Alabama Educational Technology Association

Fall Symposium

September 26-29, 2010FY 2011 – FY2012

Financial UpdateDeputy State Superintendent, Craig Pouncey

What Have We Dealt With Over The Last Two Years?

Reduced State Funding -$1,406,674,138Reduced Local Funding30+ New Superintendents(Not To Mention Board Members)4 New Stimulus Fund Types$0 State Technology Funds

Continued…

New Reporting Obligations Accounting Software Conversions (Next

Gen)

Student Software Conversions (INOW)

Month to Month Uncertainties of available funds

Sept 30th – How Will We End? Oct 1st – How Will We Start?

We All Have Been Through It!

FY 2012→FY 2009

$460 million Required

“Challenges Ahead”

No ARRA Title I: $ 80 million No ARRA IDEA: $ 90 million No SFSF: $179 million Minimum Payment $110 million

for “Rainy Day Fund”

No Jobs Funds $150 million No ARRA EETT $ 10 million

FY 2012

$619 million

Needed to Replace Federal Dollars & Make Payment

11% Growth Needed

$1.07 Billion Total

19.8% Growth in Receipts

HISTORY OF EDUCATION TRUST FUND RECEIPTS

TOTALFiscal ETF PERCENTAGEYear RECEIPTS GROWTH

2000 4,114,571,877 5.19%2001 4,015,374,184 -2.41%2002 4,133,348,664 2.94%2003* 4,069,962,120 -1.53%2004 4,456,026,869 9.49%2005 4,969,255,238 11.52%2006 5,498,361,937 0.65%2007 5,854,027,193 6.47%2008* 5,943,258,156 1.52%2009**5,707,308,868 3.97%2010 5,726,000,000 0.33%

*FY 08 Excludes repayment of $32M and Proration Prevention Acct transfer of $439,372,515

**FY 09 After 11% Proration

It Ain’t Gonna Happen!

Other Alabama Factors To Consider:

4.7%

5.8% 6.0%5.5% 5.8%

9.7%9.9%9.7%9.7%7.6% 9.5% 9.5%9.7%

5.1%4.6% 4.6%

4.7%

11.0%11.1%

10.3% 9.7%

3.9%3.6%

3.5%

10.7%11.1%

5.4% 5.5%5.1%

10.1%

5.1%

11.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2001

2002

2003

2004

2005

2006

2007

2008

2009 JA

NFEB

MAR

APRM

AYJU

NJU

L

Year and Month

Percent

US Unemployment RateAL Unemployment Rate

July Unemployment by County

APSCA Debt Service Payable from Sales Tax

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029Fiscal Years

As of May 2010

As of May 2010

PACT Funding from Act 2010-725

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029Fiscal Years

PACT from General ETF

PACT from Higher Ed. 30% Share of ETF

PACT from Sales Tax

APSCA from Sales Tax

Ratio of ETF Appropriations for K-12 To Higher Education, FY 1970 to FY 2011

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

1970 1975 1980 1985 1990 1995 2000 2005 2010Fiscal Years

PEEHIPAmount

Estimated Cost Increase for FY 2011 $255,000,000Cost Containment Savings

New Prescription Carrier $48,000,000Optional Plan Changes $5,000,000Prescription Drug Changes $33,000,000Eliminate Combining Allocations $6,200,000Premium Rate Changes $53,400,000Medical Plan Changes $40,540,000

Subtotal $186,140,000New Revenues

From Tobacco Penalty $8,860,000From Constitutional Reserve $60,000,000

Subtotal $68,860,000

Ending Balance $0

Funding PEEHIP for FY 2011Funding Provisions

Note: Some expenses funded from non-ETF sources

PEEHIP Expenses Budgeted FY 2011 $1,343,778,191Assume Rate of Medical Inflation 7.00%Inflation Adjustment for FY 2012 $94,064,473Number of Months 12.00 Cost Increase Per Month $7,838,706Assume Number of Active Employees 104,000.00 Estimated Cost per Active Employee $75.37Budgeted Cost FY 2011 $752.00Estimated FY 2012 Cost per Active $827.37

ESTIMATED PEEHIP COST FOR FY 2012

ETF Growth Projected for FY 2011

101112

13141516

1718

S T U

Category Amount % ChangeBase Forward from FY 2010 5,326,190,270$ n/aProjected Growth 63,279,521$ 1.19%Kimberly Clark Settlement 34,000,000$ 0.64%DOR Enhancements 30,000,000$ 0.56%IRS rule on Tax Preparers 10,000,000$ 0.19%APSCA Bond Issue 32,302,687$ 0.61%

Total 5,495,772,478$ 3.18%

FY 2010-2011

What Are Our Options?

New Taxes Working the Split Modify the Model

As bad as it may seem…

The sun is going to come up tomorrow!

“Continue to Collaborate”

With Your Office Within Your District Within Your Association

Teach people to work smarter› Technology is the only means by which we

can hope to do more with less

Learn to provide support and training from a distance.› No longer do we have to be there to get it

done

Stay current with E-Rate› (It may be the only means you will have to

make improvements)

Become an integral part of entitlement programs› (Federal funds aren’t prorated)

THANK YOU!