Education FundingOverview

Budget Overview | www.gbpi.org

PAGE: Your Reality-Your VoiceEducating the Changing Faces of GeorgiaClaire Suggs, Senior Education Policy Analyst

Budget Overview | www.gbpi.org

Who We AreThe 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

Our Policy Area Focus

TaxesBudgetEducationHealth CareEconomic SecurityEconomic Development

State Funding

51.5%Education

51.5%Education

OtherOther27.6%State funding per student has declined 12 percent in

inflation-adjusted dollars

Since 2002 in Georgia:

Districts with Largest Decline in State Funding

51.5%Education

51.5%Education

OtherOther27.6%

District % Change in State Funding per FTEFY 2002-2015

% Free & Reduced Lunch Students

1. Greene County -57.6% 98.6%

2. Montgomery County -33.4% 53.3%

3. Putnam County -32.7% 78.3%

4. Randolph County -32.5% 91.4%

5. Baldwin County -31.9% 79.1%

6. Dublin City -31.9% 85.1%

7. Rabun County -31.1% 68.1%

8. Fannin County -30.4% 64.1%

9. Towns County -29.4% 57.6%

10. McIntosh County -29.4% 84.0%

Shifting responsibility for K-12 funding

State56%

Local38%

Federal6%

State of Georgia: Funding sources for K-12 educa-

tion, FY2002

SOURCE: Georgia Department of Education

State51%Local

41%

Federal8%

State of Georgia:Funding Sources for K-12 Educa-

tion, FY 2013

K-12 Formula Underfunded by $746 Million in 2015

Districts with Largest Austerity Cut per FTE

51.5%Education

51.5%Education

OtherOther27.6%

District % Change in State Funding per FTEFY 2002-2015

% Free & Reduced Lunch Students

1. Taliaferro County -$621 93.6%

2. Trion City -$594 43.9%

3. Quitman County -$577 99.1%

4. Atkinson County -$572 85.0%

5. Pelham City -$571 92.1%

6. Clay County -$558 98.0%

7. Madison County -$556 62.3%

8. Bacon County -$549 68.0%

9. Floyd County -$546 59.3%

10. Webster County -$544 81.0%

Rising Number of Students in Poverty

2002 2004 2006 2008 2010 2012 201330

35

40

45

50

55

60

65

44.2446.4

49.7650.98

56.06

59.7562.16

Percent of Students Participating in Free & Reduced Lunch Program

Poor Students Struggle in School

8th Grade Reading 8th Grade Math

2017

48 47

Fewer Low-Income Students Reach Proficiency2013 NAEP Exam

Free & Reduced Lunch Students Non-FRL Students

Poor Students Struggle in School

Economically Disadvantaged Students

All Students

63.4

71.5

2013 High School Graduation Rate

How Poverty Limits Learning

51.5%Education

51.5%Education

OtherOther27.6%

• Hunger

• Health

• School Readiness

• Parenting

• Toxic Stress

How Poverty Limits Learning: Hunger

51.5%Education

51.5%Education

OtherOther27.6%

Georgia Nation

28.1

21.6

Percent of Children Who are Food Insecure

How Poverty Limits Learning: Health

51.5%Education

51.5%Education

OtherOther27.6%

Children in poverty have

• Poorer vision

• Higher rates of iron-deficiency anemia

• Greater incidence of asthma due to increased exposure to environmental toxins and smoke

• Less access to routine pediatric care and more likely to be hospitalized

How Poverty Limits Learning: School Readiness

51.5%Education

51.5%Education

OtherOther27.6%

Children in poverty

• Know fewer words

• Are read to less frequently

• Are more likely to attend low-quality daycare

• Less likely to play outside and spend more time watching TV

How Poverty Limits Learning: Parenting

51.5%Education

51.5%Education

OtherOther27.6%

Parents in poverty

• More likely to work longer hours and odd hours

• Are more likely to be depressed

• Less likely to know how to best support children’s academic success

How Poverty Limits Learning: Toxic Stress

51.5%Education

51.5%Education

OtherOther27.6%

Children who have experienced toxic stress show deficits in

• Language

• Long-term memory

• Working memory

• Executive control

Local Funding

51.5%Education

51.5%Education

OtherOther27.6% Tax digest fell in nearly 90% of districts by an

average of 21.7% in inflation-adjusted dollars.

135 districts raised millage rates

Local revenues fell in 89 districts by an average of 20%; these districts enroll nearly 80% of all students

Between 2008 and 2013:

Impact of Funding Losses: FY 2014

51.5%Education

51.5%Education

OtherOther27.6%

71 percent of responding districts cut the school year

95 percent increased class size

About 70 percent have eliminated instructional support positions

Nearly 80 percent have cut central office staff

82 percent are using reserve funds this year

Impact of Funding Losses: FY 2014

51.5%Education

51.5%Education

OtherOther27.6%

0%

10%

20%

30%

40%

50%

60%

70%

38%42%

62%

26%

Percent of Districts Reducing Programs

FY 2015 Budget ($19.9 Billion)

Revenue Sources

Georgia Revenue by the Numbers

49th State tax revenue per person (2012)

46th State tax revenue as percentage of income (2012)

46th State and local tax revenue per capita (2011)

FY 1989

FY 1991

FY 1993

FY 1995

FY 1997

FY 1999

FY 2001

FY 2003

FY 2005

FY 2007

FY 2009

FY 2011

FY 2013

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

6.0%

6.3%6.0%

5.6%

6.0%

5.9%

6.0%

6.0%

6.0%

5.8%

5.9%5.9%

6.0%

5.6%

5.3%

5.3%

5.4%

5.6%

5.7%

5.5%

5.1%

4.5%

4.6%

4.7%

4.7%

6.0%1989

5.3%2003

4.6%2010

Georgia Revenue as a Percentage of Income at Historic Low

4.7%2014

5.7%2007

Revenues as a Percentage of Income Fiscal Years 1989 – 2014

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

Per Capita Revenues Still below 2007

$2,011 $1,968

$1,741

$1,566

$1,688 $1,742$1,831

$1,879 $1,944

Total QBE Funding FY 2015 ($514 Million)

$480 Million $29 Million $5 Million

QBE

QBE Local 5 Mill Share

QBE Equalization

0

0

0

QBE Funding FY 2015 ($480 Million)

$314 Million $100 Million $57 Million $9 Million

Partial Restoration K-12 Formula Cut

Formula Growth (Enrollment and T&E)

Teacher Retirement System

Other

0

0

0

0

Money Matters

What the research tells us:

Increased funding improves student achievement: e.g. MA, NJ, MI, TX

Effect varies—how the money is spent matters

How Squeezed Are You?

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Claire Suggs, Senior Policy Analystcsuggs@gbpi.org

www.gbpi.org

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