1. G.A.I.N.S. Financial Review May 3, 2012

2. Items to be Covered FY 2012 Mid Term Budget FY 2013 Budget Equalization State Education Finance Study Commission Other Legislation 2

3. Items to be Covered PC Genesis Indirect Cost ARRA Reporting 15% Fund Balance 3

4. FY 2012 Mid Term Budget 4

5. QBE- 2012 MT Allotment Sheets reflect State Health Insurance at 1.4762% Working to providing FY12 MT Allotment Sheet reflecting 18.534% MT Allotment Sheet will be revised to reflect reduced Sparsity and Transportation 5

6. Dual Enrollment - 2012 Dual Enrollment - $4.9M on Spreadsheet – Funding for the earnings associated with students that take courses at post secondary school – Students currently reported with a “M” on FTE, which carries no QBE funding – Students were converted to “D” or “K” and funding calculated – Money will be dispersed through GAORS 6

7. Math & Science Supplement - 2012 Several issues still being addressed as to how it is to be paid Funding on spreadsheet subject to change Intent is to pay those teachers that were left off in FY 2011 7

8. Health Insurance - 2012 The Health Insurance rate for FY 2012 is 18.534%. Allotment Sheets were adjusted to provide funds for GaDOE to pay for a portion of the health insurance premiums directly to DCH. 8

9. Health Insurance - 2012 By the end of this Fiscal Year, GaDOE will reconcile the amount removed from the allotment sheets to the amounts being paid directly to DCH to ensure the districts receive their full funding at 18.534% for the year. 9

10. Categorical Grants- MT 2012 Pupil Transportation – reduced 2% ($2,606,214) Sparsity – reduced 2% ($53,700) Nursing – reduced 2% ($527,990) 10

11. RESAs – MT 2012 Reduced ETC funds by $60,487 11

12. FY 2013 Budget 12

13. Health Insurance – 2013 Effective July Payroll, Certified Billing will go from a percent of payroll to a Per Member Per Month (PMPM) billing similar to that currently in place for Classified employees. However, the FY 2013 Allotment Sheets will still be based on 18.534% for earned Certified employees and T&E. 13

14. Health Insurance – 2013 Although the funding for Health Insurance will be consistent from FY12 to FY13, each system’s expenditures will vary depending upon several factors. These factors include seniority of staffing and participation %. Based on these factors, your expenditures could increase or decrease in FY13 when compared to FY12. 14

15. Health Insurance – 2013 Plans are for the allotment sheets to better reflect actual expenditures by incorporating the PMPM premium and removing the fixed percent of payroll. 15

16. Health Insurance – 2013 Non-Certified PMPM Rate will increase with July 2012 payroll to $446.20 per month per employee covered. We do not have the PMPM Rate for Certified employees at this time. Expected to hear something from DCH next week. 16

17. Health Insurance – 2013 Can also anticipate all employee premiums to increase by about 10% for Plan Year 2013 which takes effect on January 1, 2013. 17

18. TRS Employer Rate - 2013 In July 2012 rates will be changing as follows: – Employer rates will go from 10.28% to 11.41%. – Employee rates will go from 5.53% to 6.00%. 18

19. QBE - 2013 No change to formula weights Change from mid term allotment sheet – Updated T&E based on Oct 2011 CPI (CPI 2012-1) – Hold Harmless from mid term will be removed for initial allotment – Equalization and Local Fair Share were updated No ARRA funds on the allotment sheet 19

20. Categorical Grants - 2013 Reductions made for FY12 mid term will remain for FY13 – Pupil Transportation – reduced 2% – Sparsity – reduced 2% – Nursing – reduced 2% 20

21. Transportation Funds - 2013 Bonds for Buses – Remember you still have to submit copies of invoices to get reimbursed – There will be $25 million in Bus Bonds in FY13 – Funding $76,219.50 per bus. – Funding for 328 buses (15% of need) – Announcement for FY13 process/allocation will be at the GAPT Conference in June 2012. 21

22. Math & Science Supplement - 2013 Several Changes made to Funding of Math & Science Supplement – Funding in arrears (those eligible in FY12 will be paid in FY13) – Increase will be limited to 6 years (Step 4) – Hope to provide funding early in FY13 22

23. RESAs - 2013 Reduced ETC funds by $60,487 (same as MT) 23

24. Local Fair Share - 2013 Total capped at $1.697 billion, same as it was for FY 10, FY 11 and FY 12 Formula calculation decreased by 7.14% Also reflects the decrease in the value of the digests (2010 Digest) Reduction is now at 93% of formula compared to 87% in FY 2012 24

25. Equalization – 2013 HB 824 – Revised Equalization Formula – Proposal of Education Finance Study Commission Amount of money needed to fully fund – Old Formula - $832 million – Revised Formula - $493 million Amount being funded remains the same at $436,158,587. 25

26. Equalization – 2013 Results of Changing Formula – No longer using the 75 th percentile district’s digest dollars per weighted FTE (wealth calculation) as the base for determining the equalization funds – The base for determining the equalization funding is now calculated by first removing the top 5% (9 districts) and bottom 5% (9 districts) as ranked on the wealth calculation and calculating the average wealth for the remaining 162 districts. 26

27. Equalization – 2013 Results of Changing Formula (continued) – For FY13, it took the base wealth value from the 46 th ranked district to around the 56 th ranked district. – The results of this change caused 10 districts to lose all equalization funding 47 districts to lose some equalization funding 77 districts (the poorest districts as determined by the wealth calculation) to receive additional funding 27

28. Equalization – 2013 Results of Changing Formula (continued) – To offset the losses of equalization for the 57 districts that lost some if not all of their equalization, $5 million was funded in FY12’s MIDTERM Budget and will be prorated out to these districts. – These amounts will be calculated and distributed to each of these districts before the end of FY12. 28

29. Equalization – 2013 Some adjustments made based on changes to adjusted equalized digest as published by the Department of Audit in the Sales Ratio Study Changes made due to a correction in the reporting of the Tax Digest from the Local Tax Commissioner to the Department of Revenue Can have a SIGNIFICANT impact on your equalization and Local Fair Share 29

30. State Education Finance Study Commission Recommendations Made this Past Year – Eliminate the 65% Direct Instruction Rule (did NOT pass) – Equalization Formula Change – Capital Outlay change shifting Growth Funds to Regular Capital Outlay Funds – Additional funding for School Nurse Program 30

31. Other Legislation HB 181 – Changes to SB10 HB 683 – Garnishments SB 246 – Change in PSERS rate for new hires HR 1162 – Charter Amendment HB 797 – Charter Funding Enabling Legislation 31

32. PCGenesis We are still supporting PCG, no intention to stop supporting 32

33. PCGenesis Development Team Alan Rees PCGenesis Lead Analyst/Developer Diane Ochala PCGenesis Senior Analyst/Developer 33

34. Recent Enhancements Export Option for Financial Files Third Party Printing / Data Capture Option School Nutrition DE-106 File Submission Added Features to Word Print Queue Report Range of Accounts Option Cancel Claim Range Option Add Vendor W9 information Suppress Leave on Payroll Remittance 34

35. Add Screen Print / Button Bar to Selected Screens 35

36. New Substitute Pay & Employee Leave System Overview The new Substitute Pay and Employee Leave System has been released. The new system is being piloted at one test site starting in April 2012. PCGenesis development anticipates that the new system will be available for additional “early adopters” by May 2012. The new system will be available for a phased implementation for the rest of our users by July 2012. While the programs have been released, this system is still evolving. 36

37. Indirect Cost Rates for FY 2013 The FY 2013 Indirect Cost rates have been finalized and are available in the Financial Review application in the portal. Indirect Reports: Fin Indirect Reports Menu (2011) Fin Indirect Reports Menu (2012) Fin Indirect Reports Menu (2013) 37

38. ARRA Reporting No Stabilization Funds No Education Jobs Funds ARRA Funds Still Being Utilized – Race to the Top (RTTT) – School Improvement Grants (SIG) – Districts with Tydings Amendment Funds 38

39. ARRA Reporting We will continue to do Quarterly 1512 Reporting Plans are to move reporting to the Portal and away from Cognos You will not need to report in June if you have not received any additional funds unless you need to make corrections to the previous report (March Quarter) 39

40. 15% Fund Balance 15% limit on fund balance calculation – Contrary to previous reports you cannot use deficiencies in revenue to lower your reserve when it comes to calculating your 15% limit on fund balance 40

41. Regional Meetings The Financial Review Section of the Georgia Department of Education (GaDOE) along with the Department of Audits plan to host a series of joint regional meetings on the latest topics and issues in accounting. These meetings will occur sometime during early June 2012. 41

42. Contact Information Lou Byars lbyars@doe.k12.ga.us Georgia Department of Education 1652 Twin Towers East 205 Jesse Hill Jr. Drive, SE Atlanta, GA 30334 404-656-2447 42