1. FACTS, FINANCIALS & THE FUTURE

2. 1’st Public School in the State of Alabama EST. 1836 96 Schools 22,000+ Acres of Property (18,000 Acres of Timberland) Enrollment Approx. 63,000 Students Personnel Approx. 8,000 (4,000 Teachers) Largest School System In State Of Alabama Transportation 742 Buses 22,000 Miles per Day 1.4 Million Gallons Fuel Annually 56 th Largest School In the United States 65,000 Meals Per Day

3. Fiscal Year 2009/2010

4. State revenue - Funding received from the Education Trust Fund and other state appropriations Local revenue - includes all local tax revenue, grants from local agencies, earnings on investments, and charges for services Federal revenue - Revenues originating from federal government agencies such as Individuals with Disabilities Education Act, No Child Left Behind, Child Nutrition Program. Other revenue - various revenues including local school (admissions, concessions, fund raisers, etc.), E-Rate, Child Nutrition Program Rebates, Transportation charges, indirect cost, bond proceeds, insurance loss recoveries and revenue from auctions of equipment

5. Education Trust Fund: Source of Funding Note: Percentages Based on State Finance Directors FY 2008-2009 estimated receipts

6. State General Funds PAYS FOR: SALARIES & FRINGE BENEFITS CERTIFIED STAFF TEACHERS PRINCIPALS ASSIST PRINCIPALS COUNSELORS, LIBRARIANS CAREER TECH DIRECTORS

7. State Funding of Teachers ADM ÷ DIVISORS ⁼ NUMBER OF TEACHERS Number of Teachers for that particular grade funded by the State Grade divisors are approved annually by the State Board of Education used to calculate state earned teacher units Average Daily Membership-average daily enrollment for your system during the first twenty days after Labor Day of the school year GradesADMDivisors# of Teachers K-310,00013.8724.64 4-615,00021.4700.93 7-815,00020.0750.00 9-1220,00018.01,111.11 60,0003,286.68

8. State General Funds PAYS FOR: CLASSROOM INSTRUCTIONAL SUPPORT STUDENT MATERIALS TECHNOLOGY LIBRARY ENHANCEMENT PROFESSIONAL DEVELOPMENT TEXTBOOKS OTHER CURRENT EXPENSE SALARIES & FRINGE BENEFITS FOR SUPPORT PERSONNEL STATE REQUIRED SUPPLEMENTS TO THE CHILD NUTRITION PROGRAM OPERATING EXPENSES NOTE: ALL FUNDS ARE EARMARKED AND MUST BE SPENT AS ALLOCATED

9. OTHER STATE FUNDS SCHOOL NURSES ONE NURSE PER SYSTEM THEN $34.48 PER STUDENT FOR ADDITIONAL NURSES HIGH HOPES TECHNOLOGY COODINATOR TRANSPORTATION OPERATIONS AT RISK PRESCHOOL PROGRAM ALABAMA READING INITIATIVE CHILDREN’S FIRST AMSTI

10. Capital Funds PAYS FOR: ACQUISTION /CONSTRUCTION OF NEW SCHOOLS PURCHASE OF LAND/BUILDINGS BUILDING IMPROVEMENT PURCHASE OF EQUIPMENT/FURNITURE NEW SCHOOL BUSES (FLEET RENEWAL) State (3 Mill State Ad Valorem Tax)

11. FEDERAL FUNDS PAYS FOR: SPECIAL EDUCATION STAFF AND SERVICES CAREER TECH EDUCATION SERVICES FOR CHILDREN OF POVERTY CHILD NUTRITION ROTC (ARMY & NAVY) OTHER: SEA GRANT E-RATE

12. American Recovery Re-investment Act Special Education $16,000,000 State Fiscal Stabilization $15,000,000 Entitlement Funds $25,000,000 NOTE: ALL FUNDS ARE EARMARKED AND MUST BE SPENT AS ALLOCATED

14. Local Revenue PAYS FOR: ADDITIONAL TEACHERS – NOT FUNDED BY THE STATE ADDITIONAL ASSISTANT PRINCIPALS – NOT FUNDED BY THE STATE ADDITIONAL SUPPORT OF TRANSPORTATION OPERATIONS DEBT SERVICE SPECIAL EDUCATION AIDES – NOT FUNDED BY FEDERAL FUNDS LOCAL SCHOOL & CENTRAL OFFICE SUPPORT PERSONNEL 10 MILLS MATCH FOR STATE FUNDS

15. Note: Information obtained from State Department of Education 2007 Annual Report Note: Information obtained from U.S. Census Bureau Report on 2007 Per Pupil Spending National Average $9,666.00

16. Educating Children is a labor-intensive process. For that reason, the largest share of any school system’s budget goes to pay for employees wages & benefits.

18. RevenuesGeneral Fund Special Revenue Debt Service Fund Capital Projects Fund Enterprise/ Internal/Trust FundAll Funds Earmarked/ Discretionary State Revenue$301,659,105$19,320,698$320,979,803 100% Earmarked Federal: Revenue$14,817,861$107,171,670$119,989,531 100% Earmarked Local Revenue$106,952,580$3,875,706$29,786,339$140,614,625* 2%/48% Local: Local School Sites$10,223,220$3,542,255$13,765,475 100% Earmarked Other Sources$500,000.00$1,502,782$1,500$2,004,282** 5%/25% Indirect Cost$6,001,003 100% Discretionary Total Revenue$429,930,549$120,773,379$49,108,537$3,542,255$603,354,720 * Earmarked 10 Mill Match$39,884,460 Capital$29,786,339 Local CNP $3,875,706 $73,546,505 * * CNP Rebate $1,502,782 88% Earmarked$529,784,096 12%Discretionary $73,570,624 $603,354,720

19. ExpendituresGeneral FundSpecial Revenue Debt Service Fund Capital Projects Fund Enterprise/ Internal/Trust FundAll Funds Salaries-Certificated$202,700,056$16,631,538$219,331,594 Salaries-Support Staff$55,220,273$27,488,740$7,431,417$90,140,430 Employee Benefits$108,785,177$21,226,487$3,321,773$133,333,437 Purchased Services, Utilities, Rentals,$36,475,056$22,743,565$7,675,130$1,152,459$68,046,210 Materials & Supplies$9,755,212$34,706,179$8,449,722$1,909,278$54,820,390 Capital Outlay$614,774$4,882,933$5,497,707 Other Expenditures$303,705$421,107$251,500$321,446$1,297,758 Indirect Cost$6,000,998 Debt Service$4,327,901$19,444,957$2,526,282$26,299,141 Total Expenditures$417,567,380$129,833,388$19,444,957$34,538,756$3,383,183$604,767,665 Transfer In$17,178,528$16,390,896$21,498,111$295,567$249,043$55,612,145 Transfer Out($22,991,103)($6,477,098)($2,048,083)($23,846,818)($249,043)($55,612,145) Total Other Sources($5,812,575)$9,913,798$19,450,028($23,551,251)0.00

20. General Fund Special Revenue Debt Service Fund Capital Projects Fund Enterprise/ Internal/Trus t FundAll Funds Total Revenue$429,930,549$120,773,3790.00$49,108,537$3,542,255$603,354,720 Total Expenditures$417,567,380$129,833,388$19,444,957$34,538,756$3,383,183$604,767,665 Total Other Sources($5,812,575)$9,913,798$19,450,028($23,551,251)0.00 Revenue Over (Under) Expenditures$6,550,594$853,788$5,070($8,981,470)$159,072($1,412,945) Beginning Fund Balance$7,497,324$18,886,848$2,765,565$37,732,840$2,130,451$69,013,028 Ending Fund Balance$14,047,918$19,740,636$2,770,635$28,751,370$2,289,523$67,600,083

21.  All Alabama Public Schools are funded through the Foundation Program  Funds are distributed to schools based on ADM (Average Enrollment) and staffing  Every school system in Alabama must contribute the equivalent of 10 mills of local property tax to participate in the Foundation Program  Some school system receive more local support than others due to property values across the state  Essentially the State pays a smaller share of the cost of the Foundation Program for “wealthy” systems and a larger share of the cost where the systems are deemed “poorer” Benefits:  Levels the playing field for all school systems, equalizing educational opportunity  Provides every school system with resources needed  Does not affect any local taxes above the 10 mill requirement

22. Amendment #3 and Amendment #179 of The Constitution of Alabama, 1901, presently authorizes the collection of special county and district taxes for public school purposes. Since 1915 these taxes have provided the students of Mobile county with teachers, classroom materials and supplies, and much needed improvements to school building and facilities. The 2008 revenue from these 13 mills was $53.4 million, which translates into over 400 teachers and approximately $25 million in capital improvements. This vital source of revenue must be renewed by a vote of the citizens of Mobile County every 20 years. The last renewal was effective October 1, 1991 and will expire September 30, 2011.

23. 13 MILLS EXPIRING IN 2011 FACTS:  NOT A NEW TAX AND IS NOT CONNECTED TO THE 2001 “NEW TAX” VOTE  GENERATED $53.4 MILLION IN 2008  Renewal of taxes levied in the early 1900’s  General funds receive 7 mills and Capital funds receive 6 mills  Equals 6.2% of general fund total revenue and 33.8% of capital fund total revenue annually  Part of the 10 mill match required to receive state general funds and 1 mill match required to receive state capital funds  Provide the majority funding for special schools; Augusta Evans School, Regional School for the Deaf and Blind, Continuous Learning Center, Faulkner and Bryant Vocational Schools  Without renewal, local capital funds would decrease to approximately $3.6 million per year, significantly reducing building maintenance and repair  Without renewal, the school system would face massive layoffs of personnel and reductions in services to students  There has not been a “NO” vote since these taxes were levied

24. #1 in Alabama closing the Achievement Gap Only 5% of funds spent on Central Office Administration 96% of MCPSS achieved AYP up from 44% in 2004 Increased reserve (Fund Balance) even with tough economic times 6 out of 7 Alabama Torchbearer Schools are in Mobile County Credit rating improvement from A to AA- “0” Audit findings at Central Office 1 st day of school vacancies decreased from 186 in 2007 to 22 in 2009