reduced state funding -$1,406,674,138 reduced local funding 30+ new superintendents (not to...
TRANSCRIPT
Alabama Educational Technology Association
Fall Symposium
September 26-29, 2010FY 2011 – FY2012
Financial UpdateDeputy State Superintendent, Craig Pouncey
What Have We Dealt With Over The Last Two Years?
Reduced State Funding -$1,406,674,138Reduced Local Funding30+ New Superintendents(Not To Mention Board Members)4 New Stimulus Fund Types$0 State Technology Funds
Continued…
New Reporting Obligations Accounting Software Conversions (Next
Gen)
Student Software Conversions (INOW)
Month to Month Uncertainties of available funds
Sept 30th – How Will We End? Oct 1st – How Will We Start?
We All Have Been Through It!
FY 2012→FY 2009
$460 million Required
“Challenges Ahead”
No ARRA Title I: $ 80 million No ARRA IDEA: $ 90 million No SFSF: $179 million Minimum Payment $110 million
for “Rainy Day Fund”
No Jobs Funds $150 million No ARRA EETT $ 10 million
FY 2012
$619 million
Needed to Replace Federal Dollars & Make Payment
11% Growth Needed
$1.07 Billion Total
19.8% Growth in Receipts
HISTORY OF EDUCATION TRUST FUND RECEIPTS
TOTALFiscal ETF PERCENTAGEYear RECEIPTS GROWTH
2000 4,114,571,877 5.19%2001 4,015,374,184 -2.41%2002 4,133,348,664 2.94%2003* 4,069,962,120 -1.53%2004 4,456,026,869 9.49%2005 4,969,255,238 11.52%2006 5,498,361,937 0.65%2007 5,854,027,193 6.47%2008* 5,943,258,156 1.52%2009**5,707,308,868 3.97%2010 5,726,000,000 0.33%
*FY 08 Excludes repayment of $32M and Proration Prevention Acct transfer of $439,372,515
**FY 09 After 11% Proration
It Ain’t Gonna Happen!
Other Alabama Factors To Consider:
4.7%
5.8% 6.0%5.5% 5.8%
9.7%9.9%9.7%9.7%7.6% 9.5% 9.5%9.7%
5.1%4.6% 4.6%
4.7%
11.0%11.1%
10.3% 9.7%
3.9%3.6%
3.5%
10.7%11.1%
5.4% 5.5%5.1%
10.1%
5.1%
11.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
2001
2002
2003
2004
2005
2006
2007
2008
2009 JA
NFEB
MAR
APRM
AYJU
NJU
L
Year and Month
Percent
US Unemployment RateAL Unemployment Rate
July Unemployment by County
APSCA Debt Service Payable from Sales Tax
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029Fiscal Years
As of May 2010
As of May 2010
PACT Funding from Act 2010-725
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029Fiscal Years
PACT from General ETF
PACT from Higher Ed. 30% Share of ETF
PACT from Sales Tax
APSCA from Sales Tax
Ratio of ETF Appropriations for K-12 To Higher Education, FY 1970 to FY 2011
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
1970 1975 1980 1985 1990 1995 2000 2005 2010Fiscal Years
PEEHIPAmount
Estimated Cost Increase for FY 2011 $255,000,000Cost Containment Savings
New Prescription Carrier $48,000,000Optional Plan Changes $5,000,000Prescription Drug Changes $33,000,000Eliminate Combining Allocations $6,200,000Premium Rate Changes $53,400,000Medical Plan Changes $40,540,000
Subtotal $186,140,000New Revenues
From Tobacco Penalty $8,860,000From Constitutional Reserve $60,000,000
Subtotal $68,860,000
Ending Balance $0
Funding PEEHIP for FY 2011Funding Provisions
Note: Some expenses funded from non-ETF sources
PEEHIP Expenses Budgeted FY 2011 $1,343,778,191Assume Rate of Medical Inflation 7.00%Inflation Adjustment for FY 2012 $94,064,473Number of Months 12.00 Cost Increase Per Month $7,838,706Assume Number of Active Employees 104,000.00 Estimated Cost per Active Employee $75.37Budgeted Cost FY 2011 $752.00Estimated FY 2012 Cost per Active $827.37
ESTIMATED PEEHIP COST FOR FY 2012
ETF Growth Projected for FY 2011
101112
13141516
1718
S T U
Category Amount % ChangeBase Forward from FY 2010 5,326,190,270$ n/aProjected Growth 63,279,521$ 1.19%Kimberly Clark Settlement 34,000,000$ 0.64%DOR Enhancements 30,000,000$ 0.56%IRS rule on Tax Preparers 10,000,000$ 0.19%APSCA Bond Issue 32,302,687$ 0.61%
Total 5,495,772,478$ 3.18%
FY 2010-2011
What Are Our Options?
New Taxes Working the Split Modify the Model
As bad as it may seem…
The sun is going to come up tomorrow!
“Continue to Collaborate”
With Your Office Within Your District Within Your Association
Teach people to work smarter› Technology is the only means by which we
can hope to do more with less
Learn to provide support and training from a distance.› No longer do we have to be there to get it
done
Stay current with E-Rate› (It may be the only means you will have to
make improvements)
Become an integral part of entitlement programs› (Federal funds aren’t prorated)
THANK YOU!