1. Education Funding Overview Budget Overview | www.gbpi.org Georgia Budget & Policy Institute Claire Suggs, Senior Education Policy Analyst May 9, 2014

2. Budget Overview | www.gbpi.org Who We Are The 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.

3. FY 2014 State General & Motor Fuel Funds Budget ($18.8 billion) State Funding 51.5% Education 51.5% Education Other 27.6% State funding per student has declined 15.3 percent The percent of economically disadvantaged students climbed from 45 to 60 percent. Since 2002 in Georgia:

4. Shifting responsibility for K-12 funding: Georgia SOURCE: Georgia Department of Education

5. K-12 Formula Underfunded by $1 Billion in 2014

6. FY 2014 State General & Motor Fuel Funds Budget ($18.8 billion) Local Funding 51.5% Education 51.5% Education Other 27.6% Tax digest fell 17.3 percent between 2008 and 2012. Local revenue per student fell by 5.8 percent. Between 2008 and 2012 :

7. FY 2014 State General & Motor Fuel Funds Budget ($18.8 billion) Impact of Funding Losses 51.5% Education 51.5% Education Other 27.6% 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

8. FY 2014 State General & Motor Fuel Funds Budget ($18.8 billion) Impact of Funding Losses 51.5% Education 51.5% Education Other 27.6%

9. FY 2014 State General & Motor Fuel Funds Budget ($18.8 billion) FY 2015 Budget ($19.9 Billion)

10. Revenue Sources

11. Georgia Revenue by the Numbers 49 th State tax revenue per person (2012) 46 th State tax revenue as percentage of income (2012) 46 th State and local tax revenue per capita (2011)

12. Georgia’s Revenue at Historic Low Revenues as a Percentage of Income (FY 1989 – FY 2013) 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

13. FY 2014 State General & Motor Fuel Funds Budget ($18.8 billion) Revenues Finally Surpass 2007 Levels General and Motor Fuel Funds 2007-2015 Fiscal Years

14. FY 2014 State General & Motor Fuel Funds Budget ($18.8 billion) Per Capita Revenues Still below 2007 $2,011 $1,968 $1,741 $1,566 $1,688 $1,742 $1,831 $1,879 $1,944

15. Budget Growth in FY 2015 ($928 Million) $314 Million $151 Million $173 Million $142 Million $51 Million $34 Million Partial Restoration K-12 Formula Cut K-12 and University System Formula Growth Medicaid and PeachCare Growth Teacher and Employees Retirement State Employee Salary Increase 0 0 0 0 0 Department of Justice Settlement Agreement 0

16. Total QBE Funding FY 2015 ($514 Million) $480 Million $29 Million $5 Million QBE QBE Local 5 Mill Share QBE Equalization 0 0 0

17. 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

18. K-12 Formula Underfunded by $750 Million in 2015

19. LET’S STAY CONNECTED Please sign up for our electronic email alerts on our website, like us on Facebook and follow us on Twitter. Claire Suggs, Senior Policy Analyst csuggs@gbpi.org www.gbpi.org www.facebook.com/gabudget @gabudget @clairevsuggs