fy14 tentative budget - henry county schools
TRANSCRIPT
Ensuring Success For Each Student
FY14 TENTATIVE BUDGET
OPERATING BUDGET
2010 - $317 million (6 furlough days)
2011 - $284 million (8 &10 furlough days)
2012 - $296 million (3 & 5 furlough days)
2013 - $293 million (0 furlough days)
2014 - $293 million (5 & 6 furlough days)
Financial Services
(5 Year History)
SIGNIFICANT CHALLENGES
State Revenue – austerity reductions (2003-2014)
Local Tax Digest – decline in revenue (2009-2012)
Technology – QBE does not fund K-12
Rising Employer Costs –
1) Health Care Costs for Classified Employees
2) Contribution to Teachers Retirement System of
Georgia
Transportation Funding
Financial Services
STATE AUSTERITY REDUCTIONS
Financial Services
Total $182,324,928
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14
TAX DIGEST HISTORY
Financial Services
Calendar Year Increase /-Decrease
2013 (projected) 0%
2012 -12.02%
2011 -6.57%
2010 -15.3%
2009 -1.97%
2008 8.24%
2007 10.25%
2006 10.19%
2005 10.11%
2004 9.33%
Note: Property tax revenue declined $42 million from 2009-2012.
TAX DIGEST
Financial Services
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Value of One Mill Property Tax (M&O)
$ M
illio
ns
PROPERTY TAX WEALTH PER PUPIL
Financial Services
District Rank
Atlanta City 5
Chatham County 12
Fulton County 18
Forsyth County 36
Cobb County 38
Dekalb County 48
Cherokee County 61
Gwinnett County 101
Henry County 112 (#116 prior year)
Clayton County 139
Note: 180 districts reporting - #1 is wealthiest
Source: Georgia Department of Education
(10 Largest Districts)
TEACHERS RETIREMENT SYSTEM (TRS)
Financial Services
Employee Rate Employer Rate
FY2014 6.00% 12.28%
FY2013 6.00% 11.41%
FY2012 5.53% 10.28%
FY2011 5.53% 10.28%
FY2010 5.25% 9.94%
FY2009 5.00% 9.28%
Note: Employer rate increase ($1.5 million for FY2014)
EMPLOYER HEALTH INSURANCE COSTS
CLASSIFIED EMPLOYEES
Financial Services
Employer Cost
Per Employee
Per Month
Employer
Total Cost
Annual
FY2012 $ 296 $ 4,649,155
FY2013 $ 446 $ 7,003,555
FY2014 $ 596 $ 7,988,784
FY2015 $ 746 $ 9,999,384
PUPIL TRANSPORTATION
REVENUE/EXPENDITURES
Financial Services
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
2005 2006 2007 2008 2009 2010 2011 2012
Expenditures
State Funding
2013 2014
FY14 OPERATING
REVENUE/EXPENSE
Financial Services
Revenue $280,914,532
Expense $292,856,267
Reserves to Balance Budget $ 11,941,735
REVENUE ASSUMPTIONS
Financial Services
No change in local tax digest
State austerity reduction FY2014 ($26.4 million)
State Revenue-Equalization Grant ($19 million)
Georgia attempts to equalize the inequities
in property wealth per student that exist in the
state…FY13 ($23 million)
REVENUE
Financial Services
Local
34%
State
65%
Federal
1%
FY14 STATE REVENUE (QBE)
Financial Services
QBE Earnings $218,354,901
Local Fair Share $ -31,672,359
Austerity Reduction $ -26,379,325
Equalization $ 18,862,432
Nursing $ 754,295
Transportation $ 1,439,773
Total Earnings $181,359,717
(Projected)
Note: State funding 2012-13 was $187,145,173
EXPENDITURE ASSUMPTIONS
Financial Services
5 furlough days for most employees(6 furlough days for administrators)
Outsource custodial services
Freeze salaries for all employees (5th consecutive year)
TRS based on actual salary received
School funding $44 per student ($50 per student FY13)
Additional Staffing:
6 Gifted Teachers
4 SPED Teachers
1 Counselor (Academy for Advanced Studies)
2 School Resource Officers Full-Time
2 School Resource Officers Part-Time
2 Impact Academy Teachers
FY2014 GENERAL FUND
EXPENDITURES $293 MILLION
Financial Services
Business
Services/General
Administration
1%
Student
Transportation
5% School
Administration
7% Central Support
Services
7%
Maintenance/
Operations
10%
Instruction
70%
EXPENDITURES PER STUDENT COMPARISON
Financial Services
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
Atlanta
City
Schools
Dekalb
County
Chatham
County
Fulton
County
State
Average
Cobb
County
Gwinnett
County
Cherokee
County
Henry
County
Clayton
County
Forsyth
County
FY12 Expenditures Per Student Comparison
(10 Largest Districts)
$7,667 $8,594
Source: GDOE Financial Data Collection System http://app.doe.k12.ga.us (includes Federal Programs)
* Ranks #155…180 Districts Reporting.
GENERAL ADMINISTRATION EXPENDITURES
Financial Services
School System FTE 2012
(Students)
Gen. Admin. Exp.
Per Student
Rank
Atlanta Public 49,217 $ 2,330 1
Gwinnett 164,455 $ 543 35
State Average 8,585 $ 413
DeKalb 97,297 $ 411 71
Fulton 91,682 $ 397 75
Chatham 34,523 $ 394 77
Clayton 51,052 $ 335 109
Cobb 108,496 $ 285 142
Forsyth 37,518 $ 226 161
Cherokee 38,679 $ 197 170
Henry 39,973 $ 174 175
Source: Financial Data Collection System http://app.doe.k12.ga.us
Note: Rank is based on #1 spending MOST amount per student…180 districts reporting.
(Excludes Charter Schools)
PER STUDENT EXPENDITURE
Financial Services
39,802 Students
$7,358
Note: Amount represents annual operating expenses only.
EXPENDITURES
Financial Services
Other
Expenditures
12%
Salaries &
Benefits
88%
SALARIES AND BENEFITS
Financial Services
Facilities &
Maintenance
$7.2 million
(2.8%) General
Administration
$7.5 million
(2.9%)
Transportation
$9.8 million
(3.8%)
School Positions
$233 million
(90.5%)
Total
Salaries / Benefits
$257.5 million
SALARY SCHEDULE
RECOMMENDATIONS
Financial Services
All employees will move up on the appropriate
schedule for an earned experience step.
Salary schedules will shift so the step reflects little
or no increase – salaries will be frozen.
Net result: most employees will receive the same
pay as they are receiving in current year if they are
employed in the same position.
SUMMARY
Financial Services
Direct instruction budget 70%
State austerity reduction ($26 million)
Equalization grant ($19 million…decrease $4 million)
Tax digest (same as FY13)
88% budget employee salaries/benefits
Employees will not receive a salary increase
Furlough days (5 for most employees, 6 for administrators)
Rising employer benefit costs (TRS and Health Insurance)
Balance budget with cash reserves ($12 million)