrease over fiscal year 2021 due to the number of students who were fed throughout the last school year.

The internal service estimated fund is $155,547,953, a $10 million increase over fiscal year 2021 due to the increase in health insurance and the estimated increase in the fund balance.

The tax roll for the district is currently at $96.5 billion. The preliminary taxable valuation roll from the property appraiser is $103 billion, a 6.68 percent increase over the current year due to increased property valuations.

“The required local effort has no additional money as the tax piece goes up and the state piece goes down,” Letcher said.

The discretionary millage is expected to result in about $73 million in revenue. The capital outlay millage is expected to produce $3 million more, according to Letcher.

The presentation also included information about ESSER (the Elementary and Secondary School Emergency Relief Fund), which still has a lot of unanswered questions.

“I believe it will take a couple of years to gain the learning loss our kids will have,” Letcher said.

ESSER I – CARES Act had $22,820,284 awarded through Sept. 30, 2022. The initiatives of the district included expanded learning opportunities, safe reopening of schools, social emotional learning supports and support for ELL, ESE and low 25 percent of students.

ESSER II – CRRSA Act, $84,144,214, Letcher believes will be dollars they will have until the end of 2023 with an overlap into 2024. She said the proposed spending requirements include 34 percent for non-enrollment assistance; 20 percent on academic assistance and 5 percent on technology assistance.

“We are trying to figure out the best way to help students with learning loss and needed resources,” Letcher said.

There is also ESSER III – the American Rescue Plan Act, which Letcher said they are looking at about $174 million.

“This one requires consultation with stakeholders and stakeholders are staff and teachers. Twenty percent is required for learning loss initiatives,” Letcher said.

She said the board will probably not see the ESSER II and ESSER III dollars in the tentative budget.

“You will not see it in the tentative budget unless we are awarded the dollars,” Letcher said.