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Florida Retirement System (FRS) rates for regular class will increase from 8.47% to 10.00% or approximately 1.53% for 2020-21. Based on current salaries the projected increase cost to the district $1.4M. In 2011-12, FRS rates were amended, and employees were required to contribution 3% of their salary to their retirement account. This amendment reduced the district FRS rates from 10.77% to 4.91%. However, since 2011-12, the district FRS rate has increased every year and cost the district approximately $3.9M. If we only compare the 2020-2021 House Budget 5001 to the 2019-2020 Third FEFP Calculation, the net funding increase to the district is $22K before the impact of FRS. Once we consider the FRS impact for 2020-21 of $1.4M and the FRS increases from prior years of 2012-13 to 2019-20 of $3.9M, the net increase becomes a net decrease funding of $5.3M. See attached summary table. Net funding increase of $4,572,420, less the following additional funding requirements: 1. Teacher Salary Increase Allocation 2020-21: $3,001,107 additional mandatory teacher allocation that will become permanently included in future salary schedules. 2. Teacher Salary Allocation 2013-2014: $3,164,057 was provided for a mandatory teacher salary allocation that was subsequently permanently included in the district salary account and was rolled into base funding. 3. Best and Brightest Allocation: $1,764,649. The bonus was discontinued, and previously appropriated revenue was used to offset the cost of the new Teacher Salary Allocation. 4. Mental Health Services: $149,317. The funds accompany increased requirements for schools to provide mental health services that will exceed the appropriation. 5. Total Requirements of $4,549,796. 6. Net funding impact to the district, $22,624, before impact of FRS. 7. Less FRS increases from 2012-13 to 2019-20: $3.9M plus proposed increase for 2020-21 in the amount of $1,400,000 for a total of $5,300,000. 8. Net to district after new requirement and FRS impact: negative ($5,277,376). In addition to the changes in FEFP funding changes detailed above, the district also generates capital funding. In FY 2007-2008, the district generated approximately $36M in local discretionary capital improvement funds from the 2.0 mills authorized by the Legislature. In FY 2020-2021 it is projected that the district will be able to generate approximately $31M in local discretionary capital improvement revenue from the 1.5 mill levy authorized by the Legislature, a decrease of approximately $5M compared to the original 2.0 mills levy in 2007-2008. Over the past 14 years the reduction in the local discretionary capital millage from the high of 2.0 mills to the current level of 1.50 mills has resulted in a loss capital revenue of approximately $100M to the district. For 2020-21 the district will receive a Hold Harmless Funding Compression Allocation in the amount of $1M for the decrease in the District Cost Differential (DCD). For 2020-21 the district's 83