north carolina school finance: state and county funding - rebecca troutman
DESCRIPTION
NCACC Intergovernmental Relations Director Rebecca Troutman discusses the funding sources for public schools in North Carolina during a workshop held Aug. 23, 2013, at the NCACC's 106th Annual Conference.TRANSCRIPT
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School Finance: State & County Funding
Rebecca Troutman NCACC Intergovernmental Relations Director
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Statewide Averages of County Expenditures, $13 Billion 2011-12
Education 28%
Debt Service 13%
Human Services
19% General Govt
8%
Public Safety 18%
Other 14%
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Who Provides Most $ to Schools?
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Counties
State
Feds
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Public School Resources, $12.5 Billion 2011-12
State $7.6B 60% Federal
$1.7B 14%
County $3.2B 26%
Current Expense & Capital
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Funding Sources for Public Schools, $12 Billion Current Expense
State $7.6B 64%
Federal $1.7B 14%
County $2.7B 22%
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County Funding Has Become Less Important?
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False
True
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Sources of Per Pupil Funding, CE (Excludes Nutrition)
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
22%
22.2%
State Federal County
65.3%
72.8%
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Who Provides More Construction $ to Schools?
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Counties
State
Feds
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Funding Sources for Public Schools, $616 Million Capital
State $16.3M
3% Federal $56.1M
9%
County $543.8M
88%
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School Capital Funding Drops in Recession, Per Capita
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$181 $187 $114 $85
$63
$262 $268 $268 $261
$286
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2007-08 2008-09 2009-10 2010-11 2011-12Other School Current School Capital Other Operating Capital Outlay Salaries & Wages
School Current School Capital
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STATE FUNDING OF PUBLIC EDUCATION – THE ALLOTMENT STORY DIRECT FUNDING TO LEAS & CHARTERS
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State provides same $ to each school?
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True
False
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State Budgeting thru Allotments
Allotments sent directly to LEA & charter – LEA allocates amongst schools – LEA may transfer amongst most allotments
For 2014-15 biennium No transfers to central office Must abide any restrictions per fed law No transfers from Excellent Public Schools
– State funds revert at end of fiscal year 13
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State Allotments
Allotments funding by Purpose: – Basic – directed at all students – Supplemental – targeted at specific
student groups or LEA characteristics
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Basic Allotments
Classroom teachers – Allocated per ADM class size; e.g. 1-3 = 1:18,
10:12 = 1:29
Teacher assistants – Dollar allotment of $939.79 per k-3 student—
2014, reduced $243 in 2014
Instructional support (counselors, social workers) – 1 per 218.55 ADM; increased in 2014 15
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Basic Allotments
Instruction Supplies & Textbooks – Dollar allotment of $28.58 ADM instruct supplies – Dollar allotment of $14.26 ADM textbooks
Children with Disabilities – Dollar allotment of $3,671.75 per eligible
student—2014, limited to 12.5% of ADM
Gifted & Talented Children – Dollar allotment of $1,237.29 per eligible
student—2014, limited to 4% of ADM 16
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Basic Allotments
School safety measures? – Part of at-risk allotment – Each LEA receives roughly $38,000 per high
school to “purchase” school resource (LEO) or safety (security guard) officer = $22 million
– LEAs not required to spend allotment on SRO Only 26 of 115 do so
– LEAs can use state, federal, or county funding – Add. funding in 2014
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State Avg. = $5361
Current Expense Only
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Supplemental & Categorical State Allotments
Small schools – Allotted only to county LEAs < 3,239 ADM or <
4,080 ADM w/ property tax base < statewide avg. – Revised formula in 2015
Low wealth schools – Allotted only to LEAs with certain economic &
property tax base characteristics – Issue with MOE
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STATE ACTIONS IMPACTING PUBLIC EDUCATION
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Excellent Public Schools Act
Teacher tenure – Replaces with 1-4 year contract, depending upon performance
Reading literacy concentration No automatic promotion
– Must read at grade level in 3td grade or retained Transparency in schools
– Must publish literacy success/failure & A-F grades – Must publish budget deviation
NC Teacher Corps – In lieu of Teaching Fellows – Recruit & place college grads & mid-career 21
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County School Construction Funds
40% of net lottery proceeds – $192 m v. $100 m appropriated – Statutory language repealed in 2014 budget
Portion of corporate tax set aside – Redirected to school operations – County loss = $75 m/year – Statutory set aside repealed in 2014 tax
simplification
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COUNTY SCHOOL FUNDING
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County Primary Responsibilities
Boards of County Commissioners: Act as local taxing authority Review entire school budget Approve county appropriations for current expense
and capital outlay Approve 5-Year School Facilities Needs Survey Approve purchase price of school building sites Issue bonds & arrange other financing for school
capital outlay purposes Require merger of multiple units if desired
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Current Expense Only
State Avg. = $1893
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County funds are used to fund what school employees?
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Teacher Asst. & Other Non-Certified
Teachers Administrators Other Certified
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County Funding of School Personnel, 2011
010,00020,00030,00040,00050,00060,00070,00080,00090,000
100,000
Administrators Teachers Other Certified Assts & Other
State Federal CountyFull-time only
1,606 of 6,785
4,153 of 93,964
2,858 of 14,227
17,769 of 60,654
24% 4% 20% 29%
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Considering State Salary Supplements
106 LEAs have teacher supplements – Low of $147 to high of $6,031 annually – State wtd avg = $3,478; county cost = $348 million
108 have principal supplements – Low of $175 to high of $28,673 annually – State wtd avg = $11,338; county cost = $27 million
Total county cost supplements = $430 million
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City Schools Receive City Funding?
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False
True
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Funding of “City” Schools
No role of cities in school funding – Always an exception: Thomasville approves supplemental tax
County appropriation to current expense apportioned to multiple LEAs based on ADM (G.S. 115C-430)
County appropriation to capital based on LEA need
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Counties Fund Public Schools but not Charter Schools?
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False
True
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Funding of Charter Schools
County current expense appropriation shared with charter school indirectly
– LEA must transfer to charter per pupil current expense appropriation for students residing within jurisdiction (includes other local funds too)
County appropriation to capital not shared with charter
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Counties’ Use of Funding Formulas
Statewide Average Model – Formula that sets goals based on a statewide ADM expenditure
or some percentile
Modified Statewide Average Model – Same calculation above, but excludes highest & lowest
Benchmarking Model – Similar counties selected on pop., tax base, adm, per capita
income, sales tax revenues, & Medicaid – ADM expenditures of similar counties used to set funding goals
in benchmarking county
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Counties’ Use of Funding Formulas
Inflation Model – ADM expenditure is adjusted by new student population &
inflation factor –e.g. CPI
Snapshot Model – Boards take snapshot at specific time, usually revaluation, &
determines portion of county’s overall revenue used for schools – Portion used in following years with school expenditures growing
as overall revenue expands
Tax Base Growth Model – Percent of tax base appropriated to schools is calculated – Resulting percent applied to tax base growth in given year
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Budgeting Resources
DPI Statistical Profile—student population, teacher characteristics, and finances – http://www.ncpublicschools.org/fbs/resources/data/
DPI School Report Card—performance measurements by school – http://abcs.ncpublicschools.org/abcs/
DPI School Clearinghouse—access to lottery & ADM funds, school prototypes – http://www.schoolclearinghouse.org/
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Questions, Comments