FY 2007 BUDGET PROCESS PUBLIC HEARING #1 TUESDAY, FEBRUARY 28, 2006 7:00 PM ADMINISTRATIVE CENTER.

FY 2007 BUDGET PROCESSFY 2007 BUDGET PROCESS

PUBLIC HEARING #1PUBLIC HEARING #1

TUESDAY, FEBRUARY 28, 2006TUESDAY, FEBRUARY 28, 2006

7:00 PM7:00 PM

ADMINISTRATIVE CENTERADMINISTRATIVE CENTER

2

FY2007 Tentative Budget FY2007 Tentative Budget CalendarCalendar

Activity Location Date Time

FY06 mid-year budget review & FY07 preliminary draft review and budget Administrative Center February 28, 2006 5:00 p.m. - 6:00 p.m.

Public Hearing #1 - Budget Administrative Center February 28, 2006 7:00 p.m.

Board Roundtable- Preliminary School Allocation Formulas and Cost Center Guidelines Dunwoody Springs Charter March 28, 2006 5:00- 6:30 p.m.

Public Hearing #2 - Budget Dunwoody Springs Charter March 28, 2006 7:00 p.m.

Board Workshop - Budget Work Session #1 Hamilton E. Holmes ES April 20, 2006 4:30 -6:00 p.m.

Board Roundtable - Budget Work Session #2 Administrative Center April 25, 2006 5:00 p.m.

Board Workshop - Budget Work Session #3 Dunwoody Springs Charter May 11, 2006 4:30 - 6:00 p.m.

Board Workshop - Budget Work Session #4 Administrative Center May 15, 2006 5:00 p.m.

Board Roundtable - Budget Work Session #5 Dunwoody Springs Charter May 23, 2006 5:00 p.m.

Public Hearing #1 on Millage Rates (if required) Administrative Center June 1, 2006 10:00 a.m.

Salary Schedule Hearing Dunwoody Springs Charter June 1, 2006 5:00 p.m.

Public Hearing #2 on Millage Rates (if required) Dunwoody Springs Charter June 1, 2006 6:00 p.m.

Budget Workshop - Board Work Session #6 Dunwoody Springs Charter June 1, 2006 7:00 p.m.

Public Hearing #3 on Millage Rates (if required) Administrative Center June 8, 2006 4:00 p.m.

Board adopts Final Budget & Final Millage Rates (*) Hamilton E. Holmes ES June 8, 2006 6:30 p.m.

(May require a called Board meeting depending on the County's Schedule)      

3

Enrollment History Enrollment History Forecasted, 10-Day, and First Month Forecasted, 10-Day, and First Month

FY 1996-FY 2006FY 1996-FY 2006

50,000

55,000

60,000

65,000

70,000

75,000

80,000

85,000

FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06

Forecasted Total 10- Day Total First Month Total

4

Student Growth Based onStudent Growth Based on Forecasted Enrollment Forecasted Enrollment

86,659

104,267

60,000

65,000

70,000

75,000

80,000

85,000

90,000

95,000

100,000

105,000

110,000

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

5

Student Growth Based on 1Student Growth Based on 1stst Month Actual Month Actual EnrollmentEnrollment

(1(1stst Month Actual Enrollment for FY00-FY06; Forecasted Enrollment for FY07- Month Actual Enrollment for FY00-FY06; Forecasted Enrollment for FY07-FY10)FY10)

 FY

2000FY

2001FY

2002FY

2003FY

2004FY

2005FY

2006FY

2007FY

2008FY

2009FY

2010

Total

67,097

68,26

4

69,709

71,290

73,03

6

75,533

80,659

86,65

9

91,712

96,725

100,775

Change

1,491

1,167

1,445

1,581

1,746

2,497

5,126

6,000

5,053

5,013

4,050

% Increase 2.27% 1.74% 2.12% 2.27% 2.45% 3.42% 6.79% 7.44% 5.83% 5.47% 4.19%

School Resources

Student Enrollment

7

Forecasted Revenues and Forecasted Revenues and ExpendituresExpenditures

$500,000,000

$600,000,000

$700,000,000

$800,000,000

$900,000,000

FY2005 FY2006 FY2007 FY2008 FY2009

Estimated Expenditures Forecasted Revenues

8

General Fund Revenue General Fund Revenue SummarySummary

32.1%2.6%

65.3%

Where does the money come from?Where does the money come from?

All OthersAll Others(i.e., Tuition & Interest (i.e., Tuition & Interest on Investments)on Investments)

State SourcesState Sources

Ad Valorem TaxesAd Valorem Taxes

All grants (Title I, Title II, Title IV, Title VIB, etc.) are included in the All grants (Title I, Title II, Title IV, Title VIB, etc.) are included in the Grants/Special Revenue Fund.Grants/Special Revenue Fund.

9

SOME CURRENT BUDGET SOME CURRENT BUDGET CHALLENGESCHALLENGES

Federal Government

• • Balanced budgetBalanced budget

• • Unfunded federal mandatesUnfunded federal mandates

• • NCLB (No Child Left Behind)NCLB (No Child Left Behind)

• • Title I funding, eligibility rules, etc.Title I funding, eligibility rules, etc.

• • ADA, Idea, Section 504, etc.ADA, Idea, Section 504, etc.

• • OthersOthers

10

SOME CURRENT BUDGET SOME CURRENT BUDGET CHALLENGESCHALLENGES

State of Georgia Existing State legislation (i.e. SB 177 - Millage Rollback, Q.B.E.

5 Mills Local Fair Share, HB 1187, SB249, HB 1190, SB 35, “Class Size and Expenditure Controls,” Q.B.E. Tests, etc.)

Potential new legislation (i.e. SB 390 - 65% Solution, HR 58 - Sales Tax vs. Property Tax, HB 931- Sale of Tax Liens, HR 162 -Property Assessment Freeze, “TABOR” – Taxpayer’s Bill of Rights/Colorado, HB 1063- Exemption of All Business Inventory from All Ad Valorem Taxes, etc.)

HB 1358-Truth in Class Size? Additional HS Counselors?

PE: 150 minutes minimum requirement vs. 100 minutes/ week

11

SOME CURRENT BUDGET SOME CURRENT BUDGET CHALLENGESCHALLENGES

Austerity Reductions, unfunded State programs, etc.

Lawsuit on adequate funding of public education in Georgia

IE2- Governor’s Finance Task Force

Calendar Year 2006: election year (General Election, Special Election, Referendum, etc.)

Potential State raise on State salary schedule: 4%?

Others

12

SOME CURRENT BUDGET SOME CURRENT BUDGET CHALLENGESCHALLENGES

Local and Other Government EntitiesLocal and Other Government Entities• Tax Commissioner, Tax Assessor’s office, BOA, County

Manager, etc.• Exempt vs. Non-exempt Properties: potential lost

revenue? Audit from “Cherry, Bekaert & Holland, CPA”• Local economy (Delta, AT&T, Bell South, Coca Cola,

Georgia Power, Ford Motor Co., local medium and small businesses, etc.)

• Enrollment Growth (Where? When? How much?)• SPLOST III• Others

13

State Revenue Challenges:State Revenue Challenges:Local Fair Share Tax HistoryLocal Fair Share Tax History

$-

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

14

FY03, $6,100,110

FY04 $12,824,008

FY05 $15,059,439

FY06 $15,059,303

FY07 $7,529,652

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

State Revenue Challenges:State Revenue Challenges:Fulton County School SystemFulton County School SystemState Austerity ReductionsState Austerity Reductions

$56,572,512

Est.

15

Statewide Funding for K-12 Statewide Funding for K-12 Public Education: General FundPublic Education: General Fund

59.3%

54.2%

40.7%

45.8%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

FY02 FY03 FY04 FY05 FY06 FY07 Est.

State Contribution Local Contribution

16

FCSS Funding for K-12 Public FCSS Funding for K-12 Public Education: General FundEducation: General Fund

35.3%

32.0%

64.7%

68.0%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

FY02 FY03 FY04 FY05 FY06 FY07 Est.

State Contribution Local Contribution

17

Property Tax Challenges:Property Tax Challenges:Millage Rate HistoryMillage Rate History

Tax Year 1999 2000 2001 2002 2003 2004 2005

Fiscal Year(1999-2000)

(2000-2001)

(2001-2002)

(2002-2003)

(2003-2004)

(2004-2005)

(2005-2006)

State QBE Tax 5.000 5.000 5.000 5.000 5.000 5.000 5.000

Maintenance & Operation 14.860 14.350 13.260 13.460 12.758 12.315 12.825

Sub-Total 19.860 19.350 18.260 18.460 17.758 17.315 17.825

Debt Service 0.900 0.800 0.760 0.3100 0.298 0.291 .282

Total Millage Levied 20.760 20.150 19.020 18.770 18.056 17.606 18.107

18

Property Tax Challenges:Property Tax Challenges:Total Millage Rate Summary Total Millage Rate Summary

Tax Year 1999 2000 2001 2002 2003 2004 2005

Fiscal Year

(1999-2000)

(2000-2001)

(2001-2002)

(2002-2003)

(2003-2004)

(2004-2005)

(2005-2006)

Total Millage:

20.760 20.150 19.020 18.770 18.056 17.606 18.107

Change: - -0.610 -1.130 -0.250 -0.714 -0.450 0.501

Apx. Cumulative Dollar Value Savings Provided to Tax Payers Through Millage Rollbacks- $53M

19

10

12

14

16

18

20

22

24

DeKalb 22.480 22.230 21.980 21.980 22.980 22.980 22.980

Gwinnett 19.750 19.170 20.420 20.300 20.300 20.300 20.550

Cobb 19.050 19.050 20.050 19.900 19.900 19.900 19.900

Fulton 20.760 20.150 19.020 18.770 18.056 17.606 18.107

FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006

FULTON COUNTY SCHOOLSFULTON COUNTY SCHOOLS Total Millage Rate Comparisons Total Millage Rate Comparisons

Current Approximate Value Of One (1) Mill In Fulton County Is $22 - $23 Million

20

Expenditure Challenges:Expenditure Challenges:GENERAL FUNDGENERAL FUND

Resources Allocation by Major Categories of Resources Allocation by Major Categories of ExpendituresExpenditures

Where does the money go?Where does the money go?

21

Expenditure Challenges:Expenditure Challenges:GENERAL FUNDGENERAL FUND

Resources Allocation by State Function Resources Allocation by State Function CodesCodes

Where does the money go?Where does the money go?

Instruction*, 75%

Operations/Maintenance & Plant Services, 9%

Student Transportation Services, 4.6%

School Administration, 5.9%

Support Services - Central, 1.9%

Transfers & Others, 1.5%

Administration, 2.1%

*Instruction includes State Function 1000- Direct Instruction, 2100-Pupil Services, 2210- Staff Development, 2220- Media

22

PUBLIC HEARING #1PUBLIC HEARING #1

TUESDAY, FEBRUARY 28, 2006TUESDAY, FEBRUARY 28, 2006

ADMINISTRATIVE CENTERADMINISTRATIVE CENTER