Georgia Education Budget Primer Stephen J. Owens, Ph.D. Georgia Budget & Policy Institute

K-12 EDUCATION BUDGETED $9.9 BILLION FOR FY2019 Overview: K-12 Education funding makes up 40.2% of the state’s budget Department of Education - $9.9 billion $624 million increase for education from the General Fund More than half of funding growth will shore up retirement benefits

Fully-funded QBE -The Quality Basic Education Act determines education funding -Fully funded for the first time since 2002

Funding increase -Increased enrollment and shoring up retirement -Removing austerity cuts

Shifting goalposts -2009 – Equalization decline, then law change -2012 – Georgia lawmakers ended their contribution to the cost of health insurance for non-teaching staff

Equalization Amount of Additional Money Each School District Would Receive Per Student if State Restored Equalization to 75th Percentile

School-level expenditures HB 139 Cost of all materials, equipment, and other non-staff support Salary and benefit expenditures for all staff Annual cost of all professional development, including training, materials, and tuition provided for instructional staff Total cost of facility maintenance and small capital projects Spending for new construction or major renovation, based on the school system facility plan

Teacher pay raises

Pay raise considerations Local Control Incremental Steps Impact on Pre-K Teaching Profession How to Pay for it

Tax-credit vouchers Qualified Education Expense Tax Credit Dollar for dollar tax credit Student Scholarship Organizations as pass-though Average scholarship: $3,777 More unknowns than knowns Impact of SALT changes

GBPI on the issues Beyond Basic Education: Five Ways for Georgia to Fund Schools Fairly (available online) Teacher Raise Fact Sheet (provided) State and Local Tax Deduction Changes Effect on Qualified Education Expense Tax Credit (forthcoming)