CORRECTION #1: CORRECTIONS TO WRONG INFORMATION PUT OUT BY:

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1 INFORMATION HEREIN SUPPLIED BY BALDWIN COUNTY BOARD OF EDUCATION CORRECTIONS TO WRONG INFORMATION PUT OUT BY: CORRECTION #1: Based upon Baldwin County Public Schools current rate of growth, every cent of the 8-mills of revenue will be needed to accommodate the growth and replace substandard facilities. A new school can cost anywhere from $20 million to $45 million depending upon the grades it serves and land costs. The school system has not built a school in six years. It not only has to catch up, it has to build schools based upon current and future needs. Long-term, stable funding is how we secure bonds to finance school construction. Out of the estimated $28.6 million generated annually by the 8 mills, approx. $21 million will be required per year to finance JUST the first 10 years of construction costs. The remaining yearly revenue will be used for a comprehensive, pay-as-you-go plan and prepare the school system to meet capital needs after 10 years. The 10-year plan consists of approximately 2,085,900 square feet of safe and secure facilities. This group s $200 million figure does not even address old, outdated and substandard facilities. In addition, not only do classrooms have to be built but larger areas have to be included or enlarged as well. The Baldwin County Public Schools capital plan addresses building enhancements such as gymnasiums, cafeterias, band rooms, etc., in addition to just classrooms. The best way to budget for school construction is by square footage of the appropriate building type for our estimated enrollment using Alabama State Department of Education guidelines. As you can see from the chart, the school system has grown by 25% over the past 10 years representing an average increase of 2.3% per year over that time period.this growth will not just stop. Baldwin County is currently the fastest growing county in the state, with no stopping in sight. If we continue to grow by an average of over 2% per year, then we will be approaching over 40,000 students by 2030 and over 55,000 students by 2045.

2 CORRECTION #2: From Opponents Website: Baldwin County is ranked 110 out of 134 school systems in Per Pupil Expenditures. Note: 109 school systems in Alabama spend more per student than Baldwin County. If one is referencing expenses, it makes the most sense to show actual expenses. Below is the Baldwin County line item from page 21 of the State Report Card showing total Per Pupil Expenditures. If you are to reference the State Department of Education figures, it s important to show all the facts. The Board continues to stress that almost onethird of local revenue is not available to the Board due to the state s Equity Funding Provisions. How does this impact Baldwin County? If you look on page 19 on the State Report Card, you will see that Baldwin County ranks 133 out of 134 (second to last) in state funding and 114 out of 134 school systems in Federal funding. Local funds have to make up for the deficit in state and Federal funding. SEE THE NEXT PAGE FOR MORE DETAILS.

3 2014 STATE EDUCATION REPORT CARD THE TRUTH AND HOW THE OPPOSITION GROUP IS USING IT TO MISLEAD YOU The following excerpt is from Revenue by Source County Systems (pg. 19) Total State Revenue was reduced by $39,431,760 in 2013 as a result of Equity Funding. Equity Funding means that the first 10 mills of a school system s ad valorem is kept by the State of Alabama. See the impact by looking at state revenue per student. Let s look at the facts in more details: 1)The opposition group s information is misleading because it includes all 12 mills. Due to Alabama s Equity Funding Provision, which cannot be changed, only 2 mills are available in Baldwin County. Of the total circled local revenue $39,431,760 or 27 percent is not available for local use. 2) Misleading because this figure includes millions of dollars generated from student meals in the cafeteria, local school funds, transportation funds, earmarked funds for special education needs, as well as keeping over 500 locally- funded employees serving students. 3) Misleading because the state requires a 1 month reserve balance from local funds (1 month = $20 million dollars). Baldwin County operates using sales tax revenue which can be volatile based on economic factors, forces of nature (hurricanes), and other unknown factors (BP oil spill, etc.). Baldwin County has budgeted for a 2 month reserve to ensure financial stability for the future. Equity Funding creates a scenario where Baldwin County ranks 133 out of 134 total school systems in state funding per student. (Second from last!) Local revenue has to pick up the slack in state funding by providing additional teachers, counselors, and other instructional support personnel that the state does not provide. This means that very limited dollars exist to address our county- wide capital growth needs. This figure is being manipulated by the opposition saying we rank #2 in local funding, without looking at the entire picture. Equity Funding cannot be ignored; the state required reserve balance cannot be ignored; and earmarked revenue sources cannot be used for capital construction. Figures from State Department of Education Report Card based on FY 2013 figures.

4 CORRECTION #3: The one-percent penny tax was put in place to keep local school employees serving students and to deal with three straight years of proration funding cuts from the state. This translates to almost $34.5 million less in state funding for Baldwin County today compared to As you can see below, Baldwin County has seen an increase of 3,910 students since Thanks to the penny tax, the board has been able to keep 518 local school employees serving students. The Board still has 561 fewer employees today than in This group continues to ignore the effects of State Equity Funding on Ad Valorem Revenue collected.

5 CORRECTION #4: Quoted from their Website: With 73,283 households in the Baldwin County (according to US Census Data) and $28.7 Million in anticipated tax revenue from the proposed new tax, we can see that, on average, each household will pay $392 in new taxes per year ($28,700,000 / 73,283 = $392). Real Estate accounts for 93 percent of the ad valorem tax received by the school system. Baldwin County s real estate valuations vary greatly depending on location and the size of one s home. Calculating the total tax revenue divided by households is an extremely inaccurate calculation method. What makes the most sense is for each taxpayer to calculate his or her own increase. A mill is equal to 1/10 of one cent of assessed taxable property; therefore it varies based on valuations. Below is the cost of an 8 mill increase: Homestead Business /Commercial = $80 increase per year per $100,000 of appraised value = $160 increase per year per $100,000 of appraised value Private Motor Vehicle = $12 increase per year per $10,000 of appraised value