ERC Funding Recommendations Georgia Budget & Policy Institute Claire Suggs, Senior Education Policy Analyst Budget Overview | www.gbpi.org

Education Funding Landscape THE QUALITY BASIC EDUCATION FORMULA IS UNDERFUNDED BY $1 BILLION IN BOTH THE 2013 AND 2014 FISCAL YEARS Total Austerity cuts 2003 through 2014 equals $6.7 billion.

Education Funding Landscape $1.5 billion increase FY 2015 to FY 2017 Over 90% went to three items: Partial restoration of austerity cut Student enrollment growth & routine teacher salary adjustments Rising retirement costs

Austerity Reduction Undermined No state funding for health insurance for bus drivers & other non-certified employees since 2012 $400 million cost increase for districts Another increase on January 1

Austerity Reduction Undermined Falling state funding for student transportation despite rising costs. Districts spent $385 million in FY 2000 & state contributed $152 million or 39% Districts spent $823 million in FY 2016 & state contributed $127 million or 16%

Programs Eliminated Graduation coaches Academic coaches Mentor teachers National Board Certification salary enhancements Classroom supply cards

Georgia’s a Low-Spender 38th nationally in per student funding Spends $1,800 less than the national average Earned an “F” on spending from EdWeek

Proposed Funding Formula: Benefits Better alignment with changing educational practices Allows flexible use of state funds

Proposed Funding Formula: Flaws Not based on a cost assessment Funding level set by 31-year-old QBE formula Not aligned with current student performance goals Doesn’t include an inflation adjustment Eliminates annual salary adjustment for teachers Future adjustments depend on legislature’s whims

Proposed Funding Formula: Flaws Shortchanges low-income students New criteria causes decline in percent of identified low-income students, 63% to 35% Low supplemental award = $1.29 per day Shifts transportation funding from grant to per student funding Disadvantages rural districts and others with high transportation costs Makes current underfunding permanent

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