Georgia Budget & Policy Institute Claire Suggs, Senior Education - PowerPoint PPT Presentation

Education Funding Overview Georgia Budget & Policy Institute Claire Suggs, Senior Education Policy Analyst June 6, 2014 Budget Overview | www.gbpi.org

Who We Are The Georgia Budget and Policy Institute produces research and state budget analysis to show ways Georgia can provide better education, health care and opportunity for everyone. Budget Overview | www.gbpi.org

State Funding Since 2002 in Georgia: Other Other State funding per student has declined 15.3 percent 27.6% 51.5% 51.5% Education Education The percent of economically disadvantaged students climbed from 45 to 60 percent.

K-12 Formula Underfunded by $1 Billion in 2014

Shifting responsibility for K-12 funding State of Georgia: State of Georgia: Funding sources for K-12 Funding Sources for K-12 education, FY2002 Education, FY 2013 Federal 6% Federal 8% Local 38% State State Local 51% 56% 41% SOURCE: Georgia Department of Education

Local Funding Between 2008 and 2012 : Other Other Tax digest fell 17.3 percent between 2008 and 2012. 27.6% 51.5% 51.5% Local revenue per student fell by 5.8 percent. Education Education

Impact of Funding Losses 71 percent of responding districts cut the school year Other Other 95 percent increased class size 27.6% 51.5% 51.5% About 70 percent have eliminated instructional support Education Education positions Nearly 80 percent have cut central office staff 82 percent are using reserve funds this year

Impact of Funding Losses Percent of Districts Reducing Programs 70% 62% Other Other 60% 27.6% 50% 42% 51.5% 51.5% 38% 40% Education Education 26% 30% 20% 10% 0% Scaling back programs for Reducing or eliminating art Eliminating elective courses Reducing non-athletic struggling students or music extracurricular programs

FY 2015 Budget ($19.9 Billion)

Revenue Sources

Georgia Revenue by the Numbers 49 th State tax revenue per person (2012) 46 th State tax revenue as percentage of income (2012) 46 th State and local tax revenue per capita (2011)

Georgia Revenue as a Percentage of Income Georgia’s Revenue at Historic Low at Historic Low – 7.0% 6.5% 6.0% 6.3% 6.0% 6.0% 5.7% 6.0% 6.0% 6.0% 6.0% 5.9% 2007 5.9% 6.0% 6.0% 5.7% 5.9% 5.6% 1989 5.6% 5.5% 5.5% 4.6% 5.8% 5.6% 5.1% 5.3% 5.0% 5.3% 5.3% 4.7% 2003 4.7% 5.4% 2014 4.5% 4.6% 4.5% 2010 4.7% 4.0% FY FY Revenues as a Percentage of Income Fiscal Years 1989 – 2014 FY FY FY FY FY FY FY FY FY FY FY 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013

Revenues Finally Surpass 2007 Levels General and Motor Fuel Funds 2007-2015 Fiscal Years

Per Capita Revenues Still below 2007 $2,011 $1,968 $1,879 $1,944 $1,831 $1,741 $1,688 $1,742 $1,566

Total QBE Funding FY 2015 ($514 Million) $480 Million QBE 0 $29 Million QBE Local 5 Mill Share 0 $5 Million QBE Equalization 0

QBE Funding FY 2015 ($480 Million) $314 Million Partial Restoration K-12 Formula Cut 0 $100 Million Formula Growth (Enrollment and T&E) 0 $57 Million Teacher Retirement System 0 $9 Million Other 0

K-12 Formula Underfunded by $747 Million in 2015

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