Cobb County School District. FY2007 Budget Development Process

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Geraldine Natalie McBride
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1 Cobb County School District Process

2 Major Budget Considerations: Revived State of GA Economy FY07 Governor s Education Budget Proposal Cobb County School District Budget Development 1

3 Revived State of Georgia Economy State Economic recovery began in FY2005 and is continuing in FY2006 $1.2 Billion projected increase in State Revenue for FY % ($1 Billion) of Additional State Revenue for Education in Georgia 2

4 FY07 Governor s Education Budget Proposal 3

5 FY07 Budget Development 4

6 FY07 Governor s Education Budget Proposal Pay Increase 4% pay raise for teachers on the State salary schedule More than 50 percent of teachers will receive a 7% pay raise because of the additional 3% pay step How does the State pay increase proposal affect Cobb teacher salaries? Cobb s salary schedule for teacher s is higher than the State salary schedule, the State pay raise equates to a 3.4% increase on the Cobb salary schedule. Cobb s salary schedule includes step increases for eligible employees, thus, teachers will receive an average pay increase up to 4.9% on the Cobb salary schedule 5

7 FY07 Governor s Education Budget Proposal Reduce Maximum Class Sizes in Kindergarten through eighth grade: Grades Level FY2006 FY2007 Difference K (w/parapro) (4) Grades (2) Grades (4) Grades (4) $100 Gift Card for teachers to purchase classroom supplies Completion Counselor in every High School 6

8 FY07 Governor s Education Budget Proposal State funds to ensure that the cost of health insurance premiums for teachers will remain the same Fund FY2007 QBE growth Require districts to spend at least 65% of the district s budget in the classroom State bond funding for classroom construction and new equipment 7

9 FY07 Governor s Education Budget Proposal State Austerity Reductions Description FY2003 FY2004 FY2005 FY2006 FY2007 (Estimate) Annual $9,018,265 $10,479,762 $22,370,784 $22,370,784 $11,400,000 Mid Yr Cut $8,556,134 Total $19,035,896 Cumulative $9,018,265 $28,054,161 $50,424,945 $72,795,729 $84,195,729 Note 1 For FY2007, the State is not retroactively restoring previous austerity cuts Note 2 For FY2007, the State will continue Austerity cuts for all districts at a lower level 8

10 How education is funded for the Cobb County School District (General Fund) Revenue Source FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 State 55.0% 52.3% 50.1% 48.7% 46.7% 46.4% (NOTICE THAT STATE REVENUE HAS BEEN DECREASING>>>) Local 44.9% 47.6% 49.8% 51.2% 52.9% 53.0% (NOTICE THAT LOCAL REVENUE HAS BEEN INCREASING>>>) Federal.1%.1%.1%.1%.4%.6% For FY07, the percentage of state revenue may increase because of the emphasis by the state on education 9

11 Local Fair Share The Local Fair Share is an amount of money equal to the amount that can be raised by levying five (5) mills on the property tax digest. It is estimated that the Local Fair Share will increase by $8.7 Million for FY2007 Year Local Share 2002 $81,438, $88,827, $95,996, $103,896, $111,425, Est $120,164,390 10

12 REVENUE CONSTRAINTS Legislation Affecting Cobb Revenue: Local 5 Mill Share (5.6 Mills) Taxpayer s Bill of Rights (3 Public Hearings) EXPENDITURE ISSUES/CONCERNS State Mandated Lower Class Sizes in Grades K through 8 20 Mill Cap Revenue Limitation Labor Intensive General Fund Budget Cost Control Directly Related to Salary & Fringe Benefit Expenditures State of GA Budget Reductions (Austerity reductions) State of Georgia Expenditure Requirements Limited Control Type Expenditures: Utilities, Gasoline & Diesel Building & Grounds Maintenance Buses Legal Bills 11

13 FY07 Budget Development General Fund Local Revenue Highlights 8.41% FY2007 Projected Property Digest Growth Issue: Will revenue completely fund expenditures and support student growth? 12

14 General Fund Expenditure Highlights Expenditures for Student Growth (Staff and Operating Expenditures) Expenditures for New Schools (Hillgrove, Lovinggood, McClure) (Staff, Supplies, Equipment, Utilities) Expenditures for Student/Teacher Ratio Improvement Salary Step for Eligible Employees 4% Salary Increase for Teachers 13

15 Status The balancing of the FY2007 Budget is dependent upon items which are included or excluded during budget deliberations. Additionally, further budget adjustments may be necessary because of State of Georgia legislative action 14

16 WHAT IS THE PROCESS FOR BALANCING THE FY2007 BUDGET? 15

17 FY07 Budget Development 16

18 How does Cobb County School District produce a balanced budget? OPTIONS: (1)Identify Available Revenue (2)Authorize Use of Fund Balance Reserves (3) Examine Expenditures -Examine Student/Teacher Ratios -Review & Prioritize Operating Costs -Review & Prioritize locally funded positions -Review & Prioritize local school costs -Review & Prioritize central office costs 17

19 How does Cobb County School District produce a balanced budget? Seek Budget Balancing Ideas from Local Schools and Central Departments 18

20 FY2007 Budget Calendar Implement an organized, sequence of events to prioritize school district needs 19

21 Let s Have a Great Year! 20

BUDGET UPDATE September 2009 Volume 1, Issue 1

BUDGET UPDATE September 2009 Volume 1, Issue 1 Cobb County School District, Financial Services Division http://www.cobbk12.org/centraloffice/finance/budget.htm About the Budget Process The development