FELE Finance — Financial and Resource Management
FELE FINANCE FINANCIAL AND RESOURCE MANAGEMENT:
COMPLETE EXAM QUESTIONS AND VERIFIED SOLUTIONS |
2026/2027
FELE FINANCE
Financial and Resource Management
1. What is the primary purpose of the Florida Education Finance
Program (FEFP)?
A. To allocate federal Title I funds only
B. To ensure equitable funding for public education across Florida's
diverse school districts
C. To replace local property tax revenue entirely
D. To fund exclusively charter school construction projects
ANSWER : B. To ensure equitable funding for public education
across Florida's diverse school districts, the FEFP was created to
equalise educational opportunity by adjusting for local wealth and program
cost differences.
2. In the FEFP formula, what does the term "Base Student Allocation"
refer to?
A. The total per-pupil expenditure after all adjustments
B. The amount allocated solely for capital outlay
C. The dollar amount appropriated per full-time equivalent (FTE) student
before program cost factors are applied
D. The minimum salary guaranteed to instructional staff
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, FELE Finance — Financial and Resource Management
ANSWER : C. The dollar amount appropriated per full-time
equivalent (FTE) student before program cost factors are applied
The Base Student Allocation is the foundational per-FTE dollar figure set
annually by the Legislature.
3. Which factor in the FEFP formula adjusts funding based on the
relative cost of different educational programs, such as ESE versus
basic education?
A. Declining Enrollment Supplement
B. Sparsity Supplement
C. Program cost factors
D. District Cost Differential
ANSWER : C. Program cost factors Program cost factors weight funding
to reflect that some programs cost more to deliver than others.
4. The District Cost Differential (DCD) in the FEFP formula primarily
accounts for what?
A. The age of school facilities in a district
B. Regional variation in the cost of living and labor across Florida districts
C. Variation in the number of charter schools per district
D. Differences in student achievement scores between districts
ANSWER : B. Regional variation in the cost of living and labor across
Florida districts The DCD adjusts funding so districts in higher-cost areas
receive proportionally more state funding.
5. Full-time equivalent (FTE) student counts are used in the FEFP
primarily to determine what?
A. Graduation rate calculations
B. School accountability grades
C. Teacher certification renewal deadlines
D. The amount of state funding a district receives based on enrollment
and program participation
ANSWER : D. The amount of state funding a district receives based
on enrollment and program participation FTE counts, taken during
designated survey periods, directly drive the per-student funding
calculation.
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, FELE Finance — Financial and Resource Management
6. Which of the following best describes categorical funding within
Florida's school finance system?
A. Funds raised exclusively through local millage
B. Unrestricted funds a district may spend at its own discretion
C. Federal funds distributed based on poverty rate only
D. State funds appropriated for a specific, restricted purpose, such as class
size reduction
ANSWER : D. State funds appropriated for a specific, restricted
purpose, such as class size reduction Categorical funds must be spent
on the designated program and are tracked separately from general
operating funds.
7. A school district experiencing declining enrollment may qualify for
which type of FEFP adjustment?
A. Instructional Materials Allocation
B. Declining Enrollment Supplement
C. Sparsity Supplement
D. Safe Schools Allocation
ANSWER : B. Declining Enrollment Supplement This supplement helps
cushion the financial impact of sudden enrollment drops on a district's
budget.
8. Under Florida statute, which entity is primarily responsible for
establishing local school district millage rates for operating purposes,
within limits set by law?
A. The local property appraiser
B. The Florida Department of Education
C. The State Board of Education
D. The district school board
ANSWER : D. The district school board School boards levy millage
within statutory caps, subject to truth-in-millage requirements.
9. What does "Required Local Effort" (RLE) refer to in Florida school
finance?
A. The minimum instructional expenditure ratio
B. The portion of school funding that must be raised locally through
property taxes as set by the Legislature
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, FELE Finance — Financial and Resource Management
C. Federal matching funds required for Title programs
D. Voluntary local contributions above the state minimum
ANSWER : B. The portion of school funding that must be raised
locally through property taxes as set by the Legislature RLE is the
state-mandated local property tax levy that forms part of the FEFP funding
formula.
10. Which of these is NOT typically counted within the FEFP
calculation?
A. Discretionary millage levy
B. State appropriations
C. Private philanthropic donations to individual schools
D. Required Local Effort
ANSWER : C. Private philanthropic donations to individual schools
Private donations fall outside the formal FEFP formula, which is built from
state appropriations and local tax levies.
11. Which of the following is considered a primary federal revenue
source for Florida school districts?
A. Lottery-funded Bright Futures Scholarships
B. Title I, Part A funds for schools with high concentrations of low-income
students
C. Discretionary millage revenue
D. Required Local Effort
ANSWER : B. Title I, Part A funds for schools with high
concentrations of low-income students Title I is a federal program
targeting resources to schools serving disadvantaged students.
12. Florida Lottery proceeds allocated to K-12 education are most
commonly directed toward which purpose?
A. District superintendent salaries
B. Educational Enhancement Trust Fund initiatives and capital projects
C. Teacher pension fund contributions exclusively
D. Federal grant matching only
ANSWER : B. Educational Enhancement Trust Fund initiatives and
capital projects Lottery funds flow into the Educational Enhancement
Trust Fund, supporting enrichment and capital needs.
Page 4 of 61
FELE FINANCE FINANCIAL AND RESOURCE MANAGEMENT:
COMPLETE EXAM QUESTIONS AND VERIFIED SOLUTIONS |
2026/2027
FELE FINANCE
Financial and Resource Management
1. What is the primary purpose of the Florida Education Finance
Program (FEFP)?
A. To allocate federal Title I funds only
B. To ensure equitable funding for public education across Florida's
diverse school districts
C. To replace local property tax revenue entirely
D. To fund exclusively charter school construction projects
ANSWER : B. To ensure equitable funding for public education
across Florida's diverse school districts, the FEFP was created to
equalise educational opportunity by adjusting for local wealth and program
cost differences.
2. In the FEFP formula, what does the term "Base Student Allocation"
refer to?
A. The total per-pupil expenditure after all adjustments
B. The amount allocated solely for capital outlay
C. The dollar amount appropriated per full-time equivalent (FTE) student
before program cost factors are applied
D. The minimum salary guaranteed to instructional staff
Page 1 of 61
, FELE Finance — Financial and Resource Management
ANSWER : C. The dollar amount appropriated per full-time
equivalent (FTE) student before program cost factors are applied
The Base Student Allocation is the foundational per-FTE dollar figure set
annually by the Legislature.
3. Which factor in the FEFP formula adjusts funding based on the
relative cost of different educational programs, such as ESE versus
basic education?
A. Declining Enrollment Supplement
B. Sparsity Supplement
C. Program cost factors
D. District Cost Differential
ANSWER : C. Program cost factors Program cost factors weight funding
to reflect that some programs cost more to deliver than others.
4. The District Cost Differential (DCD) in the FEFP formula primarily
accounts for what?
A. The age of school facilities in a district
B. Regional variation in the cost of living and labor across Florida districts
C. Variation in the number of charter schools per district
D. Differences in student achievement scores between districts
ANSWER : B. Regional variation in the cost of living and labor across
Florida districts The DCD adjusts funding so districts in higher-cost areas
receive proportionally more state funding.
5. Full-time equivalent (FTE) student counts are used in the FEFP
primarily to determine what?
A. Graduation rate calculations
B. School accountability grades
C. Teacher certification renewal deadlines
D. The amount of state funding a district receives based on enrollment
and program participation
ANSWER : D. The amount of state funding a district receives based
on enrollment and program participation FTE counts, taken during
designated survey periods, directly drive the per-student funding
calculation.
Page 2 of 61
, FELE Finance — Financial and Resource Management
6. Which of the following best describes categorical funding within
Florida's school finance system?
A. Funds raised exclusively through local millage
B. Unrestricted funds a district may spend at its own discretion
C. Federal funds distributed based on poverty rate only
D. State funds appropriated for a specific, restricted purpose, such as class
size reduction
ANSWER : D. State funds appropriated for a specific, restricted
purpose, such as class size reduction Categorical funds must be spent
on the designated program and are tracked separately from general
operating funds.
7. A school district experiencing declining enrollment may qualify for
which type of FEFP adjustment?
A. Instructional Materials Allocation
B. Declining Enrollment Supplement
C. Sparsity Supplement
D. Safe Schools Allocation
ANSWER : B. Declining Enrollment Supplement This supplement helps
cushion the financial impact of sudden enrollment drops on a district's
budget.
8. Under Florida statute, which entity is primarily responsible for
establishing local school district millage rates for operating purposes,
within limits set by law?
A. The local property appraiser
B. The Florida Department of Education
C. The State Board of Education
D. The district school board
ANSWER : D. The district school board School boards levy millage
within statutory caps, subject to truth-in-millage requirements.
9. What does "Required Local Effort" (RLE) refer to in Florida school
finance?
A. The minimum instructional expenditure ratio
B. The portion of school funding that must be raised locally through
property taxes as set by the Legislature
Page 3 of 61
, FELE Finance — Financial and Resource Management
C. Federal matching funds required for Title programs
D. Voluntary local contributions above the state minimum
ANSWER : B. The portion of school funding that must be raised
locally through property taxes as set by the Legislature RLE is the
state-mandated local property tax levy that forms part of the FEFP funding
formula.
10. Which of these is NOT typically counted within the FEFP
calculation?
A. Discretionary millage levy
B. State appropriations
C. Private philanthropic donations to individual schools
D. Required Local Effort
ANSWER : C. Private philanthropic donations to individual schools
Private donations fall outside the formal FEFP formula, which is built from
state appropriations and local tax levies.
11. Which of the following is considered a primary federal revenue
source for Florida school districts?
A. Lottery-funded Bright Futures Scholarships
B. Title I, Part A funds for schools with high concentrations of low-income
students
C. Discretionary millage revenue
D. Required Local Effort
ANSWER : B. Title I, Part A funds for schools with high
concentrations of low-income students Title I is a federal program
targeting resources to schools serving disadvantaged students.
12. Florida Lottery proceeds allocated to K-12 education are most
commonly directed toward which purpose?
A. District superintendent salaries
B. Educational Enhancement Trust Fund initiatives and capital projects
C. Teacher pension fund contributions exclusively
D. Federal grant matching only
ANSWER : B. Educational Enhancement Trust Fund initiatives and
capital projects Lottery funds flow into the Educational Enhancement
Trust Fund, supporting enrichment and capital needs.
Page 4 of 61
