1. Crawford County School System Budget Discussions Aug 28, 2013

2. Outline Funding Source Overview Negative Impacts to School Budget Steps Taken Prior to FY14 FY14 Budget Cycle

3. Funding for School Systems FY 2002 Federal Funds = 5.6% State Funds = 56% Local Funds = 38.4% FY 2012 Federal Funds = 8.8% State Funds = 49.5% Local Funds = 41.7% 3 * Information from New Board Member Training, GSBA, Nov 2012

4. Funding for School Systems Local Funds Primarily Ad valorem taxes Special Purpose Local Option Sales Tax (SPLOST) For Capital outlay projects for educational purposes (Not for General Fund use) 4 * Information from New Board Member Training, GSBA, Nov 2012

5. Funding for School Systems State Funds QBE, Quality Based Education (majority of funds) Based on student FTE counts, Class size, Teacher training and experience Categorical Grants Pupil Transportation Equalization School Nurses Targeted Grants such as School Improvement, Special Education 5 * Information from New Board Member Training, GSBA, Nov 2012

6. Funding for School Systems Federal Funds Earmarked for certain programs only – very little flexibility Includes Nutrition Program (salaries included) Includes Title I, II, VIB, VI part B, CTAE, etc 6 * Information from New Board Member Training, GSBA, Nov 2012

7. Negative Impacts to Budget Local Fund Reductions due to Conservation Use Value Assessment Program (CUVA) enacted in 1992 and Forrest Land Protection Act (FLPA) enacted in 2008 by State of Georgia Legislature Impact: conservation cost Crawford County approximately $1.6 million a year ($800k for school system) 7 * Information from “A Discussion of Real-Life Tax Revenue Impact on Rural Counties” by Pat Kelly, May 2011

8. Negative Impacts to Budget FTE (Full Time Equivalent) Student Counts Downward Trend FTE count is a KEY factor in the QBE formula 8 YearFTEYearFTE 2003204520091840 2004200020101791 2005198020111811 2006197920121796 2007195220131815 2008188520141759

9. Negative Impacts to Budget State Austerity, QBE reductions Reductions total $7,951,130 since 2003! 9 Fiscal YearReductionFiscal YearReduction 2003$187,4742009$104,700 2004$217,8562010$1,070,401 2005$451,3732011$1,254,559 2006$451,3692012$1,328,371 2007$208,7682013$1,340,535 2008$165,5532014$1,170,171

10. Negative Impacts to Budget Increasing Health care costs for classified employees 76 classified: (746-162)*76*12 = $532,608 budget increase Anticipate Rates will continue to increase! 10 Fiscal YearCost increase per employee per month 2011$162 2012$246 2013$446 2014$596 2015$746 * Information from New Board Member Training, GSBA, Nov 2012

11. Steps Taken Prior to FY14 Furloughs – impacts all system employees 11 Fiscal YearFurlough Days 20102% + 6 days 201110 days 201210 days 20138 days 1 Furlough Day = approximately $52k impact to annual budget

12. Steps Taken Prior to FY14 Decline in ‘Fund Balance’ (ie Savings) Result of passing annual budgets that utilize these funds to “balance” 12 Fiscal YearFund Balance 2011$968,210.63 2012$842,116.16 2013$433,524.00 State recommends maintaining a Fund Balance of 5% to 15% of Annual Budget; for $13M budget, that equals $650k to $1.95M * Information from New Board Member Training, GSBA, Nov 2012

13. Steps Taken Prior to FY14 Staff Reductions Did not fill Assistant Superintendent Vacancy Went from 2 to 1 Assistant Principals at CCES Other unfilled positions: 13

14. Steps Taken Prior to FY14 Tax increases have been held to a minimum 14 Fiscal YearMillageFiscal YearMillage 200315.00200913.5 200415.00201013.5 200515.00201113.5 200615.00201213.5 200712.371201313.5 200812.370 Last Tax Increase was 2009

15. FY14 Budget Cycle Additional Burdens to FY14 Budget $408k: ‘Fund Balance’ required to balance FY13 budget is not available this year $689k: State QBE funding reduction compared to FY13; based on reduced FTE count, etc $137k: Increase Health Insurance cost for classified employees $1.234M : Total additional expenses added to FY14 Budget! 15 * Numbers quoted are budgeting estimates

16. FY14 Budget Cycle What Has Been Done to Date Reduction to 160 Day Calendar Unfilled Positions: High School Science, Counselor, and Others What Is In the Proposed Budget Increase to 10 furlough days 2.5 Millage Rate Increase 16 * Numbers quoted are budgeting estimates

17. FY14 Budget Cycle Impacts to the Budget 160 Day Calendar, Unfilled Positions, 2 Additional Furlough Days $400k Expenditure Reduction 2.5 Millage Increase $700k Revenue Increase TAVT and ~ $20k Fund Balance will be utilized to Balance Budget 17 * Numbers quoted are budgeting estimates

18. FY14 Budget Cycle 18 * Numbers quoted are budgeting estimates / Federal Funds not Included

19. FY14 Budget Cycle 19 * Numbers quoted are budgeting estimates / Federal Funds not Included

20. FY14 Budget Cycle 20 * Numbers quoted are budgeting estimates / Federal Funds not Included