Ensuring Success For Each Student

FY14 TENTATIVE BUDGET

OPERATING BUDGET

2010 - $317 million (6 furlough days)

2011 - $284 million (8 &10 furlough days)

2012 - $296 million (3 & 5 furlough days)

2013 - $293 million (0 furlough days)

2014 - $293 million (5 & 6 furlough days)

Financial Services

(5 Year History)

SIGNIFICANT CHALLENGES

State Revenue – austerity reductions (2003-2014)

Local Tax Digest – decline in revenue (2009-2012)

Technology – QBE does not fund K-12

Rising Employer Costs –

1) Health Care Costs for Classified Employees

2) Contribution to Teachers Retirement System of

Georgia

Transportation Funding

Financial Services

STATE AUSTERITY REDUCTIONS

Financial Services

Total $182,324,928

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

TAX DIGEST HISTORY

Financial Services

Calendar Year Increase /-Decrease

2013 (projected) 0%

2012 -12.02%

2011 -6.57%

2010 -15.3%

2009 -1.97%

2008 8.24%

2007 10.25%

2006 10.19%

2005 10.11%

2004 9.33%

Note: Property tax revenue declined $42 million from 2009-2012.

TAX DIGEST

Financial Services

$-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Value of One Mill Property Tax (M&O)

$ M

illio

ns

PROPERTY TAX WEALTH PER PUPIL

Financial Services

District Rank

Atlanta City 5

Chatham County 12

Fulton County 18

Forsyth County 36

Cobb County 38

Dekalb County 48

Cherokee County 61

Gwinnett County 101

Henry County 112 (#116 prior year)

Clayton County 139

Note: 180 districts reporting - #1 is wealthiest

Source: Georgia Department of Education

(10 Largest Districts)

TEACHERS RETIREMENT SYSTEM (TRS)

Financial Services

Employee Rate Employer Rate

FY2014 6.00% 12.28%

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 ($1.5 million for FY2014)

EMPLOYER HEALTH INSURANCE COSTS

CLASSIFIED EMPLOYEES

Financial Services

Employer Cost

Per Employee

Per Month

Employer

Total Cost

Annual

FY2012 $ 296 $ 4,649,155

FY2013 $ 446 $ 7,003,555

FY2014 $ 596 $ 7,988,784

FY2015 $ 746 $ 9,999,384

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

2005 2006 2007 2008 2009 2010 2011 2012

Expenditures

State Funding

2013 2014

FY14 OPERATING

REVENUE/EXPENSE

Financial Services

Revenue $280,914,532

Expense $292,856,267

Reserves to Balance Budget $ 11,941,735

REVENUE ASSUMPTIONS

Financial Services

No change in local tax digest

State austerity reduction FY2014 ($26.4 million)

State Revenue-Equalization Grant ($19 million)

Georgia attempts to equalize the inequities

in property wealth per student that exist in the

state…FY13 ($23 million)

REVENUE

Financial Services

Local

34%

State

65%

Federal

1%

FY14 STATE REVENUE (QBE)

Financial Services

QBE Earnings $218,354,901

Local Fair Share $ -31,672,359

Austerity Reduction $ -26,379,325

Equalization $ 18,862,432

Nursing $ 754,295

Transportation $ 1,439,773

Total Earnings $181,359,717

(Projected)

Note: State funding 2012-13 was $187,145,173

EXPENDITURE ASSUMPTIONS

Financial Services

5 furlough days for most employees(6 furlough days for administrators)

Outsource custodial services

Freeze salaries for all employees (5th consecutive year)

TRS based on actual salary received

School funding $44 per student ($50 per student FY13)

Additional Staffing:

6 Gifted Teachers

4 SPED Teachers

1 Counselor (Academy for Advanced Studies)

2 School Resource Officers Full-Time

2 School Resource Officers Part-Time

2 Impact Academy Teachers

FY2014 GENERAL FUND

EXPENDITURES $293 MILLION

Financial Services

Business

Services/General

Administration

1%

Student

Transportation

5% School

Administration

7% Central Support

Services

7%

Maintenance/

Operations

10%

Instruction

70%

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

Dekalb

County

Chatham

County

Fulton

County

State

Average

Cobb

County

Gwinnett

County

Cherokee

County

Henry

County

Clayton

County

Forsyth

County

FY12 Expenditures Per Student Comparison

(10 Largest Districts)

$7,667 $8,594

Source: GDOE Financial Data Collection System http://app.doe.k12.ga.us (includes Federal Programs)

* Ranks #155…180 Districts Reporting.

GENERAL ADMINISTRATION EXPENDITURES

Financial Services

School System FTE 2012

(Students)

Gen. Admin. Exp.

Per Student

Rank

Atlanta Public 49,217 $ 2,330 1

Gwinnett 164,455 $ 543 35

State Average 8,585 $ 413

DeKalb 97,297 $ 411 71

Fulton 91,682 $ 397 75

Chatham 34,523 $ 394 77

Clayton 51,052 $ 335 109

Cobb 108,496 $ 285 142

Forsyth 37,518 $ 226 161

Cherokee 38,679 $ 197 170

Henry 39,973 $ 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.

(Excludes Charter Schools)

PER STUDENT EXPENDITURE

Financial Services

39,802 Students

$7,358

Note: Amount represents annual operating expenses only.

EXPENDITURES

Financial Services

Other

Expenditures

12%

Salaries &

Benefits

88%

SALARIES AND BENEFITS

Financial Services

Facilities &

Maintenance

$7.2 million

(2.8%) General

Administration

$7.5 million

(2.9%)

Transportation

$9.8 million

(3.8%)

School Positions

$233 million

(90.5%)

Total

Salaries / Benefits

$257.5 million

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

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.

SUMMARY

Financial Services

Direct instruction budget 70%

State austerity reduction ($26 million)

Equalization grant ($19 million…decrease $4 million)

Tax digest (same as FY13)

88% budget employee salaries/benefits

Employees will not receive a salary increase

Furlough days (5 for most employees, 6 for administrators)

Rising employer benefit costs (TRS and Health Insurance)

Balance budget with cash reserves ($12 million)