Crawford County School SystemBudget DiscussionsAug 28, 2013

Outline• Funding Source Overview• Negative Impacts to School Budget• Steps Taken Prior to FY14• FY14 Budget Cycle

Funding for School Systems

• FY 2002• Federal Funds = 5.6%• State Funds = 56%• Local Funds = 38.4%• FY 2012• Federal Funds = 8.8%• State Funds = 49.5%• Local Funds = 41.7%

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* Information from New Board Member Training, GSBA, Nov 2012

Funding for School Systems• Local Funds• Primarily Ad valorem taxes• Special Purpose Local Option Sales Tax

(SPLOST)• For Capital outlay projects for educational purposes (Not for General Fund use)

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* Information from New Board Member Training, GSBA, Nov 2012

Funding for School Systems• State Funds• QBE, Quality Based Education (majority of

funds)• Based on student FTE counts, Class size, Teacher

training and experience

• Categorical Grants• Pupil Transportation• Equalization• School Nurses

• Targeted Grants such as School Improvement, Special Education

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* Information from New Board Member Training, GSBA, Nov 2012

Funding for School Systems• Federal Funds• Earmarked for certain programs only – very

little flexibility• Includes Nutrition Program (salaries included)• Includes Title I, II, VIB, VI part B, CTAE, etc

6* Information from New Board Member Training, GSBA, Nov 2012

Negative Impacts to Budget• Local Fund Reductions due to

Conservation Use Value Assessment Program (CUVA) enacted in 1992 and Forrest Land Protection Act (FLPA) enacted in 2008 by State of Georgia Legislature• Impact: conservation cost Crawford County

approximately $1.6 million a year ($800k for school system)

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* Information from “A Discussion of Real-Life Tax Revenue Impact on Rural Counties” by Pat Kelly, May 2011

Negative Impacts to Budget

• FTE (Full Time Equivalent) Student Counts Downward Trend

FTE count is a KEY factor in the QBE formula

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Year FTE Year FTE2003 2045 2009 18402004 2000 2010 17912005 1980 2011 18112006 1979 2012 17962007 1952 2013 18152008 1885 2014 1759

Negative Impacts to Budget

• State Austerity, QBE reductions

Reductions total $7,951,130 since 2003! 9

Fiscal Year Reduction Fiscal Year Reduction2003 $187,474 2009 $104,7002004 $217,856 2010 $1,070,4012005 $451,373 2011 $1,254,5592006 $451,369 2012 $1,328,3712007 $208,768 2013 $1,340,5352008 $165,553 2014 $1,170,171

Negative Impacts to Budget• Increasing Health care costs for classified employees

76 classified: (746-162)*76*12 = $532,608 budget increase Anticipate Rates will continue to increase!

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Fiscal Year Cost increase per employee per month

2011 $162

2012 $246

2013 $446

2014 $596

2015 $746

* Information from New Board Member Training, GSBA, Nov 2012

Steps Taken Prior to FY14• Furloughs – impacts all system employees

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Fiscal Year Furlough Days2010 2% + 6 days2011 10 days2012 10 days2013 8 days

1 Furlough Day = approximately $52k impact to annual budget

Steps Taken Prior to FY14• Decline in ‘Fund Balance’ (ie Savings)• Result of passing annual budgets that utilize these funds

to “balance”

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Fiscal Year Fund Balance2011 $968,210.632012 $842,116.162013 $433,524.00

State recommends maintaining a Fund Balance of 5% to 15% of Annual Budget; for $13M budget,

that equals $650k to $1.95M

* Information from New Board Member Training, GSBA, Nov 2012

Steps Taken Prior to FY14

• Staff Reductions• Did not fill Assistant Superintendent Vacancy• Went from 2 to 1 Assistant Principals at CCES• Other unfilled positions:

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Steps Taken Prior to FY14

• Tax increases have been held to a minimum

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Fiscal Year Millage Fiscal Year Millage2003 15.00 2009 13.52004 15.00 2010 13.52005 15.00 2011 13.52006 15.00 2012 13.52007 12.371 2013 13.52008 12.370

Last Tax Increase was 2009

FY14 Budget Cycle• Additional Burdens to FY14 Budget• $408k: ‘Fund Balance’ required to balance FY13

budget is not available this year• $689k: State QBE funding reduction compared to

FY13; based on reduced FTE count, etc• $137k: Increase Health Insurance cost for

classified employees• $1.234M : Total additional expenses added to

FY14 Budget!15

* Numbers quoted are budgeting estimates

FY14 Budget Cycle•What Has Been Done to Date• Reduction to 160 Day Calendar• Unfilled Positions: High School Science,

Counselor, and Others

•What Is In the Proposed Budget• Increase to 10 furlough days• 2.5 Millage Rate Increase

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* Numbers quoted are budgeting estimates

FY14 Budget Cycle• Impacts to the Budget• 160 Day Calendar, Unfilled Positions, 2 Additional

Furlough Days • $400k Expenditure Reduction

• 2.5 Millage Increase • $700k Revenue Increase

• TAVT and ~ $20k Fund Balance will be utilized to Balance Budget

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* Numbers quoted are budgeting estimates

FY14 Budget Cycle

68.3%

2.3%

0.2%

1.6%

3.3%

7.7%

1.1% 8.4%

6.6% 0.4%

State / Local BudgetInstruction

Pupil Support

Professional Development

Media

General Administration

School Administration

Business Services

Maintenance & Operations

Transportation

Other18

* Numbers quoted are budgeting estimates / Federal Funds not Included

FY14 Budget Cycle

87.8%

2.4%

3.2%

1.9%3.0% 1.7%

Salaries & Benefits vs Other

Salaries & BenefitsProfessional ServicesEnergyMaint, Supplies, Comm.TransportationOther

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* Numbers quoted are budgeting estimates / Federal Funds not Included

FY14 Budget Cycle

57.3%

9.9%

5.7%

12.6%8.2%

5.4% 0.8%

Salaries & Benefits Breakdown

InstructionAdministrationMaint, Custodial & BusHealth Ins.RetirementFica/MedicareUnemployment/Comp

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* Numbers quoted are budgeting estimates / Federal Funds not Included