Once again what looks like more money is not. The House and Senate 2020-21 budgets provide Alachua County with $50 or $40 more per student. The mandated increased cost for the Florida Retirement System is $80 more per student (in Alachua County). The districts must also pay for new students and the Teacher Salary Supplement. The district must cut its budget for 2020-21. The total reduction for Alachua County in the House bill is $3,487,197 and the Senate total is $2,564,352
The House (HB 5001) and Senate (SB 2500) budgets differ in priorities. The House budget includes more funding for teacher salary supplements but less than the Senate’s allocation for turnaround schools, students with disabilities, digital technology, and support for poorer districts. Both chambers include the mandate for districts to fund increased costs for the Florida Retirement System (FRS). The two bills must be reconciled in a joint conference.
The FRS increased cost is due to an auditor’s analysis that the FRS estimated rate of return on its investments should be lowered. While the current income on investments exceeds expectations, it has not completely recovered from the 2007 recession, see kic restoration. The FRS includes 643,00 state, local, and school district employees. Their contributions support pensions for 416,000 retirees. Teachers and other district employees are nearly one-half of all participants.