Backup Documents 12/06/2005 W
BCC WORKSHOP
MEETING
'W/SHERlFF'S DEPT.
BACK-UP DOCUMENTS
DECEMBER 6, 2005
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Background
The Florida Price Level Index
(FPLI) was established by the
Legislature as the basis for the
District Cost Differential (DCD) in
the Florida Education Finance
Program (FEFP). In this role, the
FPLI is used to represent the costs of
hiring equally qualified personnel
across school districts. Since 1995,
and at the request ofthe Legislature,
the Bureau of Economic and
Business Research (BEBR) at the
University of Florida has performed
an ongoing review of the
methodology of the FPLI and has
made appropriate recommendations
to improve it. Since 2000, BEBR has
also been responsible for calculating
the FPLI, under the direction and
supervision of the Florida
Department of Education. To denote
its intended use as an adjustment
factor for school personnel costs, and
to distinguish it from other price
indexes produced by BEBR but not
used or published by the Department
of Education, the index presented in
this report is referred to as the School
Personnel FPLI, or FPLCSP.
The 2004 Results
Table I (see next page) presents
the index for 2004, which is
constructed so that the population-
weighted average is 100. Counties
with index values above 100 contain
58.3 percent of the state's population.
The median Floridian, ranked by
county FPLC SP, lives in Pinellas
county, with an index value of
100.36. That is, half of the state's
residents live in counties with index
values that are equal to or greater than
100.36, and half in counties with
index values that are less than or
equal to 100.36. The 38 counties with
index values below 97.00 together
account for only 16.6 percent of the
state's population.
The map on page 5 shows the
distribution of the FPLI SP across
R".___.,"'·
the state. The highest index values
tend to occur in the southern portion
of the state, while 32 of the 38
counties with index values below
97.00 are north of Tampa. This is to
be expected, since land within easy
reach of employment and shopping
centers becomes very scarce, and
thus very expensive, when population
pressures reach the high levels seen
in south Florida, leading to high
housing prices or long commutes, for
which workers must be compensated,
offsetting the attractiveness of that
area's climate.
Methodology in Brief
Use of the FPLI in the DCD
assumes that, in order to attract
equally qualified personnel, districts
TABLE I
2004 Florida Price Level Index
COUNTY 2004 FPU SP Rank
Alachua 98.01 (24)
Baker 97.86 (26)
Bay 94.32 (50)
Bradford 97.28 (28)
Brevard 98.24 (22)
Broward 103.11 (3)
Calhoun 93.07 (57)
Charlotte 95.95 (38)
Citrus 93.38 (53)
Clay 99.92 (12)
CoHier 104.81 (1)
Columbia 94.24 (52)
DeSoto 95.58 (39)
Dixie 92.64 (58)
Duval 102.29 (5)
Escambia 94.61 (49)
~~~ 94ßO 0~
Franklin 92.55 (59)
Gadsden 96.84 (31)
Gilchrist 94.77 (47)
Glades 96.76 (32)
Gulf 90.86 (65)
Hamilton 91.89 (62)
Hardee 95.05 (44)
Hendry 98.45 (19)
Hernando 96.43 (34)
Highlands 93.28 (56)
HiIIsborough 101.06 (8)
Holmes 89.09 (67)
Indian River 97.65 (27)
Jackson 92.00 (61)
Jefferson 96.57 (33)
Lafayette 91.20 (64)
Lake 98.13 (23)
Lee 100.25 (10)
Leon 99.46 (14)
Levy 94.62 (48)
Uberty 94.26 (51)
Madison 93.29 (55)
Manatee 97.98 (25)
Marion 96.02 (37)
Martin 98.39 (20)
Miami-Dade 102.03 (6)
Monroe 103.06 (4)
Nassau 99.51 (13)
Okaloosa 95.40 (42)
Okeechobee 95.19 (43)
Orange 101.17 (7)
Osceota 98.83 (17)
Palm Beach 103.39 (2)
Pasco 98.36 (21)
Pinellas 100.36 (9)
Polk 98.85 (15)
Putnam 96.11 (36)
St. Johns 98.85 (15)
St. Lucie 97.22 (29)
Santa Rosa 94.78 (46)
Sarasota 98.56 (18)
Seminole 99.99 (11)
Sumter 95.50 (41)
Suwannee 91.82 (63)
Taylor 93.38 (53)
Union 96.20 (35)
Volusia 95.53 (40)
Wakulla 96.90 (30)
Walton 92.43 (60)
Washington 90.63 (66)
must be able to offer salaries that will
support similar standards ofliving. It
further assumes that the FPLI
measures the relative costs of
maintaining a given standard of
living across Florida's counties-that
is, the FPLI is explicitly used as a
Cost of Living Index (COLI) in the
DCD calculation.
The Consumer Price Index (CPI),
constructed by the U.S. Bureau of
Labor Statistics (BLS) using the
concept of a COLI as a framework,
is perhaps the best known example
of a price index.l Indeed, use of the
FPLI to index for costs from one
Florida county to the next parallels
the use of the CPI by the Federal
Government to index Social Security
funds from one year to the next. The
CPI, however, is not a simple
weighted average of the prices of a
specific market basket of goods and
services. Rather, the BLS continually
evaluates and improves its methods.
Numerous adjustments are made to
measuted price data so that the CPI
will more closely approximate a
temporal COLI, making it more
appropriate for its intended
applications.2 BEBR's work on the
FPLI since 1995 has been aimed at
making it more accurate and
appropriate for its intended use as a
spatial COLI.
At a given location, factors other
than the monetary costs of goods and
services purchased in the
marketplace that significantly affect
the compensation needed to maintain
a given standard of living are nearly
the same from one year to the next.
Variations in climate from year to
year, for example, are usually so
'Question 4 under "Frequently Asked Questions" at
the CPI homepage, ill 'I , ,\\,\\\ his go., ',¡,,:'
hOf1\c hIm, discusses this point. Chapter 17 of the
BLS Handbook of Methods, which may be accessed
at the same web site, contains more detail.
'Links to documentation for many hedonic
adjustments may be found at htip '\I 'oIl< his 2D\ i
'.,:pi--homL'" !1Im.
small they can be ignored when
estimating changes in the cost of
living. Across locations, however,
such factors as climate, access
to lakes or sandy beaches, and
cultural opportunities vary widely.
Moreover, clímate, the range of
available cultural and recreational
opportunities, and the mix of public
services and taxes all affect workers'
standards of living and thus the
ability of employers-including
school districts-to hire personnel.
Thus, a COLI intended to make
comparisons across space must
allow for variation in such factors.3
Beginning with the 2003 FPLI,
BEBR calculated a version of the
FPLI that is more appropriate for
direct adjustment for personnel
cost differences across school
districts by using private market
wages to directly measure relative
compensation required to attract
equally qualified workers. That
index is referred to as the FPLI SP
in this report.4 The FPLI _ SP is
intended to approximate a fully
amenity adjusted price level index,
that is, a true spatial COLI, as closely
as possible given the data available.
Market wages adjust both for
differences in conditions across areas
and for differences in the location of
employment within areas. Across
areas, other things being equal,
places that are more productive, and
thus more attractive to firms, will
have higher wages and prices, while
places that are more pleasant to live
in, and thus more attractive to
workers, will have lower wages and
higher prices. Consequently, a simple
weighted average of the relative
'In terms of the CPI methodology adapted to a
spatial context, this would be analogous to a full
hedonic adjustment to the price ofland across space
to reflect alllàctors affecting standards ofliving that
are determined with choice of residentiallocatìon,
'In the 2003 FPLI Report, what is now designated
as the FPLI_SP was named the Low Centrality
FPLCA.
prices of purchased goods and
services is inferior to the FPLI _ SP as
a COLI in a spatial context. Areas that
have lower than average prices of
purchased goods and services, if they
are otherwise less attractive to live
in, could well have higher than
average labor costs.
Within areas, firms that must
locate closer to downtown must pay
higher wages than firms tree to locate
near outlying residential areas. That
is because workers at downtown
firms must either pay higher housing
costs near downtown or endure
longer commutes. Further, the larger
the difference between real estate
costs downtown and in outlying
areas, the larger this pay difference
will be. Therefore, occupations and
industries that tend to locate farther
from downtown will show less
difference in average wages between
cities with high housing costs and
cities with low housing costs than
occupations and industries that tend
to be concentrated near downtown.
All else being equal, school related
occupations are seven percent less
likely to be in a central county of a
metropolitan statistical area than is
the average occupation.
In calculating the FPLI_SP,
BEBR fU'St used statistical techniques
to estimate a raw index of wages for
comparable workers employed in
jobs of comparable centralization of
employment across counties. Wage
data for this calculation consist of
average wages for over 700
occupations across Florida's 67
counties. Although data for each
occupation are not available for all
67 counties, many observations are
available in even the smallest
counties. The Labor Market
Information division of Florida's
Agency for Workforce Innovation
collects these data as part of the U.S.
Bureau of Labor Statistics'
Occupational Employment Statistics
(OES) Survey. Measures of
occupational centralization are also
calculated trom these data, and are
used in conjunction with data on the
costs of goods and services, including
housing costs, to capture adjustments
to housing costs for occupations with
locational centrality comparable to
school personnel.
Since the quality and extent of
the data may vary with the size of
the labor market in a county, the
raw index is statistically and
geographically smoothed. To carry
out the statistical smoothing, BEBR
constructs a model relating the raw
index to the costs of goods and
services, the raw wage index in
surrounding counties, and county
retirement-age and total population.
This model is used to generate a
"predicted" value for the raw index.
A weighted average of the raw
and predicted values is then
calculated, where the weights in each
county are chosen to maximize the
accuracy of the final index, given the
reliability of each county's raw and
predicted indexes.
The second type of smoothing is
geographic in nature. Workers who
live in suburban or rural counties
surrounding a larger urban county
will commute to the larger county for
work if wages in the larger area are
sufficiently higher to compensate for
any extra commute time. Further,
given the design of the OES survey,
it is expected that the index is most
accurate in metropolitan counties
(counties with cities that lend their
names to one of Florida's
metropolitan statistical areas, as
defined by the U.S. Census Bureau).
Therefore, the index has been
constrained in non-metropolitan
counties to be no less than the
commute-time-adjusted wage index
of nearby metropolitan counties.
FPLI History
Table II (pages 6 and 7) lists the
FPLI values for the 2005-2006 DCD
calculation. The FPLI SP has been
calculated only for 2003 and 2004
FPLI. The values in the table for 2002
represent a fixed weight index of
relative prices for a selected market
basket of goods and services.
Relative rankings are given in
parentheses next to the index number
for each year. The rankings can be
somewhat misleading, at least for the
counties grouped near the middle or
lower range, where modest changes
in the index value from year to year
can produce large changes in a
county's relative ranking.s
Summary
The 2004 School Personnel
Florida Price Level Index has been
presented, along with an explanation
of the methodology used to compute
it. Note that this is a cross-sectional
measure that compares the price
levels among Florida's 67 counties
and is not designed to measure
inflation from one year to the next.
This report can be found on
the Internet at: http:\\\\w. lirnëdu.
dOë:refp.
5 An index of the relative costs of goods and
services, the BEBR FCPI, a spatial COLI for the
average occupation, the BEBR FCLI, and the data
and calculations supporting the FPLI_SP may be
accessed at " \\'\\ bchr un celli after April I ,2005.
MAP I
School Personnel Florida Price Level Index
o 89.01 to 93.99
o 94.00 to 96.99
c:;] 97.00 to 98.99
. 99.00 to 100.99
. 101.00 and over
M0;:;Þtl__ ..",
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TABLE II
Historical Florida Price Level Index: 2002 TO 2004
(POPULATION WEIGHTED AVERAGE = 100.00)
COUNlY 2004 FPU_SP 2003 FPLCSP 2002 FPU_SP
--- _.._-"¥->. ._--.- _.
Alachua 98.01 (24) 99.46 (15) 93.61 (33)
Baker 97.86 (26) 97.58 (29) 91.79 (45)
Bay 94.32 (50) 95.03 (51) 91.83 (44)
Bradford 97.28 (28) 97.01 (31) 91.63 (49)
Brevard 98.24 (22) 99.02 (21) 95.39 (24)
Broward 103.11 (3) 102.96 (4) 107.96 (3)
Calhoun 93.07 (57) 95.55 (47) 88.34 (66)
Charlotte 95.95 (38) 95.66 (46) 93.50 (34)
Citrus 93.38 (53) 94.03 (57) 90.90 (56)
Clay 99.92 (12) 99.63 (13) 92.86 (37)
Collier 104.81 (1) 104.47 (1) 103.10 (5)
Columbia 94.24 (52) 93.97 (58) 89.38 (62)
DeSoto 95.58 (39) 96.19 (38) 96.03 (16)
Dixie 92.64 (58) 92.98 (62) 91.44 (53)
Duval 102.29 (5) 102.95 (5) 95.29 (25)
Escambia 94.61 (49) 95.69 (45) 92.24 (42)
Flagler 94.80 (45) 94.54 (55) 94.50 (30)
FrankJin 92.55 (59) 95.02 (52) 95.01 (27)
Gadsden %.84 (31) 99.42 (16) 91.97 (43)
Gilchrist 94.77 (47) 95.13 (50) 90.26 (61)
Glades 96.76 (32) 97.37 (30) 95.83 (17)
Gulf 90.86 (65) 93.24 (60) 91.61 (50)
Hamilton 91.89 (62) 92.28 (63) 88.32 (67)
Hardee 95.05 (44) 94.9 (54) 92.41 (41)
Hendry 98.45 (19) 99.08 (20) 97.16 (12)
Hernando 96.43 (34) 96.28 (36) 91.74 (46)
Highlands 93.28 (56) 93.71 (59) 92.84 (38)
HWsborough 101.06 (8) 101.18 (8) 99.53 (8)
Holmes 89.09 (67) 90.3 (67) 89.10 (65)
Indian River 97.65 (27) 96.91 (32) 95.61 (20)
Jackson 92.00 (61) 94.46 (56) 89.30 (63)
Jefferson 96.57 (33) 99.15 (18) 93.71 (32)
Lafayette 91.20 (64) 93.13 (61) 90.53 (59)
Lake 98.13 (23) 98.79 (23) 94.64 (29)
(Continued...)
----.-,---'"
TABLE II
Historical Florida Price Level Index: 2002 TO 2004
(POPULATION WEIGHTED AVERAGE = 100.00)
COUNlY __==....~_~~_~~~:=~~...__,,=.~=,~===,__.__2<>.~~c~~!:.I=s.~_.__ . .-,=='''==oc___~~<>'~_~~9~~~~.,
.- ,.....- ---_.. ... ~--
Lee 100.25 (10) 100.24 (10) 97.38 (10)
Leon 99.46 (14) 103.22 (3) 95.56 (21)
Levy 94.62 (48) 94.98 (53) 91.69 (48)
Liberty 94.26 (51 ) 96.77 (34) 91.60 (51)
Madison 93.29 (55) 95.78 (44) 91.51 (52)
Manatee 97.98 (25) 96.87 (33) 97.31 (11)
Marion 96.02 (37) 95.99 (40) 93.14 (36)
Martin 98.39 (20) 99.15 (18) 98.60 (9)
Miami-Dade 102.03 (6) 100.34 (9) 109.24 (2)
Monroe 103.06 (4) 101.66 (6) 113.56 (1 )
Nassau 99.51 (13) 99.23 (17) 93.30 (35)
Okaloosa 95.40 (42) 95.51 (48) 92.64 (40)
Okeechobee 95.19 (43) 96.5 (35) 95.53 (22)
Orange 101.17 (7) 101.63 (7) 96.71 (13)
Osceola 98.83 (17) 98.45 (25) 96.09 (15)
Palm Beach 103.39 (2) 103.61 (2) 106.95 (4)
Pasco 98.36 (21 ) 98.2 (28) 95.51 (23)
Pinel/as 100.36 (9) 100.24 (10) 101.95 (6)
Polk 98.85 (15) 98.85 (22) 94.85 (28)
Putnam 96.11 (36) 96.24 (37) 90.67 (57)
St. Johns 98.85 (15) 98.57 (24) 95.76 (18)
St. Lucie 97.22 (29) 98.28 (27) 95.72 (19)
Santa Rosa 94.78 (46) 95.79 (43) 91.21 (55)
Sarasota 98.56 (18) 98.45 (25) 99.60 (7)
Seminole 99.99 (11 ) 100.01 (12) 96.52 (14)
Sumter 95.50 (41) 95.14 (49) 91.72 (47)
Suwannee 91.82 (63) 92.1 (64) 91.23 (54)
Taylor 93.38 (53) 95.87 (42) 92.75 (39)
Union 96.20 (35) 95.92 (41) 90.55 (58)
Volusia 95.53 (40) 96.16 (39) 95.06 (26)
Wakulla 96.90 (30) 99.48 (14) 93.85 (31)
Walton 92.43 (60) 91.84 (65) 90.49 (60)
Washington 90.63 (66) 91.68 (66) 89.19 (64)
The 2004 Florida Price Level Index was prepared by the Bureau of Economic and Business Research
at the University of Florida and the staff of the Florida Department of Education,
Deputy Commissioner for Finance and Operations.
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Collier County
Sheriff's Office
Current Challenges:
Losing Current (seasoned) Members
Unable to Attract New Members
Nationwide Law Enforcement Officer, Corrections
and Dispatch Applicant Shortfall
Shrinking, Aging Labor Force
Limited Housing Options
General Cost of Living
~ Continued Impact of Growth
Increased Demand for Services
2
1
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Increased Demand for Services
Example First Weekend of December:
Snowfest (20,000 attendance)
Swamp Buggy Parade & Races
Car Show at Berkshire Commons
Two Real Estate Auctions
Holiday Shopping
- Routine Calls for Service
Gas Pipe Break
Circle of Burnout
/ffiCient Staffing~
Increase\ Group Health overe
Physical 0 erioration Fatigue/Stress
2
CCSO Members Exodus
,9r;
Calendar Year 2005 (to date)
103 Members have left or
notified that they are
leaving.
869.81 YEARS of
experience, training, and
service lost.
Turnover in the Certified Law
Enforcement Field of 39
Deputies representing
523.77 YEARS service.
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._~.,,_.............,'.......~ ,.._-,...... '..
~.... n'~ _ ...." ,""~........
As of 11/30/05
Reason for Departures
-
Better Position
Better Benefits
Won the Housing Lottery (like salary in area
with lower housing and cost-of-living)
Homesick
Aging Parents
Portability of Benefits
Improved Opportunities
Educated, experienced members in demand
3
"-'-.'. "."....,._~,-,,-,"---'".....
Labor Cost Mandates
FMLA: Must permit new parents leave
Must permit care of immediate family
COBRA: Group Health Portability
Pension Portability
f---
Military Deployment
Community Implications
I--
Quality of Life
Crime Rates
Response Time
Impersonalization of Service
Automation
Technology
Increased Cost to Taxpayer
Losing Members at 3 to 5 Year Mark
Loss of Experience
Break Even on Training Investment
Increased Overtime Cost
4
._...~~----,~
Collllr COIIIII Shlrlffs omCI
~ 14.4% or 180 members...
~ 9.8% of all CCSO Certified
Law Enforcement Deputies...
~ 27.7% of all CCSO Certified Jail
Deputies ...
~ 13.4% of all CCSO Non-Certified
Members...
- -
Live Out of County
9
Members Living Out of County
Cost Not Measured
.- _..~-"------,.._,~.,'_.<.-..
Increased Road Traffic:
Reduction in Safety
Increased Road
Maintenance
Environmental Impact
Gasoline Shortage
Productivity Reduced by
Fatig ue Related to
Commute
Ready Availability in
Emergency
Stakeholder in Community
10
5
--"_."--^'--~'--'~_.,__,~_,_.. .,,_." ..._..~... - ~ ,-...... _.....,~.·_v__,..,...,_
Current Market Availability
Currently there is one single family
residence for sale in Collier County for
less than $100,000. - a 1977 Mobile
Home with 870 square feet of living
area in a 55+ community.
There are 21 single family residences for
sale in Collier County for less than
$181,950. All are either condominiums
- - with less than 800 square feet of living
area or mobile homes. Many are in 55+
communities.
Source: NABOR Website 10/18/05 11
Temporary Housing
~
Four (4) rentals available for under $1,000
per month.
Pets not permitted at any of the four.
All four are available as annual rental only.
All four offer 2 bedrooms.
One mobile home; three apartments
Condo Conversions
l\ILS website - 11/2005
12
6
CCSO Must:
Meet Constitutional Obligation to Provide Public
Safety
In a Fiscally Responsible Manner
Recognize Limited Housing Options
Recognize General Cost of Living
Work with Local Entities to Develop Strategies to
Recruit and Retain Sufficient Staff to Maintain
Quality of Life
Compete with Local, State and US Locations with
more
Competitive Wage and Benefits
to offset current conditions related to housing and
transportation costs.
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13
Questions
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14
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