FULTON COUNTY SCHOOL SYSTEM FY2010 PUBLIC BUDGET REPORT

Transcription

1 FULTON COUNTY SCHOOL SYSTEM FY2010 PUBLIC BUDGET REPORT Superintendent s Final Budget As of June 18, 2009

2 BUDGET MESSAGE FULTON COUNTY SCHOOL DISTRICT CINDY LOE, SUPERINTENDENT June 18, 2009 EXECUTIVE SUMMARY Dear Fulton County Citizens, On June 18, 2009, the Fulton County Board of Education gave final approval to an $856.4 million budget for the school year. The general budget reflects a 3.2% increase from last year, primarily in order to accommodate additional capital project needs. As has been reported and discussed at various budget workshops, public hearings, and community meetings, this year s budget was extremely difficult. With the economic conditions worsening, the state austerity reductions (that started in FY2003 when the State of Georgia was experiencing bad economic conditions) were still included in the FY2010 state QBE revenue. While the 2010 austerity reductions amount is larger than it was last year, the cumulative amount of state QBE reductions for FY is approximately $107.8M for Fulton County Schools. In addition to the austerity reductions, the local fair share for FY2010 surprisingly decreased by approximately $470K or -0.32% less than the FY2009 level. State shortfalls represent big challenges that restrict the ability of Fulton County School System in meeting all the various and diverse needs of our growing school system, not only for this year but for the years to come also. The funds from the American Recovery and Reinvestment Act (ARRA), also known as stimulus funds, are included in this budget. The FY2010 final budget as presented to the public and as approved by the Board on June 18, 2009, represents not only an expenditure plan, but also an investment plan for Fulton County School System, its students, employees, parents, tax payers, and the community-at-large. The driving force behind this budget is Fulton County School System s mission statement, Where Students Come First. The budget also mirrors Fulton County School System s vision, beliefs, values, and strategic planning objectives and priorities as set forth by the Board of Education. Transmittal Letter Page 1 of 4

3 In order to balance the budget, the Board, Superintendent, and staff reviewed all programs and services, and had to make difficult but necessary decisions regarding which programs or services (mainly those funded with local dollars) to keep during the fiscal year Local support for schools continues The Fulton School System has a history of providing significant resources to local schools above what is provided by the state. That tradition continues in FY 2010, for example: - Approximately 46% of funds associated with the English to Speakers of Other Languages (ESOL) program are provided by the school system. This includes 87 ESOL positions above the state allotment. - Special education services in Fulton for are budgeted at $104.5 million with 50.8% coming from local taxpayers. - In , Fulton will spend more than $40.1 million in the areas of elementary art, music, and physical education and middle physical education and foreign language programs. Of this amount, only $14.3 million, or 36% is provided by the state. - Fulton fully funds programs such as high school SAT preparation, International Baccalaureate, magnet schools, after-school sweep buses, and transportation for summer school and extended learning program. - Locally funded personnel include 50 additional media specialists and paraprofessionals, 20 additional counselors; 13 cluster nurses; 86.5 additional social workers, instructional support teachers and psychologists; 19 technology specialists; 43 middle and high school remedial teachers; and 21 high school teacher/administrative assistants. Almost 66% of our total budget comes from local funds. We are fortunate in Fulton in that our Board and community support our programs and our efforts to maintain high levels of service. This financial commitment to education is one of the reasons why we are among the nation s best school districts. As a result of this financial commitment, all Fulton class sizes, as recommended by the Superintendent 2010 balanced budget, are lower than the state maximum class sizes as shown below. Transmittal Letter Page 2 of 4

4 Student: Teacher Ratios Grade State Max. Fulton Avg. Kindergarten 22:1 19:1 Grades :1 20:1 Grades :1 25:1 Grades :1 25:1 Grades :1 24:1 Before adopting the fiscal year final millage rates in August, the Board, Cabinet, and staff community leaders made sure that adequate resources would be provided to our schools, but at the same time without creating an additional burden to local taxpayers. After several meetings, discussions, and three additional public hearings on millage rates, the Board decided to keep the FY09 total millage rate of the same however, shifting the bond millage rate of to maintenance and operations (from to ) to provide funding for additional capital project needs. As a result, the owner of a $100,000 or $200,000 home can expect to see no increase in school taxes for FY09-10, except an increase that may result from reassessments and the elimination of the homestead exemption. Fulton s millage rate still remains one of the lowest in the metropolitan Atlanta area. School Millage Rates for FY2010 DeKalb Gwinnett Cobb Clayton Fulton Forsyth GENERAL COMMENTS The FY2010 Budget was developed utilizing a long-term approach. Administration has reviewed the previous year s budgets and has also estimated the future year s budgets in an effort to strategically view academic programs and school district finances. Significant constraints have been placed on both revenues and expenditures in the FY2010 Budget. Revenue for the Fulton County School District has two major components: State of Georgia QBE (Quality Basic Education) formula revenue and local property tax revenue. Transmittal Letter Page 3 of 4

5 State of Georgia (QBE) Revenue The State of Georgia provides approximately 32% of Fulton s revenue from predetermined formulas. The revenue related to these formulas is calculated based on the total number of students. Control of this revenue is assured through verification of student population counts which are conducted throughout the school year. Local Property Tax Revenue Local Property Tax Revenue generates approximately 64% of Fulton s revenue. The value of property in Fulton is taxed using a tax rate called millage (1/1000). The Board of Education is responsible for setting this millage tax rate each year. Taxpayers in Fulton have enjoyed one of the lowest school millage rates when compared to the other large school districts in Metro Atlanta during this time period and in keeping with the Board s commitment to taxpayers, the FY2010 budget will reflect no increase in the total millage rate; some property owners, however, may have a slight increase in taxes due to reassessments and the elimination of the homestead exemption. The school district continues to face major challenges in the next several years, which must be addressed in order for funds to be available to support our teachers and our increased student growth. A summary of these challenges are listed below: 1. Lower percent of State funding with higher percent of local funding 2. State local fair share increase 3. Economic Slowdown 4. High unemployment rate 5. Housing Market Crisis 6. Digest growth and digest reassessment 7. Digest exemptions and appeals The fiscal year Budget was developed using an open, transparent, and all inclusive process seeking input, at different stages of the budget development, from Board, staff, parents, principals, and community at large. Extreme caution was used in preparing the FY2010 Budget so that vital programs would remain intact. Final budget reflects the mission of the Fulton County School System, Where Students Come First. The mandates for improving education services coupled with the rapid growth of student population place significant challenges upon the budget to maintain spending control with limited funds. The final budget is a prudent plan that balances the many needs of our diverse students with the economic realities of our community. We believe that this budget demonstrates the school system s continued emphasis on student achievement and on sound fiscal management. This will always be our commitment to our students and to our taxpayers. We look forward to your discussion of and support for the fiscal year 2010 budget. Sincerely, Cindy Loe Superintendent Transmittal Letter Page 4 of 4

6 General Fund Mission Statement & Long-term Planning Objective The Superintendent s FY2010 final budget presented to the public on June 18, 2009, represents not only an expenditure plan, but also an investment plan for Fulton County School System, its students, employees, parents, tax payers, and the community-at-large. The driving force behind this budget is Fulton County School System s mission statement, Where Students Come First. The budget also mirrors Fulton County School System s vision, beliefs, values, and strategic planning objectives and priorities as set forth by the Board of Education. Our Vision is that the Fulton County School System is a place where all children learn to their full potential in a safe, nurturing environment supported by involved and committed staff, family, and community who help prepare students for a successful future. Our Beliefs are Student learning is the primary focus of our school system. All students can learn. Quality staff is imperative for student achievement. Behaviors that convey high expectations lead to greater success. Successful schools maintain partnerships among the home, school, and community. School must prepare students for the changing future. Our Values are Trust and Honest Communication Common Understanding Personal Responsibility Commitment Results Stakeholder Participation Competence Continual Improvement Our Management System Strategic Planning Leadership Student and Stakeholder Focus Educational and Support Process Management Human Resources Performance Results Information Analysis Communication Our Performance Measurement Tool: Balanced Scorecard Student Achievement Stakeholder Involvement and Satisfaction Efficient and Effective Instructional and Administrative Processes Staff Learning and Growth Financial Performance 1

7 FY2010 HIGH LEVEL PRELIMINARY COMBINED BUDGETS (*) All Funds The final total combined budget for FY2010 is approximately $1,134.4M representing a decrease of 7.7% from last year total as shown below: Dollar Funds Comprising the FY2009 FY2010 Change Percentage Total Budget (In Millions) (In Millions) (In Millions) of Change General Fund (**) $ $ $ % Special Revenue Fund % Debt Service Fund (17.6) (41.8) % School Nutrition Service Fund (0.8) (1.9) % Capital Program Fund (137.3) (52.8) % Total (*) $ 1,229.0 $ 1,134.4 $ (94.6) (7.7) % (*) The combined budget figures are presented here as a memorandum only. While for informational purposes only, this combined statement shows total budget amounts for all funds. Since this statement presents mixed types of funds, data presented here is not comparable to a consolidation because inter-fund eliminations have not been made. (**) The General Fund budget excludes on-behalf payments. 2

8 Revenue Fulton County School System Revenue Summary FY2010 Final Budget for June 18, 2009 General Fund Debt Service Fund Special Revenue Fund School Nutrition Fund Capital Projects Fund I. Tax Revenue A. Property Taxes 478,176, ,605,548 31,737, ,914, ,605,548 B. Motor Vehicle Taxes 25,840,023 25,000,000 25,840,023 25,000,000 C. Railroad Car Taxes 100, , , ,000 D. Intangible Taxes 6,205,024 6,500,000 6,205,024 6,500,000 E. Real Estate Transfer Taxes 1,922,889 1,750,000 1,922,889 1,750,000 F. Sales Taxes 161,817, ,811, ,817, ,811,769 G. Other Taxes - - H. Transfer-In - - I. SPLOST Sub-Total 512,244, ,955,548 31,737, ,817, ,811, ,799, ,767,317 Summary 3

9 Revenue Fulton County School System Revenue Summary FY2010 Final Budget for June 18, 2009 General Fund Debt Service Fund Special Revenue Fund School Nutrition Fund Capital Projects Fund II. Other Local Revenue A. Virtual Campus E-Commerce Tuition 84,545 50,000 84,545 50,000 B. Out of District Tuition 553, , , ,000 C. Regular Program Tuition 50,000 50,000 50,000 50,000 D. Staff Development Workshop Tuition 22,475 22,475 22,475 22,475 E. Summer School Tuition 514, , , ,897 F. Rental- After School Program 845, , , ,000 G. Other Local Facilities Rental 150, , , ,000 H. Sales/SVC to Other LUA 960, , , ,000 I. Other Local Miscellaneous 720, , , ,000 J. Other Local Insurance & Other Loss 90,000 90,000 90,000 90,000 K. Field Trips 750, , , ,000 L. Sale of Equipment Including Buses 40,000-40,000 - M. Lease for Commun Network Facilities 824, , , ,000 N. Donations/Contribution 178, , , ,000 O. Salary Reimbursements 908, , , ,000 P. Federal Indirect Reimbursement 497, , , ,653 Q. E-Rate Program Reimbursement 1,200,200 1,650,000 1,200,200 1,650,000 R. Transp. Reimbursement - Charter Schools - - S. Other Sources 230, , , ,978 T. Interest 3,341,278 2,900, , , ,000 75,000 3,571,868 1,940,227 7,481,058 5,343,907 U. Sale of Breakfast/Lunch 6,453,848 9,663,631 6,453,848 9,663,631 V. Non-Reimbursable Sales 9,021,457 9,513,150 9,021,457 9,513,150 W. BROAD Residency Grant 43,212 43,212 43,212 43,212 X. Bus Driver Road-e-o 2,500 5,000 2,500 5,000 Y. Georgia Council for the Arts 6,571 6,571 6,571 6,571 Z. Michigan State Univ. & FCSS Partnership 141, , , ,100 AA. ARCH Educational Network 216, ,888 - BB. Sale of Equipment Excluding Buses 25,000-25, Sub-Total 11,960,088 10,981, , , , ,883 15,740,305 19,251,781 3,571,868 1,940,227 31,985,444 32,797,574 Summary 4

10 Revenue Fulton County School System Revenue Summary FY2010 Final Budget for June 18, 2009 General Fund Debt Service Fund Special Revenue Fund School Nutrition Fund Capital Projects Fund III. State Revenue A. FTE Earnings 413,875, ,149, ,875, ,149,733 B. Local Fair Share (5 Mills) (148,954,055) (148,484,365) (148,954,055) (148,484,365) C. Transportation 5,241,621 5,006,249 5,241,621 5,006,249 D. Graduation Coach 1,384,644-1,384,644 - E. Austerity Reduction (12,480,965) (27,552,100) (12,480,965) (27,552,100) F. Bus Replacement 993, , , , QBE Sub-Total 260,060, ,113, ,060, ,113, G. State of Georgia- DOE Grants 1,227,574-1,227,574 - H. Funds from Other State Agencies 41,194 41,194 - I. State of GA Supervising Tchrs Supp. 13,000-13,000 - J. Medicare Reimbursement 33,625 - K. Ace Medicaid Recovery 600,000 - L. Meals Reimbursement 1,252,697 1,324,512 1,252,697 1,324,512 M. Childcare/Parenting Program - - N. DHR - Youth Initiative 63,722 50,000 63,722 50,000 O. Virtual Schools State Grant 3,075 8,425 3,075 8,425 P. Charter Schools 72, ,307 72, ,307 Q. Career Technology 683,364 1,170, ,364 1,170,946 R. State Capital Outlay 35,736,373 20,512,363 35,736,373 20,512,363 S. Pre-Kindergarten Program 7,372,845 7,118,907 7,372,845 7,118,907 T. Special Education Grant: Pre-School 1,341,196 1,592,582 1,341,196 1,592,582 U. Special Education Grant: Residential - - V. Local Assistance - GADCA 25,000 25,000 - W. Homestead Credit X. Svcs/Tuition for Multi-handicapped 182, , , ,541 Y. Other - 500, ,000 Sub-Total 264,258, ,900, ,461,567 7,168,907 1,252,697 1,324,512 35,736,373 20,512, ,075, ,905,851 Summary 5

11 Revenue Fulton County School System Revenue Summary FY2010 Final Budget for June 18, 2009 General Fund Debt Service Fund Special Revenue Fund School Nutrition Fund Capital Projects Fund IV. Federal A. JROTC 663, , , ,779 B. Meals Reimbursement 17,829,432 20,096,387 17,829,432 20,096,387 C. Title I 11,977,544 17,233,417 11,977,544 17,233,417 D. Title I - (ARRA) Allocations 20,244,853-20,244,853 E. Schoolwide School Program 8,032,146 8,032,146 - F. Title II 1,374,097 3,096,561 1,374,097 3,096,561 G. Title III 1,091,970 1,097,620 1,091,970 1,097,620 H. Title IV 277, , , ,859 I. Title V 6,389 6,389 - J. Title VI 16,844,104 16,945,430 16,844,104 16,945,430 K. Title VI - IDEA ARRA Allocations 16,520,283-16,520,283 L. Title VI - Pre-K Stimulus 550, ,188 M. Beat The Traffic 183,703 95, ,703 95,503 N. Education for Homeless Children 56,228 45,961 56,228 45,961 O. Learn and Serve America 20,000 17,000 20,000 17,000 P. Professional Development Schools 54,999 54,999 54,999 54,999 Q. Safety Street Georgia 56,390 56,390 56,390 56,390 R. Smaller Learning Communities 1,389, ,406 1,389, ,406 S. Students Against Destructive Decisions 27,800 33,992 27,800 33,992 T. Teaching American History 327, , , ,409 U. Career Technology 714, , , ,420 V. Charter School Implementation 800, , , ,100 W. Value Commod Recd (USDA) 1,466,192 1,593,078 1,466,192 1,593,078 X. Physical Education Program (PEP) 247, ,950 - Y. Stimulus 16,941,725-16,941,725 Sub-Total 663,779 17,605, ,482,843 79,003,390 19,295,624 21,689, ,442, ,298,360 Summary TOTAL REVENUES (I - V) 789,127, ,442,124 32,040, ,680 51,354,681 86,368,180 36,288,626 42,265, ,125, ,264,359 1,109,937,181 1,131,769,102 TRANSERS IN 18,051,177 24,572,269 2,146,338 2,104,207 13,500,000 24,500,000 33,697,515 51,176,476 BEGINNING FUND BALANCE 111,855,925 83,565,164 16,862,178 42,867, ,697, ,604-7,443,976-52,904, ,972,061 74,388,286 TOTAL FUNDS AVAILABLE 900,983, ,007,288 66,954,108 67,868,936 53,501,018 88,472,387 43,986,560 43,125, ,181, ,859,890 1,272,606,756 1,257,333,865 PROJECTED EXPENDITURES 803,917, ,772,109 24,126,737 24,572,269 53,501,018 88,472,387 43,126,956 42,265, ,035,238 98,272,704 1,166,707,909 1,083,355,208 TRANSFERS OUT 13,500,000 26,670,015 18,000, ,051,177 24,572,269 49,551,177 51,242,284 PROJECTED ENDING FUND BALANCE 83,565,164 83,565,164 24,827,370 43,296, , ,624-52,904,469-4,985,083 56,347, ,736,372 TOTAL EXPENDITURES & ENDING FB 900,983, ,007,288 66,954,108 67,868,936 53,501,018 88,472,387 43,986,560 43,125, ,181, ,859,890 1,272,606,756 1,257,333,864-6

12 All Funds Funds Comprising FY2010 Final Budget General Fund 75.5% Capital Program 10.8% Debt Service 2.2% School Nutrition 3.7% Special Revenue 7.8% 7

13 All Funds Where Does Fulton County School's Funding (All Funds) Come From? Local Revenue 63.7% Federal Revenue 8.8% State Revenue 27.5% 8

14 General Fund FY09 Revised Revenue Summary Where does the money come from? Local Sources 66.5% All Other 0.9% State Sources 32.6% FY10 Revenue Summary Where does the money come from? Local Sources 65.6% All Other 2.1% State Sources 32.3% 9

15 LOCAL REVENUE Local revenue contributes approximately 66.0% of the Fulton County School System's revenue. The following are the major local revenue categories: Value of a Mill in Fulton County The property tax digest in Fulton County consists of Real Property, Public Utilities, Motor Vehicles, Mobile Homes and Timber Property. A millage rate is applied to 40% of the Fair Market Value of the Fulton County property digest. Property Taxes - Taxes levied on real and personal property, based on values assessed as of January 1 each year. FY2010 Property Tax revenue is based on a millage levy currently of mills. A homeowner would pay $ per $1,000 of 40%-assessed value, as explained below. How your School Taxes are calculated The following is an example of how FY2010 Fulton County School Taxes are calculated for a $250,000 home: M & O Millage Item $250,000 House assessed at Fair Market Value X.40 40% Assessment Rate $100,000 Assessed Value for Tax Purposes ($2,000) Homestead Exemption $98,000 Tax Base for Property Tax X mills Millage Rate $1, M & O School Taxes 10

16 LOCAL REVENUE - Continued General Fund Description of Local Tax Revenues : FY2010 Budget 1. Property Taxes taxes levied on real and personal property, based on values assessed as of January 1 each year Property Taxes $517,705,548 Automobiles Ad Valorem $25,000, Intangible Property Taxes $6,500, Real Estate Transfer Tax tax imposed on the transfer of real estate located within Fulton County $1,750,000 Total Local Taxes (A) $550,955,548 Description of Other Local Revenues: FY2010 Budget 1. Interest Income funds collected as interest on school system investments $2,900, Tuition and Fees summer school, out of district regular tuition, staff development tuition $1,568, Miscellaneous Revenue funds collected for rental of facilities and other miscellaneous revenues $6,512,631 Total Other Local Revenues (B) $10,981,003 Total All Local Revenues (A+B): $561,936,551 11

17 General Fund GENERAL FUND WHERE THE MONEY COMES FROM & HOW THE MONEY IS SPENT FY2010 WHERE THE MONEY COMES FROM BUDGET BEGINNING MONEY IN THE BANK $83,565,164 LOCAL SOURCES INCLUDES PROPERTY TAXES, REAL ESTATE TRANSFERS, ETC. $550,955,548 STATE SOURCES QUALITY BASIC EDUCATION FUNDING FROM THE STATE OF GEORGIA $276,900,069 FEDERAL SOURCES ROTC INSTRUCTION SALARY REIMBURSEMENTS $17,605,504 TRANSFERS AND OTHER LOCAL REVENUES $10,981,003 TOTAL CURRENT SOURCES $856,442,124 TOTAL MONEY AVAILABLE $940,007,288 HOW THE MONEY IS SPENT INSTRUCTION $542,505,402 PUPIL SERVICES $31,796,384 IMPROVEMENT OF INSTRUCTIONAL SERVICES $17,425,803 EDUCATIONAL MEDIA SERVICES $13,196,587 GENERAL ADMINISTRATION $2,466,384 SCHOOL ADMINISTRATION $53,399,141 SUPPORT SERVICES - BUSINESS $16,501,613 OPERATION AND MAINTENANCE $77,503,138 STUDENT TRANSPORTATION $45,739,251 SUPPORT SERVICES - CENTRAL $14,059,378 OTHER SUPPORT SERVICES $15,179,028 CONSTRUCTION AND CAPITAL EXPENDITURES $24,500,000 TRANSFERS $2,170,015 TOTAL SPENDING $856,442,124 ENDING MONEY IN THE BANK $83,565,164 TOTAL SPENDING & ENDING MONEY IN THE BANK $940,007,288 12

18 General Fund Summary of Millage Rate History (by Tax Year) (*) State QBE Tax (**) Maintenance & Operations Subtotal Debt Service (***) Total Millage Levied (Required) **** * Draft for planning and budgeting purposes only. ** 5 Equivalent Mills Local Fair Share (LFS), also known as "Local Five Mills". *** Starting in 1997 tax year, Debt Service millage rate was reduced one-half mill using Special Purpose Local Option Sales Tax (SPLOST I) revenues as approved by the voters on March 18, Then from 1999 up to the current year, the Board decreased the debt service millage rate almost every year. **** Tax year 2009 was approved by the Board for final adoption. The debt service millage rate, , was transferred to general fund,

19 FULTON COUNTY SCHOOLS Total Millage Rate Comparisons FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 Approx. Value of 1 Mill DeKalb $25.0M Gwinnett $29.9M Cobb $25.0M Fulton $29.5M Atlanta $23.8M 14

20 General Fund Major Categories of Expenditures Where does the money go? FY2009 Personnel 85% 15% Non-Personnel FY2010 Personnel 84% 16% Non-Personnel 15

21 General Fund Expenditures Summary by Function Where does the money go? Student Transportation Services 5.3% $45,778,369 School Administration 6.2% $53,244,587 Support Services - Central 1.6% $14,090,023 Transfers to Other Funds 3.1% $26,670,015 Administration 2.3% $19,264,125 Maintenance & Operation of Plant Services 9.2% $78,780,022 Other Support Svcs 1.8% $15,215,041 (*) The percentage breakdown of expenditures by function for Instructional Services is as follow: Fct Instruction, 63.2%; Fct Pupil Services, 3.7%; Fct Improvement of Instructional Services, 1.9%, and Fct Educational Media Services, 1.7%. Note: Figures are rounded up to the tenth decimal place. Direct Instruction 70.5% $603,399,942 Total Proposed Expenditures: $856,442,124 16

22 General Fund FINAL BUDGET BY FUNCTION - FY09 vs. FY10 % of % of Function Description FY09 Budget Total Budget FY10 Budget Total Budget 1000 Instruction $ 557,269, % $ 540,862, % 2100 Pupil Services 29,747, % 31,812, % 2210 Improvement of Instruction 20,022, % 16,608, % 2220 Educational Media Services 14,134, % 14,116, % 2300 General Administration 1,261, % 2,473, % 2400 School Administration 51,959, % 53,244, % 2500 Support Services - Business 13,486, % 16,790, % 2600 Maintenance and Operation of Plant Services 72,243, % 78,780, % 2700 Student Transportation Service 46,465, % 45,778, % 2800 Support Services - Central 15,194, % 14,090, % 2900 Other Support Services 14,861, % 15,215, % 5000 Transfers to Other Funds 20,741, % 26,670, % Total $ 857,388, % $ 856,442, % 17

23 STATE REVENUE How it is earned by the Fulton County School District The State of Georgia contributes approximately 32.0% of the Fulton County School System's Revenue. The State of Georgia uses a funding formula called the Quality Basic Education Act. QBE Funding Formula Summary 1. Full-Time Equivalent - The funding formula utilizes a concept called Full-Time Equivalent (FTE). The State of Georgia allocates funds to school districts based on their number of full-time students. Fulton County reports enrollment during each school year to the State of Georgia. Each school day is divided into six parts and the student is counted six times. Students in the following programs or situations may not be counted for the portion of the day that they are in them: Study Hall Serving as a Student Assistant Non-credit Courses Etc. EXAMPLE: A student taking the following items in school is counted as 5/6 FTE instead of 1 FTE: Item # Items FTE Math 1 1 English 1 1 Social Studies 1 1 Science 1 1 Study Hall 1 0 Literature 1 1 Total Program Weights - Since different programs (kindergarten, primary grades 1-3, middle school grades 6-8, etc) vary in their cost of operation, each program is assigned a program weight. The Governor is authorized to appoint a task force every three years to recommend to the General Assembly any needed changes in the program weights. The following are the FY2010 Program Weights: Programs Weights Total Per FTE Cost Programs Weights Total Per FTE Cost Kindergarten $4, Remedial $3, Kindergarten EIP $5, Alternative $4, Grades $3, ESOL $6, Grades 1-3 EIP $4, Special Ed Cat I $6, Grades $2, Special Ed Cat II $7, Grades 4-5 EIP $4, Special Ed Cat III $9, Grades $2, Special Ed Cat IV $15, Middle School $3, Special Ed Cat V $6, Grades $2, Gifted $4, Vocational Lab $3,

24 STATE REVENUE - Continued 3. Training & Experience - The State of Georgia allocates additional funds to school districts to adjust for varying levels of teacher education and years of experience. This Training and Experience Factor (T & E) is based on an annual report made by the Fulton County Personnel Department and therefore, will be different for each school system. For FY2010, Fulton County s T & E is %. 4. Local Five Mill Share - The Local Share for each local system is an amount of money equal to the amount that can be raised by levying five (5) mills on the forty (40) percent equalized property tax digest. Each local system will receive an amount of State funds that is the QBE program cost for the system MINUS the Local Share Amount. Fulton County's Local Share contributions have steadily increased over the past ten years. The amounts below are deducted from the State revenue received by Fulton County. Base Amount - Standard Cost per Student amount established by the State of Georgia. The base amount for FY2010 is $2, per student. YEAR LOCAL SHARE 1997 $ 53,264, $ 55,050, $ 68,902, $ 72,639, $ 80,676, $ 91,814, $103,502, $114,109, $114,855, $119,837, $130,068, $137,142, $148,954, $148,484,367 QBE Formula To determine the Total State funds for a specific school system, the following formula is used: FTE Count X Program Weight X Base Amount X Training & Experience Factor Local Five Mill Share = QBE State Funds These cuts are above and beyond the local fair. Because of the decline in state revenues, the Governor made additional cuts to the net amount due to the school districts in Georgia (austerity reduction). The amounts of FY03 through FY10 additional cuts for Fulton County School District were respectively $6,100,110, $12,824,008, $15,059,439, $15,059,303, $8,124,205, $6,939,915, $20,863,951, and $27,552,100. The cumulative amount of the state austerity reduction to Fulton County School System from FY03-FY10 total approximately $112.5 million. Net QBE amount to be received from the State = QBE state funds austerity reduction. 19

25 STATE REVENUE - Continued The Fulton County School District receives a portion of its revenue from the State government. The following is a listing of the various State revenue types: Description of Selected Major State Revenue Categories: FY2010 Budget 1. QBE Gross Earnings $454,967, Local Fair Share $(148,484,367) 3. QBE State Funds (1) (2) $306,482, Austerity Reduction $(27,552,100) 5. Net QBE Amount (3) (4) $278,930,550 20

26 21

27 Student Enrollment Growth and Impact on Five-Year Budget Forecast 110, , ,000 95,000 90, % 2.5% 2.2% 1.7% 1.8% 1.8% 2.4% 85, % 80,000 75,000 70, % 1.5% 2.3% 2.4% 3.4% 6.8% 65,000 60,000 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Enrollment 67,097 68,707 69,709 71,290 73,036 75,533 80,659 83,721 85,998 88,134 90,104 91,610 93,232 94,903 97,179 22

28 Multi-Year FTE History and Trend 120, , ,000 90, % 2.9% 2.2% 2.2% 1.6% 1.8% 1.8% 2.4% 80,000 70, % 1.5% 2.4% 2.5% 3.6% 5.9% 60,000 50,000 40,000 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FTE Growth 64,837 67,659 68,689 70,362 72,142 74,756 79,197 83,111 85,526 87,429 89,352 90,782 92,416 94,080 96,338 23

29 Comparison Between FTE Student Enrollment Gap 100,000 95,000 90,000 85,000 80,000 75,000 70,000 65,000 60,000 55,000 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Enrollment 67,097 68,707 69,709 71,290 73,036 75,533 80,659 83,721 85,998 88,134 90,104 91,610 93,232 94,903 FTE 64,837 67,659 68,689 70,362 72,142 74,756 79,197 83,111 85,526 87,429 89,352 90,782 92,416 94,080 Enrollment FTE 24

30 Fulton County Schools State Austerity Reductions $120,000,000 $100,000,000 FY10 $27,552,100 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $- $112,523,031 FY09 $20,863,951 FY08 $6,939,915 FY07 $8,124,205 FY06 $15,059,303 FY05 $15,059,439 FY04 $12,824,008 FY03 $6,100,110 25

31 FULTON COUNTY BOARD OF EDUCATION QBE HISTORY LOCAL FAIR SHARE Year LFS $ Change Change FY87 $ 17,630,470 N/A N/A FY88 28,691,111 $ 11,060, % FY89 34,100,929 5,409, % FY90 38,098,333 3,997, % FY91 41,951,163 3,852, % FY92 47,897,000 5,945, % FY93 47,864,544-32, % FY94 47,995, , % FY95 53,790,440 5,794, % FY96 54,000, , % FY97 53,264, , % FY98 55,050,097 1,785, % FY99 68,902,433 13,852, % FY00 72,639,716 3,737, % FY01 80,676,952 8,037, % FY02 91,814,395 11,137, % FY03 103,502,568 11,688, % FY04 114,109,045 10,606, % FY05 114,856, , % FY06 119,837,263 4,980, % FY07 130,068,762 10,231, % FY08 137,142,161 7,073, % FY09 148,954,056 11,811, % FY10 $ 148,484,367 $ -469, % The Local Fair Share (LFS) also known as "local five mills", is a method used by the State of Georgia to obtain funds from large and prosperous school systems to assist in the funding of smaller and less prosperous school systems. The LFS for each local system is an amount of money equal to the amount that can be raised by levying five (5) mills on forty (40) percent equalized property tax digest. The net state funds received by the school system are equal to the QBE program earnings for that system minus the Local Fair Share amount. Because of the decline in state revenues that started in FY03, the Governor made each year, additional cuts to the net amount due to the school districts in Georgia (austerity reductions). From FY03 to FY10, additional cuts for Fulton County School District were respectively $6,100,110, $12,824,008, $15,059,439, $15,059,303, $8,124,205, $6,939,915, $20,863,951, and $27,552,100. The cumulative amount of the state austerity reductions to Fulton County School System from FY03 - FY10 total is approximately $112.5 million. These "lost" funds are cut from Fulton County School System, although they are fully earned by the district. 26

32 Local Fair Share Tax History $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $- FY88 FY89 FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY88 $ 28,691,111 FY89 $ 34,100,929 FY90 $ 38,098,333 FY91 $ 41,951,163 FY92 $ 47,897,000 FY93 $ 47,864,544 FY94 $ 47,995,662 FY95 $ 53,790,440 FY96 $ 54,000,000 FY97 $ 53,264,900 FY98 $ 55,050,097 FY99 $ 68,902,433 FY00 $ 72,639,716 FY01 $ 80,676,953 FY02 $ 91,814,395 FY03 $103,502,568 FY04 $114,109,045 FY05 $114,856,875 FY06 $119,837,263 FY07 $130,068,762 FY08 $137,142,161 FY09 $148,954,056 FY10 $148,484,367 27

33 General Fund FEDERAL REVENUE The Fulton County School District receives a small portion of its general fund revenue from the federal government. The following is a listing of the federal revenue types as received in the General Fund. All revenue from federal grants (Title I, Title IIA, Title III, etc.) is included in the Grants/Special Revenue Fund. Description of Federal Revenue: FY2010 Budget ROTC Revenue The Federal government pays a portion of the cost of ROTC instructors $663,779 Stimulus Stabilization Funds $16,941,725 Total Federal Revenue $17,605,504 28

34 Special Revenue Fund SPECIAL REVENUE FUND SUMMARY WHERE THE MONEY COMES FROM & HOW THE MONEY IS SPENT 2010 WHERE THE MONEY COMES FROM BUDGET BEGINNING MONEY IN THE BANK $0 SOURCE CATEGORIES LOCAL SOURCES STATE SOURCES $7,168,907 FEDERAL SOURCES $78,937,583 TRANSFERS AND OTHER LOCAL SOURCES $2,365,897 TOTAL SOURCES $88,472,387 TOTAL MONEY AVAILABLE $88,472,387 HOW THE MONEY IS SPENT SPENDING CATEGORIES INSTRUCTION $61,814,516 PUPIL SUPPORT SERVICES $5,005,694 IMPROVEMENT OF INSTRUCTION $16,027,012 GENERAL ADMINISTRATION $169,190 SCHOOL ADMINISTRATION $2,340,269 MAINTENANCE & OPERATIONS $0 STUDENT TRANSPORTATION $734,932 CENTRAL SUPPORT SERVICES $59,506 OTHER SUPPORT SERVICES $2,321,268 FACILITIES ACQUISITION AND CONSTRUCTION $0 TRANSFERS OUT AND OTHER OUTLAYS $0 TOTAL SPENDING $88,472,387 ENDING MONEY IN THE BANK $0 TOTAL SPENDING & ENDING MONEY IN THE BANK $88,472,387 29

35 Special Revenue Fund SPECIAL REVENUE FUNDS The primary purpose of Special Revenue Funds is to account for programs funded by federal, state, and local grant monies. Federal and state programs are budgeted at the previous year's level of funding and may be adjusted when the actual funding level is approved. FY2010 FUND DESCRIPTION BUDGETED EXPENDITURES Title I-A American Recovery and Reinvestment (ARRA) Allocations Fund 402 $34,144,293 To create jobs in the short run and make needed investments for the long term and improve student achievement through school improvement and reform. Title I A Improving the Academic Achievement of the Disadvantaged - Fund 402 $20,334,471 Provides additional funding for educational services to disadvantaged children. Title I A School Improvement Fund ,977 Provides instructional materials and special staffing to assist students performing below academic standards. Title II-A Improving Teacher Quality Fund 414 $2,788,792 Increases academic achievement by helping school districts improve teacher quality. Title II-B Mathematics & Science Partnerships Fund 414 $307,769 Provides a four-week summer institute for 6 th grade mathematics and science teachers. Title III-A Limited English Proficient (LEP) Fund 460 $1,097,620 Provides additional funds to serve ESOL & limited English proficient students. Title IV-A Safe & Drug-Free Schools & Communities Fund 462 $334,859 Provide anti-drug information and counseling to students in need. Title VI-B Special Education Grants Fund 404 $16,945,430 Provide direct and related support services for handicapped children. Career Tech Vocational Grants Fund 406 $714,420 Provide career training and opportunities to students. 30

36 Special Revenue Fund FUND DESCRIPTION SPECIAL REVENUE FUNDS Continued FY2010 BUDGETED EXPENDITURES Charter School Implementation Fund 430 $670,100 Assists an approved Charter School with its implementation costs. Education for Homeless Children and Youth Fund 432 $45,961 Provides educational services to homeless children. Learn and Serve America Fund 434 $17,000 Provides opportunity for students to learn and develop good citizenship through active community participation. Professional Development Schools (PDS) Fund 487 $54,999 The purpose of this grant is to implement training, evaluation and research. Safety Street Georgia Fund 488 $56,390 Provide a pedestrian, motor vehicle, school bus, bicycle, railroad and play activities education program for elementary school-age students. Beat the Traffic Fund 490 $95,503 Increase minority interest in transportation engineering field and student achievement in science, technology, math and engineering. Teaching American History Fund 491 $333,409 Increase knowledge of American History and improve their approach to presenting the subject to students. Smaller Learning Communities Fund 492 $958,406 Prepare students to succeed in postsecondary education and careers. Students Against Destructive Decisions Fund 493 $33,992 Provide students with the prevention and intervention tools to deal with underage drinking and other drug use. Georgia Council for the Arts Education Challenge Fund 542 $6,570 Provides cultural, artistic and inter-active hands-on programming to elementary students. 31

37 Special Revenue Fund SPECIAL REVENUE FUNDS Continued FY2010 FUND BUDGETED DESCRIPTION EXPENDITURES Bus Driver Rodeo Fund 553 $5,000 Provides safety-training competition for all participating bus drivers. Michigan State University & FCSS Partnership Fund 559 $141,100 Provides professional development across the school year and testing for gains in teaching effectiveness and student learning across the school year in selected Title I schools. Georgia Prekindergarten Program - Fund 560 $9,223,114 Provide children, who are 4 years of age, with the learning experiences they need to prepare for Kindergarten. Other Donations $93,212 Funds donated to the school system for specific purposes by individuals or corporations (i.e., DHR Youth Initiative/VPA, Broad Residency, etc.) Total Expenditures $88,472,387 32

38 School Nutrition Program Fund SCHOOL NUTRITION FUND Enterprise Funds by definition are financed and operated in a manner similar to private business enterprises. The intent of the governing body is that the costs (expenses, including labor and utilities) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Currently, Food Service is the only Enterprise Fund. The School Nutrition program currently serves approximately 13 million meals annually to students/staff in Fulton County. Students may choose from a variety of foods each day. All lunches and breakfasts provide at least one-third of a student's nutritional needs and are available at a minimal cost. A free lunch program is provided for any student in need. All cafeterias are regularly inspected by the Fulton County Health Department and meet prescribed standards of the State Department of Education. 33

39 School Nutrition Program Fund SCHOOL NUTRITION FUND SUMMARY WHERE THE MONEY COMES FROM & HOW THE MONEY IS SPENT 2010 WHERE THE MONEY COMES FROM BUDGET BEGINNING MONEY IN THE BANK $859,604 SOURCE CATEGORIES LOCAL SOURCES - LUNCH & BREAKFAST SALES $19,251,781 STATE SOURCES - STATE SCHOOL NUTRITION GRANT $1,324,512 FEDERAL SOURCES - FEDERAL CATEGORICAL GRANT FOR FREE & REDUCED LUNCHES & USDA COMMODITIES $21,689,465 TOTAL SOURCES $42,265,758 TOTAL MONEY AVAILABLE $43,125,362 HOW THE MONEY IS SPENT SPENDING CATEGORIES SCHOOL NUTRITION PROGRAM $42,265,738 TOTAL SPENDING $42,265,738 ENDING MONEY IN THE BANK $859,624 TOTAL SPENDING & ENDING MONEY IN THE BANK $43,125,362 34

40 System-wide Regulatory Compliance School Meals Initiative for Healthy Children Wellness Policy Wellness Initiatives Implemented Menus no more than 30% fat, no more than 10% saturated Met nutrient and calorie standards per grade level Increased the number of offerings of fresh fruits and vegetables Increased fiber in the menus by adding whole grain menu items Decreased sodium and cholesterol in the menus Serve only lowfat, 1%, or fat free milk All fats used in the program are trans fat free oils Decreased the number of times desserts are offered to 1X per week in elementary and 2Xs per week in secondary schools Communication School Nutrition website and monthly newsletter Results Each local school has a Wellness Committee Wellness/Nutrition education were completed by schools Schools completed the Wellness Evaluation Checklist All schools monthly menus posted on website 35

41 No Cost to Student Breakfast Current Schools Greater than 65% Free and Reduced As a further commitment to student achievement, school nutrition recommends that breakfast be served at no cost to students in schools that have a 65% or more student population eligible for free or reduced meals. This program would replace the no cost breakfast to students programs at schools not meeting AYP. Current Schools greater than 65% Free & Reduced Current Schools less than 65% Free & Reduced Bethune ES H. Tubman ES Abbotts Hill ES Roswell North ES Alpharetta HS Brookview ES E. C. West ES Alpharetta ES Shakerag ES Centennial HS Campbell ES Bear Creek MS Barnwell ES Spalding Drive ES Chattahoochee HS College Park ES Camp Creek MS Cogburn Woods ES State Bridge Crossing ES Independence HS Conley Hills ES McNair MS Crabapple Crossing ES Stonewall Tell ES McClarin HS Dunwoody Springs Charter ES Renaissance MS Creek View ES Summit Hill ES Milton HS C. H. Gullatt ES P. D. West MS Dolvin ES Sweet Apple ES North Springs HS Hamilton E. Holmes ES Woodland MS Findley Oaks ES Wilson Creek ES Northview HS Hapeville ES Banneker HS Heards Ferry ES Woodland Charter ES Riverwood HS Heritage ES Creekside HS Hembree Springs ES Autrey Mill MS Roswell HS High Point ES Tri-Cities HS Hillside ES Crabapple MS Westlake HS Lake Forest ES E. Jackson ES Elkins Point MS Seaborn Lee ES Lake Windward ES Haynes Bridge MS S. L. Lewis ES Manning Oaks ES Holcomb Bridge MS Liberty Point ES Medlock Bridge ES Hopewell MS Mimosa ES Mtn. Park ES Northwestern MS Mt. Olive ES New Prospect ES Ridgeview MS Love T. Nolan ES Northwood ES River Trail MS Oak Knoll ES Ocee ES Sandtown MS Oakley ES Randolph ES Sandy Springs MS Palmetto ES Renaissance ES Taylor Rd. MS Parklane ES River Eves ES Webb Bridge MS Eligibility based on previous year October 31st official free and reduced percentage. 36

42 Meal Price Summary FY03-FY09 Adopted-FY2010 Change Elementary Lunch $1.35 $2.00 $.65 Middle/High Lunch $1.60 $2.25 $.65 Adult Lunch $2.40 $3.05 $.65 Elementary Breakfast $.80 $1.00 $.20 Middle/High Breakfast $.95 $1.15 $.20 Adult Breakfast $1.30 $1.50 $.20 37

43 Metro Lunch Price Comparison Metro - Elementary School Lunch Prices Metro - High School Lunch Prices Meal Price FULTON-39.5% FR DEKALB-66% FR COBB-38% FR GWINNETT-46% FR FAYETTE-17% FR Meal Price FULTON-39.5% FR DEKALB-66% FR COBB-38% FR GWINNETT-46% FR FAYETTE-17% FR School Year School Year 38

44 Summary of Forecasted Revenue and Expenditures FY06 FY07 FY08 FY09 FY10 FY11 FY12 Y/E Actual Y/E Actual Y/E Actual Y/E Forecast Forecast Forecast ESTIMATED REVENUES ( A ) 31,170,444 33,298,816 34,881,466 36,288,626 42,265,758 43,892,665 45,584,649 PROPOSED EXPENDITURES ( B ) 31,465,388 35,400,346 39,555,046 43,126,956 42,265,738 43,736,442 45,266,663 RESOURCES IN EXCESS OF EXPENDITURES ( C = A - B ) $ (294,944) $ (2,101,530) $ (4,673,580) $ (6,838,330) $ 20 $ 156,223 $ 317,986 Estimated Beginning Fund Balance 14,767,988 14,473,044 12,371,514 7,697, , ,624 1,015,847 Estimated Ending Fund Balance 14,473,044 12,371,514 7,697, , ,624 1,015,847 1,333,833 % Estimated Ending Fund Balance 46.0% 34.9% 19.5% 2.0% 2.0% 2.3% 2.9% Estimated Ending Fund Balance in Terms of Months Of Operation

45 Debt Service Fund DEBT SERVICE FUND SUMMARY WHERE THE MONEY COMES FROM & HOW THE MONEY IS SPENT 2010 WHERE THE MONEY COMES FROM BUDGET BEGINNING MONEY IN THE BANK $42,867,987 LOCAL SOURCES - PROPERTY TAXES & INTEREST INCOME USED TO PAY OFF LONG-TERM DEBT $428,680 TRANSFERS - FROM SPLOST FUND TO RETIRE DEBT $24,572,269 TOTAL SOURCES $25,000,949 TOTAL MONEY AVAILABLE $67,868,936 HOW THE MONEY IS SPENT SPENDING CATEGORIES INTEREST $9,442,269 PRINCIPAL $15,130,000 PAYING AGENT FEES $0 TOTAL SPENDING $24,572,269 ENDING MONEY IN THE BANK $43,296,667 TOTAL SPENDING & ENDING MONEY IN THE BANK $67,868,936 40

46 Capital Program Fund CAPITAL PROGRAM FUND SUMMARY WHERE THE MONEY COMES FR OM & HOW THE MONEY IS SPENT 2010 WHERE THE MONEY COMES FR OM BUDGET BEGINNING MONEY IN THE BANK ($52,904,469) SOURCE CATEGORIES LO CAL SOURCES $123,811,769 STATE SOURCES $20,512,363 FEDERAL SOURCES $0 OTHER LOCAL SOU RCES $1,940,227 TRANSFER FROM GENERAL FUND $24,500,000 TOTAL SOURCES $170,764,359 TOTAL MONEY AVAILABLE $117,859,890 HOW THE MON EY IS SPENT SPENDING CATEGORIES IN STRUCTION $0 PUPIL SUPPORT SERVICES $0 IMPROVEMENT OF INSTRUCTION $0 GENERAL ADMINISTRATION $0 SCHOOL ADMINISTRATION $0 MAINTENANCE & OPERATIONS $0 STUDENT TRANSPORTATION $0 CENTRAL SU PPORT SERVICES $0 OTHER SUPPORT SERVICES $0 CONSTRUCTION AND CAPITAL EXPENDITURES $98,272,704 TRANSFER TO DEBT SERVICE FUND $24,572,269 TOTAL SPENDING $122,844,973 ENDING MONEY IN THE BANK ($4,985,083) TOTAL SPENDING & ENDING MONEY IN THE BANK $117,859,890 41

47 Increasing Student Achievement Through Adequate Funding Fulton County Schools Funding Strategy: Equality and Equity The Fulton County School System will serve almost 90,104 students in 99 schools during the school year. The school district is unique in that the City of Atlanta divides the system into north Fulton and south Fulton. Also, the Chattahoochee River divides Sandy Springs from north Fulton. These geographic boundaries inevitably lead to distinctions and questions concerning the distribution of services and resources. The funding distribution in Fulton County School System is centered on the student, the classroom, and the school since the district believes that all students must be well served regardless of the school location. Therefore, Fulton Schools funding strategy is based on two distinct elements, also known as funding layers: Equality and Equity. The following information is provided to clarify these issues. I. Equality- shows the base allocation earned by schools as determined by a set of formulas and guidelines that look primarily at the number of students. These formulas determine such things as the number of general education classroom teachers and assistants, support staff such as Principals, Assistant Principals, etc. For example, if two elementary schools have the exact same number of general education students distributed the exact same way among grades K-5 (example 700 students), level #1 funding would be approximately the same. II. Equity- additional funding provided based on the individual school s uniqueness and based on student needs. For example, schools receive additional dollars based on student mobility rate, achievement gap, number of students living in poverty, and other qualitative and need-based factors. A school may receive more money because it has a larger number of students requiring special education services while another school may have a significantly higher ESOL or Remedial population. Schools with eligible students qualifying for talented and gifted programs also receive additional dollars to pay for these services. While the base allocation provides equal funding to all schools, the additional allocations provide equitable funding. 42