GSBA Finance Kit

GSBA Finance Kit

A 30-45 minute presentation to assist in communicating the challenges facing districts in balancing their budgets. This presentation may be used with community and employee groups. The central message is that the world has changed, teaching and learning needs have changed. Public schools have been asked to do more than ever, but funding has not kept pace. With continued cuts in state funding and shrinking local property digests, districts have been forced to make deep cuts over the past several years. It’s time to have dialogue about what the community sees as priorities for balancing the budget.

Instructions:

1.Contact GSBA Communications Department at 770-962-2985 to request the PowerPoint.2.Download the PowerPoint presentation to your computer.3.There are numerous places within the presentation to customize the information for your district.4.Recommended handouts for your meetings include: a detailed list of all cuts made to staff, salaries and/or programs over the past several years; a pie chart that shows the distribution of revenue in the district (there is also a slide in the presentation that does this); an explanation of unfunded programs and services the district provides with local funds.5.Please feel free to customize the presentation as needed for your district.6.If you have any trouble with the PowerPoint, please contact the GSBA Communications Department at 770-962-2985.

Options for Communicating About the Budget

Given that most people outside of administration and the board of education don’t understand how complex school finance is, it is important to inform employees, civic leaders and the community about the challenges faced in financing public education. It is not important to overwhelm them with numbers or legal citations, or try to make them experts in school finance. It is important that there is general understanding and that common ground is sought on those issues that affect the community.

Possibilities:1.Create a local leadership coalition made up of school and community leaders that represent all stakeholder groups. You can use this presentation to help explain the local funding challenges. Meet (in person or via electronic means) with them throughout the budgeting process to keep them informed. Ask for their assistance in informing their stakeholder group.2.Present the information at staff meetings throughout the district and ask employees to send input on what their priorities are for balancing the budget.3.Present the information at civic group meetings such as the chamber, Rotary, etc.4.Hold community conversations for stakeholder groups. (GSBA can assist with this!) The goal is to gather input to assist the board in making decisions that reflect what the community feels is important. Ask your leadership coalition to assist with the planning: where and when to hold the meeting. Also ask their assistance in recruiting stakeholders to come to the meeting. Present the information in a large group setting and then break up participants into groups of about 10-15 people. Have neutral facilitators lead the discussion. Record thoughts on flip chart paper. Sample questions: 1) What are the strengths of the district that we are proud of and want to preserve?; 2) What are the challenges (in addition to financial)? 3) What are your priorities for balancing the district’s budget? Compile results and report at a regular board meeting.

Preparing Students for the Challenges of Tomorrow: We Can’t Do It Without You!

What We’ll Cover…

The world has changed and public schools are asked to do more and more.

Education plays a significant role in our economy.

___________ County students are showing gains. ___________ County’s revenue picture shows

declining state funds. We have significant funding challenges. We are looking for solutions.

It’s a Different World for Kids

+ Email is too slow for them

+ They don’t fear Russia

+ Their blackboards are Smartboards

+ They’ve never seen a Sears catalog or a phone book

+ They know Clint Eastwood as a sensitive director…not Dirty Harry

We Are Asked to Do More

From 1910 to 1950 – schools added P.E. and football, Vocational Schools, mandated transportation, ½ day kindergarten, fine arts, school lunch programs, driver’s ed, sex ed

In the 60s and 70s – Advanced Placement, adult ed, career ed, federally mandated special ed, drug programs, Title IX programs, school breakfast programs

…and More In the 80s– mandated child abuse

monitoring, bi-lingual education, full day kindergarten, after school programs, expanded health and psychological services

In the 90s – America 2000 (Republicans), Goals 2000 (Democrats), technology use, expanded gifted ed, at-risk and drop out prevention

And in the 2000s – No Child Left Behind (Republicans), Race to the Top (Democrats), body mass monitoring, and much more…

Lately, we’ve been told…

New Common Core Curriculum (national curriculum) will be phased in over the next three years

National assessments will begin in 2014-15

Career pathways will be required of all students for graduation

New teacher and leader evaluation (TKES/ LKES) instruments will require more time and personnel to implement

With Common Core Curriculum

We’ll need quality professional learning for staff so teachers are ready to teach the Common Core Curriculum and have strategies to promote higher order thinking.

Teachers need new assessment tools for the Common Core to make sure kids are learning the new curriculum.

New intervention and support services for students will be needed.

And Yet…

Public schools are facing major economical funding cuts from the state right down to the local level.

The Role of Education in our Economy

Without an education, our children won’t be able to find and keep good jobs.

4.2%

8.3%

9.1%

GPEE, Economics In Education, 2013

The Role of Education in our Economy

Our local economy cannot thrive if its citizens can only get the lowest paying jobs. $38,01

2

$33,072

$23,868

GPEE, Economics In Education, 2013

_________ County Figures

Unemployment rate: ______% (2012) _____% of adults have high school

diplomas ____% have college degrees or

higher Current graduation rate for ____: __

% (approximately __% did not graduate)

Our Economy is Tied to Education

Counties with a large percentage of their populations without at least a high school diploma will find it extremely difficult to attract businesses and sustain a healthy economy.Georgia Partnership for Excellence in

Education, 2012

A Snapshot of Our District

_______ County Schools educates _____ students.

We spend an average of $______ per student, which is _________ than most districts our size.

There are ___ public schools in ______ County. (_____ elementary, _____ middle school and ___ high school)

All of our schools are accredited by the Southern Association of Colleges and Schools (SACS).

CRCT Scores for Grades 3-8

Customize for your district.

________ Graduation Rate Trend


Federal Funds = XX%State Funds = XX%Local Funds = XX%Enrollment = X,XXX

*According to the Georgia Department of Education website.

2013

How Our Schools are Funded…


Federal Funding

Federal funds can’t be used on expenditures funded by state or local funds in previous years.

Federal expenditures are funded on a reimbursable basis — you must spend it to get it.


State Funding State funds make up __% of _______ County

Schools’ funding. The state’s education funding formula is based

on a 1985 law, the Quality Basic Education Act. (QBE)

A smaller portion of state revenue comes from state grants for specific purposes such as Career Tech, Ag programs and pre-school services.

90% of the QBE funds are allocated based on student enrollment and 10% is based on the number and size of our schools.


QBE QBE was adopted in 1985 and is the

basis for the “formula” used to allocate funds through a partnership between the state and local districts.

The law is intended to ensure each student in the state receives a quality basic education—not a “Cadillac,” but a “Chevy.”

The state pays districts an amount of money for each student based on a QBE “foundation formula.”

Austerity Cuts to _____ County Lost QBE funding

2013 Cut by $_______ 2012 Cut by $_______ 2011 Cut by $_________ 20010 Cut by $__________ 2009 Cut by $__________ 2008 Cut by $_________ 2007 Cut by $__________ 2006 Cut by $ Since 2003 total cuts of $_________


What Underfunded Mandates Mean

For ________ County Schools… Just a couple of examples:

________ County paid 69% of the overall cost of transporting students last year and 100% of the cost of transporting students living within 1.5 miles of a school.

Local districts must provide educators with 12.5 sick days/year, but the state pays only $150 per employee/per year. After the $150, any cost for substitutes, etc. is paid by the local district. Subs are paid a minim of $65/day.


What QBE Does Not Provide Any Funds for……

Social security costs (6.2% of taxable salary) and workers’ compensation

Athletics Other extra-curricular activities

(band, drama, student organizations, etc.)

Capital expenditures (new buildings, new technology, furniture)


Ruth O'Dell

Over the past 10 years in Georgia, school funding has been cut by $7 billion.

Districts are having to furlough staff and, in some cases, cut the number of school days in order to balance their budgets.

The economic climate is hurting the amount districts collect from SPLOST funds.

Revenue sources are severely limited.

_________ is Not Alone


Local Funding

Property taxes are the primary source (over 90%) of local revenue for local school systems. These funds are used for the operating budget. All property is taxed, even rental properties.

Property taxes are based on the county millage rate adopted the Board of Education annually. By state law, millage rates are capped at 20 mills, except in a few rare circumstances.


_________ County School Tax

+ _________ County’s millage rate has remained the same (_______) since 2009.

+ School property tax levy has decreased by $________ since 2007.


SPLOST

Special Purpose Local Option Sales Tax (SPLOST) funds can be used for capital expenditures like buildings and technology, but NOT for salaries and other operating expenses.

SPLOST is approved by the county voters every five years. Projects are outlined ahead of time and cannot be changed after approval by voters.

How funds are used in ___________ County…..Customize for your district.

FY 12 Budget SummaryFunds 100-499 State, Local and Federal Regular

Operating Accounts

RevenueState $17,035,838

Federal $ 3,059,212

Local $ 9,064,362

Total revenue $29,159,412Expenditures

Salary $19,477,041

Benefits $ 6,957,776

Other $ 4,202,609

Total Expense $30,637,426


Response to Financial Challenges

2009: Raised millage 2.25 mills (12.62 to

14.87) Cut $1,040,135

2010 Rolled back millage to 14.668 Continued cuts from 2008

2011 Millage remains at 14.668 Continued cuts from previous years Cut additional $1,666,384


Response to Financial Challenges



Cumulative savings since 2009: $8,601,294


General Fund Balance

Beginning Balance, July 1, 2013, was $3,005,533

Projected ending fund balance on June 30, 2014, is $1,809,300

Projected ending fund balance on June 30, 2014, if no adjustments are made to revenues or expenditures will be $210,493

Minimal fund balance to operate is about $1,314,600 (5% of revenues)


Our Local Challenges

The “funding cliff” has arrived…. Significant state cuts (austerity cuts) will

remain in place. Our tax digest has decreased and the result

is reduced local revenues. Our equalization grant has been cut by over

$1 million. Employee benefit costs are increasing

significantly.


We have been cutting programs, positions and operations since Fy2008.

Staff pay has been cut every year since 2008 Pioneer Regional Educational Services

Agency’s salary study shows us significantly behind the pay scales of surrounding districts.

Lack of funds will prevent us from moving forward in student achievement, teacher/leader quality, and addressing the graduation rate. (75%)

Our Local Challenges


Strategies and Solutions

Revenue: The only way to increase local revenue is by raising the millage rate or charging of services that are legally allowable. (not many of these!)

Expenditures: We will have to cut further into our core business: teaching and learning.


Increase Class Sizes (Means Cutting Teachers) Reduce or change student and staff support

services such as nursing, professional learning, and assistance to students who struggle or who are high achievers

Eliminate programs: Electives, Athletics, for example

Reduce school days further Reduce or change operational support

provided such as transportation service, technology, facility care and maintenance.

Strategies and SolutionsExpenditures


Our Budget Process

We are seeking input from the community and our employees to begin the process.

The board and superintendent set the vision and use input from the community and employees to set priorities for the district’s educational program.

The Budget Committee develops a proposed budget and some specific recommendations and sends to the Board for review.


The Budget Process Continues

Funds are allocated based on state and federal mandates, the state salary schedule and the district’s strategic plan.

The local property tax millage rate is established to generate revenue to fund what the state or federal funds do not provide.

The Board must operate under a balanced budget. Adjustments to the proposed budget have to be made if available revenues and an adequate remaining fund balance do not cover expenses.

The Board must approve a budget by July 1, the start of the fiscal year, or pass a temporary spending resolution.


We Need Your Best Thinking

We want to hear from you on what you believe should be the priorities for _________ County Schools.

These challenges are real. The Board of Education needs your input to help them make the tough decisions.

Our kids and our community deserve no less.


Our Process for Engagement

We will break in to small groups of about 8 to 10 people.

Each group will have a trained, neutral facilitator who is not an employee of the district.

Each group will consider four questions about the future of our school district.


Each group will follow a set of ground rules, for example: Every person gets a chance to talk Every person is treated with

respect It’s okay to disagree, but do so

with respect Seek first to understand and then

to be understood

Our Process for Engagement


Thank you for your time!The Board values your input and will use it to

assist them in making a decision that reflects the

_________ County Community.

GSBA Finance Kit

Documents

Transcript of GSBA Finance Kit