[PPT] - FY13 BUDGET PRESENTATION Ensuring Success For Each Student PowerPoint Presentation

SLIDE 1

Ensuring Success For Each Student

FY13 BUDGET PRESENTATION

SLIDE 2

OPERATING BUDGET FIVE YEAR HISTORY

2009 - $327 million 2010 - $317 million

(6 furlough days)

2011 - $284 million

(8 &10 furlough days)

2012 - $296 million

(3 & 5 furlough days)

2013 - $293 million

Financial Services

SLIDE 3

SIGNIFICANT CHALLENGES

 State Revenue – Austerity Reductions (11 years)  Local Tax Digest – Decline in Revenue (4 years)  Declining Enrollment  Transportation Funding  State Funding Formula Does Not Fund Technology (K – 12)  Early Intervention Program (EIP) Model  Rising Employer Costs –

State Health Insurance for Classified Employees Teachers Retirement System

Financial Services

SLIDE 4

STATE AUSTERITY REDUCTIONS

Financial Services

T

tal $155,945,603
5,000,000

10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

SLIDE 5

TAX DIGEST HISTORY

Financial Services

Calendar Year Increase /-Decrease 2012 (projected)

13.89%

2011

6.57%

2010

15.3%

2009

1.97%

2008 8.24% 2007 10.25% 2006 10.19% 2005 10.11% 2004 9.33% 2003 13.01%

Note: Property tax revenue declined $45.8 million from 2008-2012.

SLIDE 6

TAX DIGEST

Financial Services

$- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Value of One Mill Property Tax (M&O)

$ Millions

SLIDE 7

PROPERTY TAX WEALTH PER PUPIL

Financial Services

District Rank Atlanta City 5 Chatham County 11 Fulton County 20 Forsyth County 33 Cobb County 34 Dekalb County 39 Cherokee County 53 Gwinnett County 87 Henry County 116 Clayton County 118

Note: 180 districts reporting - #1 is wealthiest Source: Georgia Department of Education

(10 Largest Districts)

SLIDE 8

TAX MILLAGE

Financial Services YEAR MAINTENANCE AND OPERATION BOND TOTAL

2012-13 20.00 3.62 23.62(projected) 2011-12 20.00 3.62 23.62 2010-11 20.00 3.62 23.62 2009-10 20.00 3.06 23.06 2008-09 20.00 3.06 23.06 2007-08 20.00 3.06 23.06 2006-07 20.00 3.06 23.06 2005-06 19.40 3.06 22.46 2004-05 18.90 3.06 21.96 2003-04 18.90 3.06 21.96 2002-03 17.65 3.06 20.71 2001-02 17.15 3.06 20.21 2000-01 17.15 3.06 20.21 1999-00 17.50 4.00 21.50 1998-99 17.50 4.00 21.50

SLIDE 9

MILLAGE RATE INFORMATION

Financial Services

ITEM CURRENT M & O MILLAGE House assessed at Fair Market Value 40 % Assessment Rate $ 150,000 X 40 Assessed Value for Tax Purposes Homestead Exemption $ 60,000

4,000

Tax Base for Property Tax Millage Rate $ 56,000 20 Mills M & O School Tax $ 1,120

SLIDE 10

ENROLLMENT

5,000

10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

Financial Services

(10 Year History)

SLIDE 11

TEACHERS RETIREMENT SYSTEM (TRS)

Financial Services

Employee Rate Employer Rate FY2013 6.00% 11.41% FY2012 5.53% 10.28% FY2011 5.53% 10.28% FY2010 5.25% 9.94% FY2009 5.00% 9.28%

Note: Employer rate increase ($2 million for FY2013)

SLIDE 12

EMPLOYER HEALTH INSURANCE COSTS CLASSIFIED EMPLOYEES

Financial Services

Employees Currently Participating Employer Cost Per Employee Annual Employer T

tal Cost

Annual

FY2012 1,308 $3,554.40 $ 4,649,155 FY2013 1,308 $5,354.40 $ 7,003,555 FY2014 1,308 $7,154.40 $ 9,357,955 FY2015 1,308 $8,954.40 $11,712,355

SLIDE 13

PUPIL TRANSPORTATION REVENUE/EXPENDITURES

Financial Services

2,000,000

4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Expenditures State Funding 2013

SLIDE 14

FY13 OPERATING REVENUE/EXPENSE

Financial Services

Revenue

$282,278,329

Expense

$293,258,524

Reserves to Balance Budget

$ 10,980,195

(2% Decrease) (1% Decrease)

SLIDE 15

REVENUE ASSUMPTIONS

Financial Services

13.89% decrease in local tax digest ($14.8 million) 96% tax collection rate State austerity reduction FY2013 ($28 million) State Revenue-Equalization Grant ($23million)

Georgia attempts to equalize the inequities in property wealth per student that exist in the state…FY12 ($17 million)

SLIDE 16

REVENUE

Financial Services

Local 32.5% State 66.7% Federal 0.8%

SLIDE 17

FY13 STATE REVENUE (QBE)

Financial Services

QBE Earnings

$221,651,750

Local Fair Share

$ -31,676,373

Austerity Reduction

$ -28,039,255

Equalization

$ 23,129,850

Nursing

$ 650,419

Transportation

$ 1,428,782

Total Earnings

$187,145,173

(Projected)

SLIDE 18

EXPENDITURE ASSUMPTIONS

Financial Services

Decreased Staffing: 175 teacher positions ($11million) Eliminate furlough days for employees ($1.2 million per day) Eliminate SPED supplements ($300,000) Freeze salaries for all employees (4th consecutive year) “Instructional Management System” – Testing Budget ($1.3 million) Reduce Board paid life insurance to $10,000 per employee

($229,000)

Three Tier Transportation

SLIDE 19

EXPENDITURES

Financial Services

Business Services/General Administration 1% Student Transportation 5% School Administration 7% Central Support Services 6% Maintenance/ Operations 10% Instruction 71%

SLIDE 20

EXPENDITURES PER STUDENT COMPARISON

Financial Services

$- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 Atlanta City Schools Chatham County Dekalb County Fulton County State Average Gwinnett County Cobb County Cherokee County Clayton county Forsyth County Henry County

FY11 Expenditures Per Student Comparison (10 Largest Districts) $7,401 $8,594

Source: GDOE Financial Data Collection System http://app.doe.k12.ga.us

SLIDE 21

GENERAL ADMINISTRATION EXPENDITURES

Financial Services

School System FTE 2011 (Students)

Gen. Admin. Exp.

Per Student Rank Atlanta Public 49,032 $ 2,969 1 Gwinnett 162,928 $ 579 37 DeKalb 97,313 $ 502 55 State Average 9,117 $ 451 Chatham 33,857 $ 442 72 Fulton 91,239 $ 442 73 Clayton 50,225 $ 353 102 Forsyth 36,202 $ 248 159 Cobb 108,507 $ 228 166 Cherokee 38,776 $ 204 172 Henry 41,026 $ 174 175

Source: Financial Data Collection System http://app.doe.k12.ga.us Note: Rank is based on #1 spending MOST amount per student…180 districts reporting.

SLIDE 22

PER STUDENT EXPENDITURE

Financial Services

38,850 Students $7,548

Note: Amount represents annual operating expenses only.

SLIDE 23

EXPENDITURES

Financial Services

Other Expenditures 10% Salaries & Benefits 90%

SLIDE 24

SALARIES AND BENEFITS

Financial Services

Facilities & Maintenance $6 million (2.3%) General Administration $7 million (2.7%) Transportation $10 million (3.8%) School Positions $242 million (91.2%)

Total Salaries / Benefits $265 million

SLIDE 25

SALARY SCHEDULE RECOMMENDATIONS

Financial Services

All employees will move up on the appropriate

schedule for an earned experience step.

Salary schedules will shift so the step reflects little

r no increase – salaries will be frozen.

Net result: most employees will receive the same

pay as they are receiving in current year if they are employed in the same position.

SLIDE 26

SUMMARY

Financial Services  Reduction in total revenues and expenditures  Direct instruction budget 71%  State Austerity Reduction ($28 million)  Equalization Grant ($23 million)  Tax Digest Decrease 13.89% ($14.8 million)  90% Budget Employee Salaries/Benefits  Decrease staffing-175 teacher positions ($11 million)  Employees will not receive a salary increase  Eliminate SPED supplements ($300,000)  Board paid life insurance $10,000 (savings $229,000 annually)  Student Enrollment Decline  Three Tier Transportation  Eliminate Furlough Days  Rising Employer Costs – Benefits  Balance Budget with Cash Reserves ($10.9 million)