1. Crawford County School System Budget Discussions Aug 13, 2013

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

3. 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

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

8. 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

9. How We Got Here FTE Counts Downward Trend FTE count is a KEY factor in the QBE formula 9 YearFTEYearFTE 2003204520091840 2004200020101791 2005198020111811 2006197920121796 2007195220131815 2008188520141759

10. How We Got Here State Austerity, QBE reductions Reductions total $7,951,130 since 2003! 10 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

11. How We Got Here Increasing Health care costs for classified employees 76 classified: (746-162)*76*12 = $532,608 budget increase Anticipate Rates will continue to increase! 11 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

12. What’s Been Done to Date Furloughs – impacts all system employees 12 Fiscal YearFurlough Days 20102% + 6 days 201110 days 201210 days 20138 days 1 Furlough Day = approximately $52k impact annual budget

13. What’s Been Done to Date Decline in Fund Balance 13 Fiscal YearFund Balance 2011$968,210.63 2012$842,116.16 2013$433,524.00 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

14. 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

15. What’s Been Done to Date Tax increases have been held to a minimum 15 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

16. 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

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