GSBA Finance Kit
A 30-45 minute presentation to assist in communicating the challenges facing districts in balancing
their budgets. This presentation may be used with community and employee groups. The central
message is that the world has changed, teaching and learning needs have changed. Public schools
have been asked to do more than ever, but funding has not kept pace. With continued cuts in state
funding and shrinking local property digests, districts have been forced to make deep cuts over the
past several years. It’s time to have dialogue about what the community sees as priorities for
balancing the budget.
Instructions:
1.Contact GSBA Communications Department at 770-962-2985 to request the PowerPoint.
2.Download the PowerPoint presentation to your computer.
3.There are numerous places within the presentation to customize the information for your district.
4.Recommended handouts for your meetings include: a detailed list of all cuts made to staff, salaries
and/or programs over the past several years; a pie chart that shows the distribution of revenue in the
district (there is also a slide in the presentation that does this); an explanation of unfunded programs
and services the district provides with local funds.
5.Please feel free to customize the presentation as needed for your district.
6.If you have any trouble with the PowerPoint, please contact the GSBA Communications
Department at 770-962-2985.
Options for Communicating About the Budget
Given that most people outside of administration and the board of education don’t understand how
complex school finance is, it is important to inform employees, civic leaders and the community
about the challenges faced in financing public education. It is not important to overwhelm them with
numbers or legal citations, or try to make them experts in school finance. It is important that there is
general understanding and that common ground is sought on those issues that affect the community.
Possibilities:
1.Create a local leadership coalition made up of school and community leaders that represent all
stakeholder groups. You can use this presentation to help explain the local funding challenges. Meet
(in person or via electronic means) with them throughout the budgeting process to keep them
informed. Ask for their assistance in informing their stakeholder group.
2.Present the information at staff meetings throughout the district and ask employees to send input
on what their priorities are for balancing the budget.
3.Present the information at civic group meetings such as the chamber, Rotary, etc.
4.Hold community conversations for stakeholder groups. (GSBA can assist with this!) The goal is to
gather input to assist the board in making decisions that reflect what the community feels is
important. Ask your leadership coalition to assist with the planning: where and when to hold the
meeting. Also ask their assistance in recruiting stakeholders to come to the meeting. Present the
information in a large group setting and then break up participants into groups of about 10-15 people.
Have neutral facilitators lead the discussion. Record thoughts on flip chart paper. Sample questions:
1) What are the strengths of the district that we are proud of and want to preserve?; 2) What are the
challenges (in addition to financial)? 3) What are your priorities for balancing the district’s budget?
Compile results and report at a regular board meeting.
Preparing Students for the
Challenges of Tomorrow:
We Can’t Do It Without You!
What We’ll Cover…
 The world has changed and public schools are asked to do
more and more.
 Education plays a significant role in our economy.
 ___________ County students are showing gains.
 ___________ County’s revenue picture shows declining
state funds.
 We have significant funding challenges.
 We are looking for solutions.
It’s a Different World for Kids
+ Email is too slow for them
+ They don’t fear Russia
+ Their blackboards are
Smartboards
+ They’ve never seen a Sears
catalog or a phone book
+ They know Clint Eastwood
as a sensitive director…not
Dirty Harry
We Are Asked
to Do More
 From 1910 to 1950 – schools added P.E. and football,
Vocational Schools, mandated transportation, ½ day
kindergarten, fine arts, school lunch programs,
driver’s ed, sex ed
 In the 60s and 70s – Advanced Placement, adult ed,
career ed, federally mandated special ed, drug
programs, Title IX programs, school breakfast
programs
…and More
 In the 80s– mandated child abuse monitoring, bi-
lingual education, full day kindergarten, after school
programs, expanded health and psychological
services
 In the 90s – America 2000 (Republicans), Goals 2000
(Democrats), technology use, expanded gifted ed,
at-risk and drop out prevention
 And in the 2000s – No Child Left Behind (Republicans),
Race to the Top (Democrats), body mass monitoring,
and much more…
Lately, we’ve been told…
 New Common Core Curriculum (national
curriculum) will be phased in over the next three
years
 National assessments will begin in 2014-15
 Career pathways will be required of all students for
graduation
 New teacher and leader evaluation (TKES/ LKES)
instruments will require more time and personnel
to implement
With Common
Core Curriculum
 We’ll need quality professional learning for staff so
teachers are ready to teach the Common Core
Curriculum and have strategies to promote higher
order thinking.
 Teachers need new assessment tools for the
Common Core to make sure kids are learning the
new curriculum.
 New intervention and support services for students
will be needed.
And Yet…
Public schools are facing major
economical funding cuts from the
state right down to the local level.
The Role of Education in our
Economy
 Without an
education,
our children
won’t be able
to find and
keep good
jobs.
GPEE, Economics In Education, 2013
4.2%
8.3%
9.1%
The Role of Education in our
Economy
Our local economy cannot thrive if its citizens
can only get the lowest paying jobs.
$38,012
$33,072
GPEE, Economics In
Education, 2013
$23,868
_________ County Figures
Unemployment rate: ______% (2012)
_____% of adults have high school
diplomas
____% have college degrees or higher
Current graduation rate for ____: __%
(approximately __% did not graduate)
Our Economy is Tied to Education
Counties with a large
percentage of their
populations without at
least a high school
diploma will find it
extremely difficult to
attract businesses and
sustain a healthy
economy.
Georgia Partnership for Excellence in
Education, 2012
A Snapshot of Our District
 _______ County Schools educates _____ students.
 We spend an average of $______ per student,
which is _________ than most districts our size.
 There are ___ public schools in ______ County.
(_____ elementary, _____ middle school and ___
high school)
 All of our schools are accredited by the Southern
Association of Colleges and Schools (SACS).
CRCT Scores for Grades 3-8
0.00%
FY 11
FY 10
20.00%
40.00%
60.00%
80.00%
100.00%
Customize for your district.
Reading
ELA
Math
FY 09
FY 08
________ Graduation Rate
Trend
FY 11
74.90%
Customize for your district.
FY 10
73.10%
FY 09
FY 08
FY 07
70.60%
68.30%
58.90%
How Our Schools are Funded…
2013
Customize for your district.
Federal Funds =
XX%
State Funds =
XX%
Local Funds =
XX%
Enrollment =
X,XXX
*According to the Georgia Department of Education website.
Federal Funding
 Federal funds can’t be used on expenditures
funded by state or local funds in previous
Customize for your district.
years.
 Federal expenditures are funded on a
reimbursable basis — you must spend it to
get it.
State Funding
 State funds make up __% of _______ County
Schools’ funding.
for your
district.
 The state’s Customize
education funding
formula
is based on a
1985 law, the Quality Basic Education Act. (QBE)
 A smaller portion of state revenue comes from
state grants for specific purposes such as Career
Tech, Ag programs and pre-school services.
 90% of the QBE funds are allocated based on
student enrollment and 10% is based on the
number and size of our schools.
QBE
 QBE was adopted in 1985 and is the basis for the
“formula” used to allocate funds through a
partnership between the state and local districts.
 The law is intended to ensure each student in the
state receives a quality basic education—not a
“Cadillac,” but a “Chevy.”
 The state pays districts an amount of money for
each student based on a QBE “foundation
formula.”
Austerity Cuts to _____ County
Lost QBE funding
 2013 Cut by $_______
 2012 Cut by $_______
Customize
for your district.
 2011
Cut by $_________
 20010 Cut by $__________
 2009 Cut by $__________
 2008 Cut by $_________
 2007 Cut by $__________
 2006 Cut by $
 Since 2003 total cuts of $_________
What Underfunded Mandates Mean
For ________ County Schools…
Customize
 Just a couple
of examples:for your district.
 ________ County paid 69% of the overall cost of
transporting students last year and 100% of the cost of
transporting students living within 1.5 miles of a school.
 Local districts must provide educators with 12.5 sick
days/year, but the state pays only $150 per
employee/per year. After the $150, any cost for
substitutes, etc. is paid by the local district. Subs are
paid a minim of $65/day.
What QBE Does Not Provide Any
Funds for……
 Social security costs (6.2% of taxable salary) and
workers’ compensation
Customize for your district.
 Athletics
 Other extra-curricular activities (band, drama,
student organizations, etc.)
 Capital expenditures (new buildings, new
technology, furniture)
_________ is Not Alone
Customize for your district.
 Over the past 10 years in Georgia, school funding
has been cut by $7 billion.
 Districts are having to furlough staff and, in some
cases, cut the number of school days in order to
balance their budgets.
 The economic climate is hurting the amount
districts collect from SPLOST funds.
 Revenue sources are severely limited.
Local Funding
 Property taxes are the primary source (over 90%)
Customize
for your
district.
of local revenue
for local school
systems.
These
funds are used for the operating budget. All
property is taxed, even rental properties.
 Property taxes are based on the county millage
rate adopted the Board of Education annually. By
state law, millage rates are capped at 20 mills,
except in a few rare circumstances.
_________ County School Tax
Customize for your district.
+ _________ County’s millage rate has remained the
same (_______) since 2009.
+ School property tax levy has decreased by
$________ since 2007.
SPLOST
 Special Purpose Local Option Sales Tax (SPLOST)
funds can be used for capital expenditures like
buildings and technology, but NOT for salaries
and other operating expenses.
 SPLOST is approved by the county voters every
five years. Projects are outlined ahead of time
and cannot be changed after approval by voters.
How funds are used in
___________ County…..
Customize for your district.
FY 12 Budget Summary
Funds 100-499 State, Local and Federal Regular Operating Accounts
Revenue
Customize
for your district.
State
$17,035,838
Federal
$ 3,059,212
Local
$ 9,064,362
Total revenue $29,159,412
Expenditures
Salary
$19,477,041
Benefits $ 6,957,776
Other
$ 4,202,609
Total Expense $30,637,426
Response to Financial Challenges
Customize for your district.
 2009:
 Raised millage 2.25 mills (12.62 to 14.87)
 Cut $1,040,135
 2010
 Rolled back millage to 14.668
 Continued cuts from 2008
 2011
 Millage remains at 14.668
 Continued cuts from previous years
 Cut additional $1,666,384
Response to Financial Challenges
 2012
Customize for your district.
 Millage remains at 14.868
 Continued cuts from previous years
 Cut additional $1,310,682
 2013
 Millage remains at 14.868
 Continued cuts from previous years
 Cut additional $1,274,275
 Cumulative savings since 2009: $8,601,294
General Fund Balance
Customize for your district.
 Beginning Balance, July 1, 2013, was $3,005,533
 Projected ending fund balance on June 30, 2014, is
$1,809,300
 Projected ending fund balance on June 30, 2014, if
no adjustments are made to revenues or
expenditures will be $210,493
 Minimal fund balance to operate is about
$1,314,600 (5% of revenues)
Our Local Challenges
The “funding Customize
cliff” has arrived….
for your district.
 Significant state cuts (austerity cuts) will remain in place.
 Our tax digest has decreased and the result is reduced local
revenues.
 Our equalization grant has been cut by over $1 million.
 Employee benefit costs are increasing significantly.
Our Local Challenges
 We have been cutting programs, positions and
operations since Fy2008.
Customize for your district.
 Staff pay has been cut every year since 2008
 Pioneer Regional Educational Services Agency’s salary
study shows us significantly behind the pay scales of
surrounding districts.
 Lack of funds will prevent us from moving forward in
student achievement, teacher/leader quality, and
addressing the graduation rate. (75%)
Strategies and Solutions
Customize for your district.
 Revenue: The only way to increase local
revenue is by raising the millage rate or
charging of services that are legally allowable.
(not many of these!)
 Expenditures: We will have to cut further into
our core business: teaching and learning.
Strategies and Solutions
Expenditures
Customize for your district.
 Increase Class Sizes (Means Cutting Teachers)
 Reduce or change student and staff support services
such as nursing, professional learning, and assistance
to students who struggle or who are high achievers
 Eliminate programs: Electives, Athletics, for example
 Reduce school days further
 Reduce or change operational support provided such as
transportation service, technology, facility care and
maintenance.
Our Budget Process
 We are seeking input from the community and our
employees to begin the process.
Customize for your district.
 The board and superintendent set the vision and
use input from the community and employees to
set priorities for the district’s educational program.
 The Budget Committee develops a proposed
budget and some specific recommendations and
sends to the Board for review.
The Budget Process Continues
 Funds are allocated based on state and federal mandates,
the state salary schedule and the district’s strategic plan.
Customize for your district.
 The local property tax millage rate is established to
generate revenue to fund what the state or federal funds
do not provide.
 The Board must operate under a balanced budget.
Adjustments to the proposed budget have to be made if
available revenues and an adequate remaining fund
balance do not cover expenses.
 The Board must approve a budget by July 1, the start of the
fiscal year, or pass a temporary spending resolution.
We Need Your Best
Thinking
Customize for your district.
 We want to hear from you on what
you believe should be the priorities
for _________ County Schools.
 These challenges are real. The
Board of Education needs your
input to help them make the tough
decisions.
 Our kids and our community
deserve no less.
Our Process for Engagement
 We will break in to small groups of about 8 to
10 people.
Customize for your district.
 Each group will have a trained, neutral
facilitator who is not an employee of the
district.
 Each group will consider four questions about
the future of our school district.
Our Process for Engagement
 Each group will follow a set of ground rules,
for example:
Customize for your district.
 Every person gets a chance to talk
 Every person is treated with respect
 It’s okay to disagree, but do so with respect
 Seek first to understand and then to be
understood
Thank you for your time!
The Board values your input and
will use it to assist them in making
a decision that reflects the
_________ County Community.