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

2. 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.

3. 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

4. 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

5. 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%

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

7. 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

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

9. 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

10. 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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Claire Suggs, Senior Policy Analyst
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