Savannah-Chatham County Public School System 208 Bull Street / Savannah, Georgia /

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1 Savannah-Chatham County Public School System 208 Bull Street / Savannah, Georgia / June 30, 2013 Members of the Board of Education and Citizens of Chatham County: I present to you the FY Adopted Budget for All Funds for the Savannah-Chatham County Public School System (SCCPSS). Here in Savannah-Chatham County and all across the state of Georgia, school districts continue to feel the squeeze of diminished revenues coupled with increasing operational cost. Each year we take a very close look at every dollar to ensure our available funds are being utilized in a way that will have the greatest impact and ensure the positive progress for our children. We have provided a budget that will support our schools and focus our work to ensure EVERY student is fully prepared for success in college or a career. As a result of the Passport to Excellence (P2E) transformation plan, more families are coming into the district, new schools are being built, and greater academic options are being realized. Through the hard work of our School Board, staff, and faculty, we continue to navigate budgetary challenges and offer quality learning experiences, effective academic initiatives, and increased safety and security measures. I am proud of our achievements. Under P2E, the start of the school year was marked with great progress. Woodville-Tompkins continued its transition into a dedicated high school and now has students in grades nine through eleven who are enrolled on a full-time basis; the Savannah Early College Program successfully relocated to the Savannah High School campus, making way for expanded Career and Technical options at the Woodville Annex; the new Beach High School opened to the delight of students, parents, faculty, and staff with a modern, multi-million dollar ESPLOST funded facility; and our newest dedicated specialty school, the STEM Academy at Bartlett Middle, began serving students for the first time, with a focus on the applications of Science, Technology, Engineering, and Mathematics. We are committed to providing schools that exhibit academic excellence - schools where students learn in a safe environment strengthened by parental involvement, community collaboration, and quality instruction. Because of this commitment our community has responded. Each year our student body continues to grow, as more and more families make the choice of public education for Savannah-Chatham County Public School System 1

2 their children. Our total number of students now tops 37,000, an increase of more than 700 students from record count day last year. This one-year growth is the equivalent to that of an entire new school and we thank every one of our families for entrusting SCCPSS with your child s educational needs. Our dedicated staff and faculty maximize our resources in full belief that all students can learn and achieve at high levels. Effective educational strategies, technology in the classroom, Specialty Programs, professional development programs, and technical pathways that focus on career or college readiness remain critical for steady, sustained progress. As a result, we are proud that our graduation rate is on the rise; that the Criterion Referenced Competency Test (CRCT) and End of Course Test (EOCT) scores are greatly improved; and that truancy and dropout rates are on the decline. As we look to the future, we know that tough decisions will remain a large part of the budget process. However, we will always strive to meet the needs of every child, and no matter the budgetary climate, our district will always work to strengthen classroom instruction and increase student learning. I am so proud of the support our community has shown for public education, and the many dedicated employees who serve our students every day. Our schools provide all students with a rigorous curriculum and relevant, engaging learning experiences from highly qualified teachers in a safe and secure environment. Our focus will not waiver, and we will continue to make effective budgetary decisions that will advance public education and support the development of a world-class school system in Savannah-Chatham County. BUDGET OBJECTIVES At the February 6, 2013 meeting, the Board adopted the following Budget objectives to be used in the development of the FY 2014 FY 2016 budgets: Goal # 1. To improve academic achievement. Budget Objective # 1. Ensure that SCCPSS graduates have the skills, knowledge and attitudes needed to compete in a demanding and technologically sophisticated global marketplace. Goal # 2. To ensure fiscal responsibility and effective resources stewardship. Budget Objective # 2. Work to balance the community s desire for both excellent school programs and reasonable taxes by critically evaluating current practices, proposed expenditures, and revenue sources other than taxes. Budget Objective # 3. Support the development of new strategies to compensate for the loss of state aid and still deliver a comprehensive education program at a reasonable cost. Savannah-Chatham County Public School System 2

3 Continue to seek opportunities where a short term cost can reap long term benefits and/or savings. Goal # 3. To provide safe and secure environment for students and employees. Budget Objective # 4. Create a safe, secure, law-abiding environment, which is conducive to learning. Goal # 4. To engage parents and other community stakeholders. Budget Objective # 5. Engage the community to share their perspectives and values on school programs they wish to support with their tax dollars. Budget Object # 6. Actively advocate for state legislators to reform the mandates outside of school districts control that currently drive up costs in the areas of instruction, personnel, and construction. BUDGET IN BRIEF The Adopted Budget for All Funds includes the following highlights: A 1.25 mill increase in the Maintenance and Operations millage rate. Anticipated State Austerity reductions to the General Fund of $18.8 million. 20% reduction in Federal Grant funding. General Fund balance use of $5.5 million. Maintain current class sizes. Additional funds to cover utility cost increases. Additional funds to cover district wide lawn maintenance costs. Reduction in work force of 13.5 net Teacher Retirement rate increased from 11.41% to 12.28% State Health Insurance increased from $ to $ per month for non-certificated employees. Funding to cover the purchase of new buses of $2.7 million. Funding to cover increased property insurance premiums as a result of adding properties. Funding to cover high school athletic start-up costs and an additional Athletic Trainer. A 1% COLA for all staff. A year of service step increase for all eligible staff Funding to pay for K-8 Principal scale adjustments. Funding to cover a Campus Police Vehicle Replacement schedule. Funding to cover increased contributions to Oglethorpe Charter Academy and Coastal Empire Montessori to support their increases in student enrollment. Funding to cover the addition of two new charter schools (Tybee Maritime and the Savannah Classical Academies) $3 million. No increase of staffing in State QBE program areas. Board contingency of $500 thousand. Student transportation and fuel increase of $1.4 million. Maintain Staffing Reserve for 10 th day adjustments of $1 million. Savannah-Chatham County Public School System 3

4 RELATIONSHIP TO PRIOR YEAR S BUDGET Fiscal Year 2014 marks the fourteenth year of the requirements of SB 177, the Taxpayers Bill of Rights. The key component of this legislation for the school district is the downward pressure it creates on setting property tax millage rates. The requirements of this legislation are discussed in detail later in this letter. In addition to these legislative actions, local costs continue to increase. Fuel, energy, property insurance, and health benefits costs are just a few examples where we must pay substantially more for the same level of services. We have also had to address multiple employee compensation issues to create and maintain both internal equity and external competitiveness. PRIORITIES AND ISSUES FOR THE NEW BUDGET YEAR ESPLOST An Education Special Local Option Sales tax was passed by voters in September Many projects consisting of new and replacement schools, roof replacements, building renovations, additions, and improvements, technology upgrades and fencing projects improving the safety and security of all of our schools have been completed. On November 8, 2011, voters approved ESPLOST II, which extended the additional penny sales tax another five years to fund additional major capital projects. Over 70% of the planned expenditures will be spent building new and replacement schools or additions and renovations to existing facilities. The Georgia College and Career Ready Performance Index (CCRPI) As of March 30, 2012, Georgia was one of only 10 states to have been granted a waiver from No Child Left Behind (NCLB). No longer will Georgia be bound by the narrow definitions of success found in NCLB. The waiver enables the state to hold schools accountable and reward them for the work they do in all subjects and with all students. In order to receive the waiver, the U.S. Department of Education required that states identify Title I Priority Schools, Focus Schools, Alert Schools, and Reward Schools. Achievement data from all core content areas and graduation rate data will be used to identify Priority and Focus Schools, which will replace the current Needs Improvement Schools designation. Reward Schools which will be determined based on math, reading and English language arts results will replace the current Title I Distinguished Schools designation. Georgia will also identify Alert Schools in three categories: Subgroup Alert Schools, Subject Alert Schools, and Graduation Alert Schools. These Alert Schools will be identified based on a more detailed evaluation of subgroup performance and include non-title I schools. Savannah-Chatham County Public School System 4

5 Our Savannah-Chatham County Public School System has no Alert Schools and five have been designated as High Progress Reward Schools. Those reward schools include: Butler Elementary; Heard Elementary; Hubert Middle; Low Elementary; and Pulaski Elementary. CCRPI The Index has been designed around a comprehensive definition of college and career readiness, or the level of achievement required in order for a student to enroll in two or four year colleges and universities and technical colleges without remediation, fully prepared for college level work and careers. This means that all students graduate from high school with both rigorous content knowledge and the ability to apply that knowledge. The Index will include scores that easily communicate to the public how a school is doing. Each school will receive a score out of 100 points, just like what students receive in their classes. A school and district s overall score will be made up of three major areas: Achievement (70 points possible), Progress (15 points possible) and Achievement Gap (15 points possible). In addition to the three major areas, schools can receive Challenge Points to add to their score (up to 10 points). They can receive these points if they have a significant number of Economically Disadvantaged students, English Learner students and Students with Disabilities meeting expectations. They can also receive points for going beyond the targets of the CCRPI by challenging students to exceed expectations and participate in college and career ready programs. Beginning in , schools will also receive ratings based on their financial efficiency and school climate, but these ratings will be for the public s information only as it will not factor into the overall CCRPI score. The Esther F. Garrison School of Visual & Performing Arts was recognized by State Superintendent Dr. John Barge as one of the highest performing schools in the state. High Performance schools are the top performing schools within each Congressional District that have shown the highest performance on the College and Career Ready Performance Index (CCRPI), placing Garrison among the 2012 Georgia Schools of Excellence. For more information on the College and Career Ready Performance Index, go to Instructional Readiness Indicators In February and March 2013, the Georgia Department of Education (GaDOE) convened committees of educators to review the achievement expectations for the Reading, English Language Arts, and Mathematics CRCT. These committees were charged with recommending a coherent system of readiness indicators to inform instructional planning and decision making. The committees considered the content standards, the test items included on the 2013 CRCT in each content area, as well as performance of Georgia students on other measures such as the National Assessment of Educational Progress (NAEP). Savannah-Chatham County Public School System 5

6 The resulting CRCT readiness indicators recommended by the committees have been designed to: Send a signal to stakeholders about where students are relative to the higher expectations in the CCGPS; and Provide feedback about students preparedness for the increase in rigor and expectation for student achievement that is on the horizon. The 2013 CRCT Readiness Indicators provide school systems with a view of how their students performance on the 2013 CRCT would have looked if these new readiness levels had been applied as cut scores on the CRCT, replacing the established cut scores of 800 for Meets Standard and 850 for Exceeds Standard. Three readiness levels (Needs Additional Support, On Track, and Commendable) broadly describe students knowledge, skills, and abilities. A student at the Needs Additional Support level has demonstrated that his or her command of knowledge and skills described in the CCGPS warrants additional instructional support. A student at the On Track level has demonstrated that his or her command of the knowledge and skills described in the CCGPS is sufficient; the student is on track for success at the next level. A student at the Commendable level has demonstrated that his or her command of the knowledge and skills described in the CCGPS is exemplary. The Graduation Rate In April of 2012, the Georgia Department of Education began reporting its public school graduation rate in a new way. This new graduation rate calculation is known as the Cohort Graduation Rate. Historically, not all states have calculated graduation rates in the same way. In order to make sure that all states are reporting graduation information in a similar way, the United States Department of Education issued a requirement that all states should use the Cohort Graduation Rate method of calculation beginning with the graduating class of The Cohort Graduation Rate tracks students from the date that they enter 9th grade in order to determine whether they earn a regular high school diploma within four years. For example, for the graduating class of 2011, the calculation looks like this: Number of students who entered 9th grade in the school year* AND who earned a regular high school diploma by the end of the school year DIVIDED BY Number of students who entered 9th grade in the school year* Savannah-Chatham County Public School System 6

7 In the second year of reporting the high school graduation rate under the Adjusted Cohort Rate, Savannah-Chatham Public Schools are trending in a very positive direction. In school year , Savannah-Chatham Public Schools outperformed comparison school districts by 4 points and well surpassed the year to year state increase with an 8.9 percentage point increase growing from 54.4% in school year to 63.3% in school year Two high schools in Savannah-Chatham County posted double digit gains and the district s year to year gain is more than three times higher than that of the state. We are proud of the year to year gains we ve realized under the four-year calculation method. The growth is a result of the hard work of our faculty, staff, and students. Savannah-Chatham County Public School teachers and staff are committed to supporting our students to achieve success in school and beyond. School and district level teams review transcripts to ensure that student records are complete and accurate, and identify what students need in order to be on track for graduation. Our schools have implemented an instructional focus block to enable students to receive the specific academic and behavioral supports that they need during the school day. In addition, the district offers innovative programs such as Twilight School to reach students outside regular school hours. While we will celebrate our year to year achievement, we understand this is just one step in the direction of our goal - to fully prepare all students for a successful transition into college or careers, regardless of how the graduation rate is calculated. The Georgia Race to the Top Plan (RT3) The Race to the Top fund is a $4 billion grant opportunity provided in the American Recovery and Reinvestment Act of 2009 (ARRA) to support new approaches to school improvement. The funds are made available in the form of competitive grants to encourage and reward states that are creating conditions for education innovation and reform, specifically implementing ambitious plans in four education reform areas: Recruiting, preparing, rewarding, and retaining effective teachers and principals, especially where they are needed most; and Adopting standards and assessments that prepare students to succeed in college and the workplace and to compete in the global economy; Building data systems that measure student growth and success, and inform teachers and principals about how they can improve instruction; Turning around our lowest achieving schools. Driven by our Passport to Excellence Plan and the District Accountability Plan, the SCCPSS Race to the Top initiative is at the core of our progress as we strive to become a World-Class school system where the achievement gap has been eliminated, all students are powerfully literate, and multiple opportunities and options for learning exist. By providing supports for Standards and Savannah-Chatham County Public School System 7

8 Assessments, Great Teachers and Leaders, Data Systems, and our Lowest Achieving Schools, we will accelerate student outcomes that benefit all children. Through the Race to the Top initiative, SCCPSS has: Developed Rapid Response Assessment Tools that provide critical information in the assessment of student proficiency levels: Dibels, SRI, Compass Learning, NWEA-MAP. Integrated Better Data Systems to Improve Instruction through: Professional Development practices, the Statewide Longitudinal Data System, and better Data Collection practices. Provided for the continued development of Great Teachers and Leaders through the Teacher Keys Effectiveness System that that places a focus on: Student Achievement (Student Learning Objectives and Student Growth Percentile), Classroom Observations, and Teacher Documentation. Implemented programs in the support of Turning Around our Lowest Achieving Schools (LAS) to include: Math Literacy and Graduation Coaches, Extended Learning Time, Common Planning Time, Blended Learning Tools, and the launch of the Twilight High School program. CONCLUSION We have much to celebrate in Savannah-Chatham County and we have much to accomplish. Through effective classroom teaching, strong parental involvement, and the ongoing support of our community, our students will continue to reap great benefit in their journey to become productive citizens in an increasingly competitive global workforce. Thank you for your commitment to the Savannah-Chatham County Public School System. We look forward to a truly exceptional school year for all. Sincerely, Thomas B. Lockamy, Jr. Ed.D. Superintendent of Schools Savannah-Chatham County Public School System 8

9 Executive Summary Mission, Vision and Guiding Principles Savannah-Chatham County Public Schools Mission Statement To ignite a passion for learning and teaching at high levels Vision Statement From school to the world: ALL students prepared for productive futures Guiding Principles Guiding Principles are the shared values and management style of the organization. They articulate the ethical standards by which the organization makes decisions and conducts activities. Guiding Principle 1: The school board provides guidance and support to schools by establishing clear goals, aligned policies, high standards, and effective systems of evaluation which produce accountability and results. Guiding Principle 2: The academic achievement of students will be at a level that will enable them,upon graduation from high school, to enter college or the work force fully prepared to be successful without need of remediation. Guiding Principle 3: Education is a shared responsibility between home, school and community. Guiding Principle 4: A safe, secure and orderly environment is essential for teaching and learning. Guiding Principle 5: All children can learn and achieve at high levels but may learn at different rates or learning styles. Guiding Principle 6: Fiscal responsibility and accountability must be maintained at all times. Guiding Principle 7: Positive relationships are built through honesty and respect which enhance cooperation, safety and well- being of students, families and staff. Savannah-Chatham County Public School System 9

10 Goal #1 TO IMPROVE ACADEMIC ACHIEVEMENT System Goals and Objectives A. Reading on Grade Level To increase the percentage of students who are reading on grade level by the end of grade 2 as measured by the District reading assessment. B. Georgia Criterion Referenced Competencies Test (CRCT) To increase the percentage of students meeting or exceeding standards in the core content areas as measured by the Georgia CRCT examination administered in Grades 3, 5, and 8 (first time test takers only retest scores are not included). C. Iowa Test of Basic Skills (ITBS) To increase the District average score in the core content areas as measured by the Iowa Test of Basic Skills, a norm-referenced examination administered in Grades 3, 5, and 8. D. Graduation Rate To improve the District graduation rate as measured using the Georgia AYP calculation method. E. Georgia High School Graduation Test To improve first time test takers success rate on the GHSGT as measured by the Georgia Department of Education. F. Advanced Placement Tests To increase the percentage of students participating and achieving a score of 3 or higher on Advanced Placement Exams as determined by the College Board. G. International Baccalaureate (IB) Diplomas To increase the percentage of students enrolled in the International Baccalaureate program being awarded the International Baccalaureate Diploma. H. Scholastic Aptitude Reasoning Test (SAT) To increase the District average on the Verbal and Mathematics portions of the SAT Reasoning Test, a nationally norm-referenced college entrance examination. I. ACT To increase the District average composite score on the ACT Test, a nationally normreferenced college entrance examination. Savannah-Chatham County Public School System 10

11 Goal #2 TO ENSURE FISCAL RESPONSIBILITY AND EFFECTIVE RESOURCE STEWARDSHIP A. ESPLOST Program ESPLOST projects are completed on-time and within budget and change orders are effectively controlled. B. Financial Reporting To provide complete, accurate, and timely financial reporting for the Board and the public. C. Use of Audits To use various internal and external audits and program reviews as tools for continuous improvement. D. Stewardship of Human Resources To provide information on the effectiveness of the District s management of its Human Resources. E. Stewardship of Facilities To improve the utilization of the District s facilities as measured by the percentage of capacity used and utilities cost per student. Goal #3 TO PROVIDE A SAFE AND SECURE ENVIRONMENT FOR STUDENTS AND EMPLOYEES A. Truancy To improve student attendance at all grade levels by reducing the Truancy Rate. B. School Discipline To reduce the number of infractions that give rise to referrals for suspension and expulsion while ensuring that appropriate and consistent discipline is being administered in all of the District s educational settings. C. Emergency Preparedness To ensure the preparedness of schools in the event of an emergency/crisis situation by conducting live and simulated exercises at all sites. D. Weapons and Drugs To reduce the numbers of weapons and drugs on school campuses as measured by official police reports. Savannah-Chatham County Public School System 11

12 F. Dropout Rate To decrease the number of dropouts from the Savannah-Chatham County Public School System as measured by the Department of Education during the Fall FTE data collection. Goal #4 TO ENGAGE PARENTS AND OTHER COMMUNITY STAKEHOLDERS A. Engaging our Students Parents To increase the level of parental involvement in the educational process as measured by the attainment of model Parent Teacher Association (PTA) status as determined by the Georgia PTA. B. Engaging the Business Community To increase the number of business partnerships. C. Engaging our Neighborhoods & Communities To develop direct contacts between school principals and the communities / neighborhoods they serve. This also includes our military community. D. Engagement Through Mentoring & Tutoring To increase the number of mentors and tutors available to our students. E. Perceptions of the District To improve the overall perception of the District by its many constituencies, to include students, parents, visitors, volunteers, mentors, and business partners as measured by an annual climate survey. Savannah-Chatham County Public School System 12

13 FY2014 Budget Process General Guidelines Current revenues will be sufficient to support current expenditures. On-going operating expenditures will be funded with on-going revenue sources. The budget process and format shall be school/department based and focused on goals and objectives. The School system will maintain a budgeting control system to ensure continual compliance with the adopted budget. The budget will provide adequate funds for maintenance of capital plant and equipment and funding for their orderly replacement. Budget Process The 2004 Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards (2004 Codification) Section 1700 calls for the adoption of an annual budget by every government. Georgia Law (OCGA ) also requires each LUA adopt an annual budget for all funds except capital projects and trust and agency funds. The adopted budget is a legally binding document, which details how the District may use available funds. It is the primary tool used by the local Board to control the system's resources. The budget document is a reflection of the District's goals, objectives, and priorities, and serves as the financial plan of action. The budget preparation process extends for a period of approximately 10 months beginning in September of the year prior to adoption. All governmental and proprietary (internal service) fund types are budgeted by the District on an annual basis. The budget for the upcoming fiscal year (July 1 through June 30) must be submitted to the local Board of Education prior to June 30th for legal adoption. No public funds may be expended until the Board has approved the budget unless a spending resolution is adopted. After review by the Superintendent and the Executive Management Team, the Division of Finance prepares a proposed budget for submission to the Board of Education. Copies of the proposed budget are placed in libraries throughout the District. Using newspaper advertisement, the public is notified of the proposed budget, the placement of library copies, and the date, time, and location of the public budget hearing. Work sessions with the Board are scheduled as needed, and the Board then tentatively adopts the budget. Once the budget is tentatively adopted, it is advertised in the local press. The advertisement depicts projected revenues and expenditures by fund type, along with the date, time and location when the budget is to be legally adopted. In most instances, the Board will legally adopt the budget at the next regularly scheduled Board meeting following the tentative adoption. Savannah-Chatham County Public School System 13

14 Fiscal Year 2014 Budget Process Continuation The most significant revenue source to be considered in the budget adoption process is local property taxes. The two major parts of the calculation are the tax digest and the millage rate. Each year, the Chatham County Board of Assessors establishes the taxable value of all property in the county and publishes the certified tax digest for each taxing jurisdiction. The Board of Education has two separate taxing jurisdictions and therefore receives two separate tax digests: one for Maintenance and Operations and another for Bonded Indebtedness. Upon receipt of certified tax digests for the upcoming calendar year from the County Board of Assessors, the Board of Education must determine the tax millage rates to be levied for both Bonded Debt and for Maintenance and Operations to meet its revenue requirements. Once these millage rates are tentatively adopted, the Board must then advertise the tax digest and millage levy for the preceding five years, along with the current year's digest and proposed millage rate to be enacted for the year. The recommended millage rate is approved during the regular Board meeting and is provided to the Chatham County Commissioners for action. The adopted budget is submitted for formal approval to the State Board of Education. The State Board generally approves the budget in November; however, the District is permitted to expend funds on a conditional basis until final state approval is received. The Chatham County Board of Education may legally amend the budget at any time during the year. Savannah-Chatham County Public School System 14

15 Savannah-Chatham County Public Schools FY Budget Calendar November 2012 November 1 st Begin Enrollment Projections (Staff) November 7 th Board Adopts Legislative Priorities for 2013 January 2013 January 7 th Begin Staffing Projections (Staff) February 2013 February 1 st Enrollment Workshop Informal Meeting Present Budget Calendar for Adoption March 2013 March 6 th Board Budget Workshop Informal Meeting April 2013 April 10 th Tax Assessor Office Presentation Informal Meeting May 2013 May 1 st Board Budget Workshop Informal Meeting May 13 th Advertise Board Public Hearing on Budget (to be held May 29 rd ) in Newspaper and on SCCPSS Website May 17 th Board Members receive Recommended Budget May 17 th Recommended Budget to Live Oak Public Libraries May 29 th Board Public Hearing on Budget June 2013 June 3 rd Tax Digest and Rollback Millage Rate from Chatham County Board of Tax Assessors (Approximate Date) June 5 th Board Budget Workshop / Regular Board Meeting (Tentative Budget / Millage Rates Adoption) June 5 th Advertise Millage Rate Hearings 1 and 2 (to be held June 12 th ) in Newspaper and on SCCPSS Website June 5 th Staff Issues Press Release on Tentative Recommended Millage Rate / Required Press Release of Intent to increase taxes ) in Newspaper and on Website June 10 th Advertise Five Year Tax Digest and Tentative Recommended Millage Levy ) in Paper and on Website June 11 th Advertise Final Budget Adoption by Board ) in Newspaper and on SCCPSS Website June 12 th Board Millage Rate Hearing 1 and 2 June 18 th Advertise Millage Rate Hearing 3 (to be held June 26 th ) ) in Newspaper and on SCCPSS Website June 26 th Board Meeting (Millage Rate Hearing, Recommended Millage and Final Budget Adoption) June 30 th Fiscal Year 2013 Ends July 2013 July 1 st Fiscal Year 2013 Begins July 1 st Staff Transmits Certified Millage Resolution to County Commission July 3 rd Advertise Five Year Tax Digest and Recommended Millage Levy July 29 th County Commission (Levying Authority) Adopts Millage Rates July 30 th Assessor Submits Tax Digest and Levy submitted to Georgia Department of Revenue for Approval (Approximate Date) August 2013 August 30 th Staff Submits FY 2014 Budget to Georgia Department of Education September 2013 September 30 th Staff Distributes FY 2014 Adopted Budget Book and submits book to GFOA & ASBO Savannah-Chatham County Public School System 15

16 Explanation of Allocation of Human & Financial Resources Budget Assumptions / Initiatives and Constraints FY Adopted Budget for All Funds Revenues Consolidated School (Maintenance and Operations) Tax digest (net of exemptions) will increase by $234,835,250 to $11,606,787,741, a 2.07% increase for calendar year 2013 (fiscal year 2014). This is inclusive of the Stephens-Day Homestead exemption as well as the recently approved Local Disabled Homestead exemption and Statewide Personal Property exemption increase. Due to a slowly recovering market, the total net assessed value had a slight increase in reassessments of $94,745,982. The Board adopted a levy with a tax increase of $17,941,671, a 10.79% change for calendar year 2013 (fiscal year 2014). School Bond Tax digest (net of exemptions) will increase by $524,163,559 to $12,357,637,073 a 4.4% increase (net of exemptions) for calendar year 2013 (fiscal year 2014). This is inclusive of the recently approved Disabled Homestead exemption and Personal Property exemption increase. A 1.25 combined millage change for FY 2014 (see table below): Category FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 Maintenance and Operations General Obligation (GO) Bond Total Real and personal property tax collection rate will be 89% of levy (current & delinquent). This is due to split digest (calendar year versus fiscal year), late payments, appeals, penalties, and interest charges. Tax Commissioner Collection Fee will remain at 1.75% for FY Court System Collection Fee will remain at 1.0% for FY State funding (QBE) amended formula adjustment will be $18,812,811. State on-behalf payments will total $1.3 million in FY Fund balance use by fund: General Fund - $5,467,304 Savannah-Chatham County Public School System 16

17 Explanation of Allocation of Human & Financial Resources Budget Assumptions / Initiatives and Constraints FY Adopted Budget for All Funds Expenditures Pay increases: 1% pay increases for Teachers / Counselors / Media Specialists / Psychologists and Social Workers. Those who are eligible will also receive a Step (longevity) increase effective July 1, % pay increases for Assistant Principals. Those who are eligible will also receive a Step (longevity) increase effective July 1, % pay increase for Principals. Those who are eligible will also receive a Step (longevity) increase effective July 1, % pay increase for Professional and Classified. Those who are eligible will also receive a Step (longevity) increase effective July 1, Teacher vacancies will be filled at the median grade/step. General Fund vacancy factor / position fill variance will be $3.6 million. General Fund Contingency will be $500,000. General Fund Staffing Reserve for 10 th day adjustments will be $1 million. All State required expenditure and staffing tests will be met (funds will not need to be returned to the State Treasury due to failure to meet tests). Cost savings from changes to transportation routing and energy conservation efforts will occur as planned. Fuel and utilities costs do not continue to escalate beyond amounts budgeted. State Merit Health Insurance employer rates will not be adjusted mid-year. Teacher Retirement rates will not increase during the budget year. No extraordinary events will occur during the budget year. Workload Pre-Kindergarten through Grade 12 enrollment will increase by 724 students from 10th day FY 2013 (from 36,543 to 37,177 inclusive of Oglethorpe Academy, Coastal Empire Montessori, Tybee Maritime Academy and Savannah Classical Academy enrollment). Continued implementation of Passport to Excellence to provide our students with a diverse portfolio of educational options which will ensure that our school system is the first choice for families in Savannah-Chatham County. Actual enrollment will occur by site by grade as forecasted. State waiver will maintain current class sizes increase from Kindergarten through Grade 12 of 4 students. Savannah-Chatham County Public School System 17

18 Savannah-Chatham County Public Schools FY Adopted Budget for All Funds Federal sources, 11.23% Revenues by Source State sources, 32.54% Local sources, 56.23% Food service operations, 3.58% Other support services, 0.19% Central support services, 1.02% Maintenance and operations, 4.91% Expenditures by Function Other operations, 0.77% Capital outlay, 14.36% Debt Service, 2.94% Board Contingency, 0.11% Instruction, 53.24% Pupil transportation, 5.40% School administration, 1.19% Business administration, 4.68% General administration, 1.37% Pupil services, 2.40% Improvement of Educational media instruction, 2.56% services, 1.28% Savannah-Chatham County Public School System 18

19 Savannah - Chatham County Public Schools FY Adopted Budget for All Funds Summary by Fund Type Debt Capital Special Internal General Service Projects Revenue Service Fund Fund Funds Funds Funds Totals Revenues Local sources $190,571,232 $500 $79,150,000 $3,077,668 $2,945,880 $275,745,280 State sources 120,872,595-19,290,248 9,461, ,624,232 Federal sources 1,510, ,805,197-58,315,988 Total Revenues $312,954,618 $500 $98,440,248 $69,344,254 $2,945,880 $483,685,500 Other Sources Capital Lease Proceeds Operating transfers in - 11,887, , ,495-12,975,573 TOTAL REVENUES & OTHER SOURCES $312,954,618 $11,887,578 $98,940,248 $69,932,749 $2,945,880 $496,661,073 Expenditures Instruction 207,145, ,009, ,155,071 Pupil services 8,881, ,160,222-11,041,549 Improvement of instruction 3,899, ,881,617-11,781,570 Educational media services 5,896, ,960-5,904,794 General administration 4,684, ,610,821-6,295,193 Business administration 20,934, ,981-21,568,372 School administration 5,494, ,494,629 Pupil transportation 24,806, ,240-24,854,782 Maintenance and operations 22,122, ,210-22,591,107 Central support services 4,685, ,685,491 Other support services 20, , ,601 Food service operations ,486,570-16,486,570 Other operations 614, ,941,380 3,555,899 Capital outlay 4,948,820-61,053, ,000 4,500 66,127,070 Debt Service: - 11,887,578-1,649,470-13,537,048 Board Contingency 500, ,000 Total expenditures $314,635,789 $11,887,578 $61,053,750 $69,932,749 $2,945,880 $460,455,746 Other Uses Operating transfers out 3,786, ,400, ,186,133 TOTAL EXPENDITURES & OTHER USES $318,421,922 $11,887,578 $70,453,750 $69,932,749 $2,945,880 $473,641,879 Use of Fund Balance (5,467,304) - 28,486, ,019,194 Projected Beginning Fund Balance (7/1/ ,833,004 2,361,630 78,116,717 3,332,427 2,158, ,801,930 Fund Balances, End of Year (6/30/2014) 23,365,700 2,361, ,603,215 3,332,427 2,158, ,821,124 Adopted June 26, 2013 Savannah-Chatham County Public School System 19

20 Savannah-Chatham County Public Schools FY Adopted Budget for All Funds District Snapshot FY 2013 Modified Budget FY 2014 Adopted Budget Element FY 2010 Actual FY 2011 Actual FY 2012 Actual Revenues Local 224,342, ,630, ,285, ,197, ,745,280 State 111,685, ,008, ,509, ,198, ,624,232 Federal 63,038,079 58,552,100 51,056,909 56,467,326 58,315,988 Total Revenues 399,066, ,191, ,852, ,863, ,685,500 Other Sources Lease Proceeds Bond Proceeds* Operating Transfers In 29,036,992 25,210,092 12,985,375 10,746,624 12,975,573 Total Revenues/Other Sources 428,103, ,402, ,837, ,610, ,661, ,661, ,000, ,000, ,402, ,000, ,000, ,000, ,000, ,103, ,837, ,610, ,000,000 FY 2010 Actual FY 2011 Actual FY 2012 Actual FY 2013 Modified Budget FY 2014 Adopted Budget Expenditures Salaries 205,798, ,757, ,779, ,918, ,289,628 Benefits 61,439,113 67,876,484 68,865,852 73,432,534 78,421,862 Other Expenditures 134,798, ,062, ,111, ,211, ,744,256 Total Expenditures 402,035, ,696, ,756, ,562, ,455,746 Other Uses Bond Refunding* Operating Transfers Out 29,036,992 25,210,092 12,985,375 10,746,624 12,975,573 Total Expenditures/Other Uses 431,072, ,906, ,742, ,309, ,431, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,072, ,906, ,742, ,309,623 FY 2010 Actual FY 2011 Actual FY 2012 Actual FY 2013 Modified Budget 473,431,319 FY 2014 Adopted Budget Staff Positions 5, , , , ,823.4 Student Enrollment 34,530 35,146 35,808 35,842 36,610 Free/Reduced Lunch Rate 68.69% 62.14% 64.03% 63.85% 64.64% Schools Other Educational Sites Combined Tax Millage Rate Savannah-Chatham County Public School System 20

21 Savannah-Chatham County Public Schools FY Adopted Budget for All Funds Budget Revenues and Expenses beyond Budget Year FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Element Adopted Budget Projection Projection Projection Projection Revenues Local 275,745, ,502, ,287, ,100, ,941,644 State 149,624,232,, 151,120,474,, 152,631,679,, 154,157,996,, 155,699,576,, Federal 58,315,988 58,899,148 59,488,139 60,083,021 60,683,851 Total Revenues 483,685, ,522, ,407, ,341, ,325,071 Other Sources Lease Proceeds Bond Proceeds* Operating Transfers In 29,036,992 29,327,862 29,621,141 29,917,352 30,216,526 Total Revenues/Other Sources 428,103, ,850, ,028, ,259, ,541, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,325, ,341, ,407, ,522, ,685, Expenditures Salaries 205,798, ,914, ,112, ,394, ,762,616 Benefits 61,439, ,053, ,674, ,300, ,933,787 Other Expenditures 134,798, ,146, ,508, ,883, ,271,986 Total Expenditures 402,035, ,114, ,294, ,578, ,968,390 Other Uses Bond Refunding* Operating Transfers Out 29,036,992 29,327,862 29,621,141 29,917,352 30,216,526 Total Expenditures/Other Uses 455,883, ,442, ,915, ,496, ,184, ,000, ,000, ,000, ,000, ,883, ,184, ,496, ,915, ,442, ,000, ,000, ,000, ,000,000 FY 2010 Actual FY 2011 Actual FY 2012 Actual FY 2013 Modified Budget FY 2014 Adopted Budget Staff Positions 4, , , , ,920.6 Student Enrollment 36,610 37,412 37,574 37,662 37,694 Free/Reduced Lunch Rate 64.64% 65.61% 66.59% 62.59% 63.53% Schools Other Educational Sites Combined Tax Millage Rate Savannah-Chatham County Public School System 21

22 Savannah - Chatham County Public Schools FY Adopted Budget Total School Taxes Paid on a Homestead Valued at $150,000 Appraised Value Assessment Ratio Assessed Value S1 Regular Homestead* Net Assessed Value Millage Rate Total School Taxes * Assumes S1 (State Homestead) Exemption Only School Bond Combined $ 150,000 $ 150,000 40% 40% $ 60,000 $ 60,000 (2,000) - $ 58,000 $ 60, $ $ - $ Impact of School Millage Rate Change on a Homestead Valued at $150,000 Appraised Value Assessment Ratio Assessed Value S1 Regular Homestead* Net Assessed Value Millage Change Dollar Impact** * Assumes S1 (State Homestead) Exemption Only ** Assumes no change in Appraised Value School Bond Combined $ 150,000 $ 150,000 40% 40% $ 60,000 $ 60,000 (2,000) - $ 58,000 $ 60, $ $ - $ School Millage Rate and Taxes on a Homestead Valued at $150,000 Calendar Year School Millage Rate Bond Millage Rate Combined Millage Rate School Taxes $ $ $ $ $ Bond Taxes $ - $ - $ - $ - $ - Combined Taxes $ $ $ $ $ $ $ $ $ $ $ $ $ $ Bond Taxes School Taxes $ $ Savannah-Chatham County Public School System 22

23 Savannah - Chatham County Public Schools FY 2014 Adopted Budget Tax Digest and Millage Rates Consolidated School (Maintenance and Operations) Digest CY 2004 CY 2005 CY 2006 CY 2007 CY 2008 (FY 2005) (FY 2006) (FY 2007) (FY 2008) (FY 2009) Real and Personal $ 8,507,109,822 $ 9,619,207,743 $ 11,244,344,033 $ 12,894,532,528 $ 13,958,123,170 Motor Vehicles $ 531,347,580 $ 536,571,680 $ 541,145,780 $ 584,847,980 $ 617,291,700 Mobile Homes $ 27,340,800 $ 27,862,000 $ 28,981,400 $ 23,265,200 $ 24,095,200 Timber $ 2,706,080 $ 1,687,482 $ 1,484,053 $ 2,622,380 $ 1,295,759 Heavy Duty Equip $ 1,245,374 $ 4,343,190 $ 1,178,710 $ 4,642,838 $ 4,841,573 Gross Digest $ 9,069,749,656 $ 10,189,672,095 $ 11,817,133,976 $ 13,509,910,926 $ 14,605,647,402 Less Exemptions (1,460,414,274) (1,702,009,135) (2,089,523,640) (2,453,125,475) (2,636,427,510) Net Digest $ 7,609,335,382 $ 8,487,662,960 $ 9,727,610,336 $ 11,056,785,451 $ 11,969,219,892 Forest Land Assistance Grant Value $ - $ - $ - $ - $ - Adjusted Net Digest $ 7,609,335,382 $ 8,487,662,960 $ 9,727,610,336 $ 11,056,785,451 $ 11,969,219,892 Millage Net Levied 120,821, ,646, ,157, ,528, ,435,423 $ Levy Increase 6,321,245 12,825,714 7,510,610 11,371,000 7,907,067 % Levy Increase 5.52% 10.62% 5.62% 8.06% 5.18% $170,000,000 M & O Net Levied Value $160,000,000 $150,000,000 $140,000,000 $130,000,000 $120,000,000 $110,000,000 $100,000,000 CY 2004 CY 2005 CY 2006 CY 2007 CY 2008 School Bond Digest CY 2004 CY 2005 CY 2006 CY 2007 CY 2008 (FY 2005) (FY 2006) (FY 2007) (FY 2008) (FY 2009) Real and Personal $ 8,507,109,822 $ 9,619,207,743 $ 11,244,344,033 $ 12,894,532,528 $ 13,958,123,170 Motor Vehicles $ 531,347,580 $ 536,571,680 $ 541,145,780 $ 584,847,980 $ 617,291,700 Mobile Homes $ 27,340,800 $ 27,862,000 $ 28,981,400 $ 23,265,200 $ 24,095,200 Timber $ 2,706,080 $ 1,687,482 $ 1,484,053 $ 2,622,380 $ 1,295,759 Heavy Duty Equip $ 1,245,374 $ 4,343,190 $ 1,178,710 $ 4,642,838 $ 4,841,573 Gross Digest $ 9,069,749,656 $ 10,189,672,095 $ 11,817,133,976 $ 13,509,910,926 $ 14,605,647,402 Less Exemptions (893,752,932) (949,456,845) (1,015,847,404) (1,110,580,527) (1,166,109,553) Net Digest $ 8,175,996,724 $ 9,240,215,250 $ 10,801,286,572 $ 12,399,330,399 $ 13,439,537,849 Forest Land Assistance Grant Value $ - $ - $ - $ - $ - Adjusted Net Digest $ 8,175,996,724 $ 9,240,215,250 $ 10,801,286,572 $ 12,399,330,399 $ 13,439,537,849 Millage Net Levied $ 14,079,066 $ 14,146,770 $ 14,106,480 $ - $ - $ Levy Increase 312,273 67,704 (40,290) (14,106,480) - % Levy Increase 2.22% 0.48% -0.29% 0.00% 0.00% Combined Millage Rate CY 2004 CY 2005 CY 2006 CY 2007 CY 2008 (FY 2005) (FY 2006) (FY 2007) (FY 2008) (FY 2009) Maintenance and Operations GO Bond Combined Total GO Bond Maintenance and Operations CY 2004 CY 2005 CY 2006 CY 2007 CY 2008 Savannah-Chatham County Public School System 23

24 Savannah - Chatham County Public Schools FY 2014 Adopted Budget Tax Digest and Millage Rates Consolidated School (Maintenance and Operations) Digest CY 2009 CY 2010 CY 2011 CY 2012 CY 2013 (FY 2010) (FY 2011) (FY 2012) (FY 2013) (FY 2014 Change Real and Personal $ 13,931,316,675 $ 13,287,801,495 $ 12,600,566,459 $ 12,607,971,796 $ 13,003,903,361 $ 395,931,565 Motor Vehicles $ 642,274,660 $ 576,195,090 $ 577,043,990 $ 616,388,070 $ 653,925,150 $ 37,537,080 Mobile Homes $ 23,423,600 $ 23,200,400 $ 22,538,390 $ 27,102,608 $ 27,803,358 $ 700,750 Timber $ 476,054 $ 565,072 $ 1,993,557 $ 1,430,748 $ 503,505 $ (927,243) Heavy Duty Equip $ 7,669,280 $ 7,416,635 $ 4,594,253 $ 2,162,864 $ 1,291,594 $ (871,270) Gross Digest $ 14,605,160,269 $ 13,895,178,692 $ 13,206,736,649 $ 13,255,056,086 $ 13,687,426,968 $ 432,370,882 Less Exemptions (2,455,183,953) (2,045,536,854) (1,882,246,638) (1,885,253,354) (2,082,820,410) $ (197,567,056) Net Digest $ 12,149,976,316 $ 11,849,641,838 $ 11,324,490,011 $ 11,369,802,732 $ 11,604,606,558 $ 234,803,826 Forest Land Assistance Grant Value $ - $ 398,800 $ 398,380 $ 2,149,759 $ 2,181,183 $ 31,424 Adjusted Net Digest $ 12,149,976,316 $ 11,850,040,638 $ 11,324,888,391 $ 11,371,952,491 $ 11,606,787,741 $ 234,835,250 Millage Net Levied 162,858, ,452, ,694, ,383, ,327,396 $ 17,944,359 $ Levy Increase 2,422, ,589,008.0 (1,758,674.0) 662, ,941,176.0 $ 17,278,206 % Levy Increase (0.011) $190,000,000 $180,000,000 $170,000,000 $160,000,000 $150,000,000 $140,000,000 $130,000,000 $120,000,000 $110,000,000 M & O Net Levied Value $100,000,000 CY 2009 CY 2010 CY 2011 CY 2012 CY 2013 School Bond Digest CY 2009 CY 2010 CY 2011 CY 2012 CY 2013 (FY 2010) (FY 2011) (FY 2012) (FY 2013) (FY 2014 Change Real and Personal $ 13,958,123,170 $ 13,931,316,675 $ 13,287,801,495 $ 12,600,566,459 $ 12,607,971,796 $ 7,405,337 Motor Vehicles $ 617,291,700 $ 642,274,660 $ 576,195,090 $ 577,043,990 $ 616,388,070 $ 39,344,080 Mobile Homes $ 24,095,200 $ 23,423,600 $ 23,200,400 $ 22,538,390 $ 27,102,608 $ 4,564,218 Timber $ 1,295,759 $ 476,054 $ 565,072 $ 1,993,557 $ 1,430,748 $ (562,809) Heavy Duty Equip $ 4,841,573 $ 7,669,280 $ 7,416,635 $ 4,594,253 $ 2,162,864 $ (2,431,389) Gross Digest $ 14,605,647,402 $ 14,605,160,269 $ 13,895,178,692 $ 13,206,736,649 $ 13,255,056,086 $ 48,319,437 Less Exemptions (1,281,598,393) (1,209,795,849) (1,340,877,667) (1,423,732,331) (1,331,971,078) 91,761,253 Net Digest $ 13,324,049,009 $ 13,395,364,420 $ 12,554,301,025 $ 11,783,004,318 $ 11,923,085,008 $ 140,080,690 Forest Land Assistance Grant $ - $ 398,800 $ 398,380 $ 2,149,759 $ 2,181,183 $ 31,424 Adjusted Net Digest $ 13,324,049,009 $ 13,395,763,220 $ 12,554,699,405 $ 11,785,154,077 $ 11,925,266,191 $ 140,112,114 Millage Net Levied $ - $ - $ - $ - $ - $ - $ Levy Increase - $ - $ - $ - $ - $ - % Levy Increase 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Combined Millage Rate CY 2009 CY 2010 CY 2011 CY 2012 CY 2013 (FY 2010) (FY 2011) (FY 2012) (FY 2013) (FY 2014 Change Maintenance and Operations GO Bond Combined Total GO Bond Maintenance and Operations CY 2009 CY 2010 CY 2011 CY 2012 CY 2013 Savannah-Chatham County Public School System 24

25 5 Year Enrollment Summary Total Enrollment Site Name FY10 10th Day FY11 10th Day FY12 10th Day FY13 10th Day FY14 Projected Projected Change Projected % Change Elementary Schools 15,093 14,716 15,089 15,595 15, % K-8 3,553 5,230 5,782 5,947 6, % Middle Schools 6,841 6,249 6,071 6,095 6, % High Schools 8,304 8,282 8,143 8,196 8, % Other Educational Programs % Total 34,530 35,146 35,808 36,453 37, % 37,500 37,000 36,500 36,000 35,500 35,000 34,500 34,000 33,500 33,000 FY10 10th Day FY11 10th Day FY12 10th Day FY13 10th Day FY14 Projected Savannah-Chatham County Public School System 25

26 FY10 10th Day Actual FY11 10th Day Actual FY12 10th Day Actual Savannah-Chatham Public Schools Adopted Budget FY2014 Student Enrollment Forecast Beyond Budget Year as of July 1 of each Fiscal Year FY13 10th Projection Projection Projection Projection Projection Projection Grade Day Actual FY14 FY15 FY16 FY17 FY18 FY19 K 3,064 3,185 3,295 3,414 3,366 3,406 3,311 3,314 3,317 3,411 1st 2,927 3,011 3,197 3,236 3,328 3,348 3,375 3,281 3,381 3,302 2nd 2,822 2,866 2,941 3,285 3,235 3,345 3,140 3,245 3,142 3,119 3rd 2,953 2,814 2,885 2,805 3,159 2,921 3,025 3,040 3,033 3,112 4th 2,647 2,870 2,821 2,902 2,833 3,119 2,905 3,012 2,913 2,913 5th 2,714 2,814 2,870 2,777 2,953 2,897 2,906 2,910 2,911 2,901 6th 2,522 2,583 2,731 2,678 2,733 2,805 2,804 2,809 2,810 2,812 7th 2,319 2,490 2,498 2,642 2,568 2,618 2,733 2,641 2,740 2,655 8th 2,323 2,342 2,400 2,498 2,589 2,434 2,542 2,443 2,441 2,441 9th 3,172 3,033 3,113 3,181 3,194 3,124 3,130 3,229 3,226 2,446 10th 2,208 2,163 2,059 2,131 2,188 2,197 2,704 2,511 2,505 3,121 11th 1,845 1,844 1,809 1,697 1,769 1,854 1,745 1,843 1,845 1,835 12th 1,357 1,453 1,373 1,326 1,381 1,506 1,404 1,506 1,514 1,475 PreK 1,222 1,225 1,304 1,327 1,327 1,322 1,330 1,350 1,370 1,402 Self Contained Grand Total 34,530 35,146 35,808 36,453 37,177 37,412 37,574 37,662 37,694 37,493 Gain or (Loss) in (201) Enrollment from Prior Year #REF! 1.92% 1.84% 1.95% 0.63% 0.43% 0.24% 0.08% -0.54% Notes: 1. Projected 2014 Grades 1-12 enrollment based on Cohort Survival Method 2. Projected 2014 Grade K based on birth rates 3.The realiablity is estimated to be 2% 4. Projected Year was calculated using the trend method. The trend method returns values along a linear trend. Fits a straight line (using the method of least squares) to known values specified. Student Enrollment Forecast Beyond Budget Year 38,000 37,500 37,000 36,500 36,000 35,500 35,000 34,500 34,000 33,500 33,000 32,500 FY10 10thFY11 10thFY12 10thFY13 10thProjectionProjectionProjectionProjectionProjectionProjection Day Actual Day Actual Day Actual Day Actual FY14 FY15 FY16 FY17 FY18 FY19 Savannah-Chatham County Public School System 26