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

FY13 BUDGET PRESENTATION Ensuring Success For Each Student

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

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

STATE AUSTERITY REDUCTIONS 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 T otal $155,945,603 Financial Services

TAX DIGEST HISTORY 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. Financial Services

TAX DIGEST Value of One Mill Property Tax (M&O) $8.0 $7.0 $6.0 $5.0 $ Millions $4.0 $3.0 $2.0 $1.0 $- 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Financial Services

PROPERTY TAX WEALTH PER PUPIL (10 Largest Districts) 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 Financial Services

TAX MILLAGE YEAR BOND TOTAL MAINTENANCE AND OPERATION 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 Financial Services

MILLAGE RATE INFORMATION ITEM CURRENT M & O MILLAGE House assessed at Fair Market Value $ 150,000 40 % Assessment Rate X 40 Assessed Value for Tax Purposes $ 60,000 Homestead Exemption -4,000 Tax Base for Property Tax $ 56,000 Millage Rate 20 Mills M & O School Tax $ 1,120 Financial Services

ENROLLMENT (10 Year History) 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - Financial Services

TEACHERS RETIREMENT SYSTEM (TRS) 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) Financial Services

EMPLOYER HEALTH INSURANCE COSTS CLASSIFIED EMPLOYEES Employees Employer Cost Employer Currently Per Employee T otal Cost Participating Annual 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 Financial Services

PUPIL TRANSPORTATION REVENUE/EXPENDITURES 16,000,000 14,000,000 12,000,000 10,000,000 Expenditures State Funding 8,000,000 6,000,000 4,000,000 2,000,000 - 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Financial Services

FY13 OPERATING REVENUE/EXPENSE  Revenue $282,278,329 (2% Decrease)  Expense $293,258,524 (1% Decrease)  Reserves to Balance Budget $ 10,980,195 Financial Services

REVENUE ASSUMPTIONS  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) Financial Services

REVENUE Federal 0.8% Local 32.5% State 66.7% Financial Services

FY13 STATE REVENUE (QBE)  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) Financial Services

EXPENDITURE ASSUMPTIONS  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 (4 th 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 Financial Services

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

EXPENDITURES PER STUDENT COMPARISON FY11 Expenditures Per Student Comparison (10 Largest Districts) $16,000 $14,000 $12,000 $10,000 $8,594 $7,401 $8,000 $6,000 $4,000 $2,000 $- Atlanta Chatham Dekalb Fulton State Gwinnett Cobb Cherokee Clayton Forsyth Henry City County County County Average County County County county County County Schools Source: GDOE Financial Data Collection System http://app.doe.k12.ga.us Financial Services

GENERAL ADMINISTRATION EXPENDITURES School System FTE 2011 Gen. Admin. Exp. Rank (Students) Per Student 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. Financial Services

PER STUDENT EXPENDITURE 38,850 Students $7,548 Note: Amount represents annual operating expenses only. Financial Services

EXPENDITURES Other Expenditures 10% Salaries & Benefits 90% Financial Services

SALARIES AND BENEFITS Facilities & Transportation Maintenance $10 million $6 million (3.8%) (2.3%) General Administration $7 million School Positions (2.7%) $242 million (91.2%) Total Salaries / Benefits $265 million Financial Services

SALARY SCHEDULE RECOMMENDATIONS  All employees will move up on the appropriate schedule for an earned experience step.  Salary schedules will shift so the step reflects little or 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. Financial Services

SUMMARY  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) Financial Services