Crawford County School System Budget Discussions Aug 13, 2013

Outline Funding Source Overview Where We Are How We Got Here What’s Been Done to Date Options Going Forward 2

How are Public School Systems Funded? 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

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

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

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

Where We Are Budget Deficit – When FY2014 budget cycle began, Crawford County Schools faced a $1.2M Budget Deficit 7

How We Got Here Local Fund Reductions due to Conservation Use Value Assessment Program (CUVA) enacted in 1992 and Forrest Land Protection Act (FLPA) enacted in 2008 Impact: conservation cost Crawford County approximately $1.6 million a year ($800k school system) 8 * Information from “A Discussion of Real-Life Tax Revenue Impact on Rural Counties” by Pat Kelly, May 2011

How We Got Here FTE Counts Downward Trend FTE count is a KEY factor in the QBE formula 9 YearFTEYearFTE

How We Got Here State Austerity, QBE reductions Reductions total $7,951,130 since 2003! 10 Fiscal YearReductionFiscal YearReduction 2003$187, $104, $217, $1,070, $451, $1,254, $451, $1,328, $208, $1,340, $165, $1,170,171

How We Got Here Increasing Health care costs for classified employees 76 classified: ( )*76*12 = $532,608 budget increase Anticipate Rates will continue to increase! 11 Fiscal YearCost increase per employee per month 2011$ $ $ $ $746 * Information from New Board Member Training, GSBA, Nov 2012

What’s Been Done to Date Furloughs – impacts all system employees 12 Fiscal YearFurlough Days 20102% + 6 days days days days 1 Furlough Day = approximately $52k impact annual budget

What’s Been Done to Date Decline in Fund Balance 13 Fiscal YearFund Balance 2011$968, $842, $433, State recommends maintaining a Fund Balance of 5% to 10% of Annual Budget; for $13M budget, that equals $650k to $1.3M * Information from New Board Member Training, GSBA, Nov 2012

What’s Been Done to Date Staff Reductions – Did not fill Assistant Superintendent Vacancy – Went from 2 to 1 Assistant Principals at CCES – Other unfilled positions: High School Science, Elementary Counselor, and others 14

What’s Been Done to Date Tax increases have been held to a minimum 15 Fiscal YearMillageFiscal YearMillage Last Tax Increase was 2009

What’s Been Done to Date 160 Day School Year – Expected to result in energy, fuel, maintenance, supply and salary savings – However, negative impact to bus drivers and nutrition workers who will work 15 less days 16

Tough Decisions Going Forward Increased Furloughs Tax increases Contracting bus service, other services Reducing non-mandated course offerings Athletics Other? 17