Budget Overview | www.gbpi.org

Georgia Budget & Policy InstituteClaire Suggs, Senior Education Policy AnalystNovember 11, 2013

Education FundingOverview

Budget Overview | www.gbpi.org

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State Funding

Since 2002 in Cobb County:

• State funding per student has declined 16.9 percent• The number of students has grown 11 percent• The percent of economically disadvantaged

students has grown more than 21 percentage points

Shifting responsibility for K-12 funding: Georgia

State56%

Local38%

Federal6%

State of Georgia: Funding sources for K-12 educa-

tion, FY2002

State49%

Local42%

Federal9%

State of Georgia: Funding sources for K-12 educa-

tion, FY2012

SOURCE: Georgia Department of Education and GBPI research

Shifting responsibility for K-12 funding: Cobb

State50%Local

47%

Federal3%

Cobb County: Funding sources for K-12 educa-

tion, FY2002

State45%

Local49%

Federal6%

Cobb County: Funding sources for K-12 educa-

tion, FY2012

SOURCE: Georgia Department of Education and GBPI research

K-12 Formula Underfunded by $1 Billion

• QBE austerity cut is $65,900,761 for fiscal year 2014.

• QBE austerity cut per student is $599.• Cumulative austerity cut is $491,296,767 since

2002.

Austerity Cuts in Cobb County

Local Funding

Between 2008 and 2012 in Cobb County:

• Tax digest fell 17.8 percent between 2008 and 2012.

• Local revenue per student fell by 12.3 percent.

Impact of Funding Losses

• Cut the school calendar to 175 days• Increase class size• Eliminate 1,380 teaching positions since 2009• Eliminate 113 instructional support positions since 2009• Cut central office staff• Rely on reserve funds

Revenues Return to 2007 LevelsGeneral and Motor Fuel Funds 2007-2014 Fiscal Years

Drivers of Budget Growth

$210 Million$109 Million$127 Million $42 Million $38 Million $35 Million

00

K-12 and University System Formula Growth

Medicaid and PeachCare Growth

Teacher and Employees Retirement

Systems Contributions Debt Services

K-12 Education Equalization

Department of Justice Settlement Agreement

0

0

0

0

0

0

Most Georgia Spending is for Education

51.5%Education

Georgia’s Fiscal Year 2014 Budget: $18.8 Billion

Other

Health Care is 2nd Largest Budget Expense

51.5%Education

51.5%Education

Education

Other

20.9%Health Care

Georgia’s Fiscal Year 2014 Budget: $18.8 Billion

Many Services in Smaller Category “Other”

51.5%Education

51.5%Education

Other

Education

Health Care

Georgia’s Fiscal Year 2014 Budget: $18.8 Billion

Other27.6%

State Spending for “Other” Services

51.5%Education

51.5%Education

OtherOther27.6%

OtherPublic Safety 9.2%Debt Services 6.4%Transportation 4.3%General Gov 3.9%Human Services 2.6%Judicial Branch 0.9%Legislative Branch 0.4%

27.6%

State Savings Account Must Be Rebuilt

FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 $-

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

$1,600,000,000

$7

23

M

$700 million

$260 million

$51 million

$257 million

$793 million

$1

.54

B

$566 million

$103 million

$116 million $328 million

$3

78

M

18Days of reserves

2002

29

State Savings Depleted During Recession

Days of reserves2008

2

$103 M2010

7.6

Days of reserves2013

Q & A

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Claire Suggs, Senior Policy Analystcsuggs@gbpi.org

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