1. Education Funding Overview Budget Overview | www.gbpi.org Georgia Budget & Policy Institute Claire Suggs, Senior Education Policy Analyst January 10, 2014

2. Budget Overview | www.gbpi.org Who We Are State policy think tank Nonprofit Non-partisan Founded in 2004

3. Budget Overview | www.gbpi.org Our Policy Area Focus Taxes Budget Education Health Care Economic Security Economic Development

4. Our work isn’t about the numbers… It’s telling the story of people using numbers

5. Revenues Return to 2007 Levels General and Motor Fuel Funds 2007-2014 Fiscal Years

6. Drivers of Budget Growth $210 Million $109 Million $127 Million $42 Million $38 Million $35 Million 00 K-12 and University System Formula Growth Medicaid and PeachCare Growth Teacher and Employees Retirement Systems Contributions Debt Services K-12 Education Equalization Department of Justice Settlement Agreement 0 0 0 0 0 0

7. FY 2014 State General & Motor Fuel Funds Budget ($18.8 billion) Most Georgia Spending is for Education 51.5% Education Georgia’s Fiscal Year 2014 Budget: $18.8 Billion Other

8. FY 2014 State General & Motor Fuel Funds Budget ($18.8 billion) Health Care is 2nd Largest Budget Expense 51.5% Education 51.5% Education Other 20.9% Health Care Georgia’s Fiscal Year 2014 Budget: $18.8 Billion

9. FY 2014 State General & Motor Fuel Funds Budget ($18.8 billion) Many Services in Smaller Category “Other” 51.5% Education 51.5% Education Other Education Health Care Georgia’s Fiscal Year 2014 Budget: $18.8 Billion Other 27.6%

10. 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:

11. FY 2014 State General & Motor Fuel Funds Budget ($18.8 billion) Shifting Responsibility for K-12 Funding 51.5% Education 51.5% Education Other 27.6% SOURCE: Georgia Department of Education and GBPI research

12. K-12 Formula Underfunded by $1 Billion

13. 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 17.8 percent between 2008 and 2012. Local revenue per student fell by 5.8 percent. Between 2008 and 2012:

14. FY 2014 State General & Motor Fuel Funds Budget ($18.8 billion) Notes from Schools 51.5% Education 51.5% Education Other 27.6% The workloads have increased to a tipping point. At some point, the calling to be an educator is eroded by being beat down by doing more with less. We are losing our finest educators, which ultimately deteriorates our overall educational program. Jackson County

15. 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

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

17. FY 2014 State General & Motor Fuel Funds Budget ($18.8 billion) GBPI Recommendations 51.5% Education 51.5% Education Other 27.6% Develop an education funding system that supports success for all students in the 21 st Century Ensure tax and budget policies align with new funding system

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