Education FundingOverview

Budget Overview | www.gbpi.org

Georgia Budget & Policy InstituteClaire Suggs, Senior Education Policy AnalystMay 9, 2014

Budget Overview | www.gbpi.org

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The Georgia Budget and Policy Institute produces research and state budget analysis to show ways Georgia can provide better education, health care and opportunity for everyone.

State Funding

51.5%Education

51.5%Education

OtherOther27.6%State funding per student has declined 15.3 percent

The percent of economically disadvantagedstudents climbed from 45 to 60 percent.

Since 2002 in Georgia:

Shifting responsibility for K-12 funding: Georgia

State56%

Local38%

Federal6%

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

tion, FY2002

SOURCE: Georgia Department of Education

State51%Local

41%

Federal8%

State of Georgia:Funding Sources for K-12 Educa-

tion, FY 2013

K-12 Formula Underfunded by $1 Billion in 2014

Local Funding

51.5%Education

51.5%Education

OtherOther27.6%Tax digest fell 17.3 percent between 2008 and 2012.

Local revenue per student fell by 5.8 percent.

Between 2008 and 2012:

Impact of Funding Losses

51.5%Education

51.5%Education

OtherOther27.6%

71 percent of responding districts cut the school year

95 percent increased class size

About 70 percent have eliminated instructional support positions

Nearly 80 percent have cut central office staff

82 percent are using reserve funds this year

Impact of Funding Losses

51.5%Education

51.5%Education

OtherOther27.6%

0%

10%

20%

30%

40%

50%

60%

70%

38%42%

62%

26%

Percent of Districts Reducing Programs

FY 2015 Budget ($19.9 Billion)

Revenue Sources

Georgia Revenue by the Numbers

49th State tax revenue per person (2012)

46th State tax revenue as percentage of income (2012)

46th State and local tax revenue per capita (2011)

FY 1989

FY 1991

FY 1993

FY 1995

FY 1997

FY 1999

FY 2001

FY 2003

FY 2005

FY 2007

FY 2009

FY 2011

FY 2013

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

6.0%

6.3%6.0%

5.6%

6.0%

5.9%

6.0%

6.0%

6.0%

5.8%

5.9%5.9%

6.0%

5.6%

5.3%

5.3%

5.4%

5.6%

5.7%

5.5%

5.1%

4.5%

4.6%

4.7%

4.7%

6.0%1989

5.3%2003

4.6%2010

Georgia Revenue as a Percentage of Income at Historic Low

4.7%2014

5.7%2007

Revenues as a Percentage of Income Fiscal Years 1989 – 2014

Revenues Finally Surpass 2007 LevelsGeneral and Motor Fuel Funds 2007-2015 Fiscal Years

Per Capita Revenues Still below 2007

$2,011 $1,968

$1,741

$1,566

$1,688 $1,742$1,831

$1,879 $1,944

Budget Growth in FY 2015 ($928 Million)

$314 Million $151 Million $173 Million $142 Million $51 Million $34 Million

Partial Restoration K-12 Formula Cut

K-12 and University System Formula Growth

Medicaid and PeachCare Growth

Teacher and Employees Retirement

State Employee Salary Increase

0

0

0

0

0

Department of Justice Settlement Agreement 0

Total QBE Funding FY 2015 ($514 Million)

$480 Million $29 Million $5 Million

QBE

QBE Local 5 Mill Share

QBE Equalization

0

0

0

QBE Funding FY 2015 ($480 Million)

$314 Million $100 Million $57 Million $9 Million

Partial Restoration K-12 Formula Cut

Formula Growth (Enrollment and T&E)

Teacher Retirement System

Other

0

0

0

0

K-12 Formula Underfunded by $750 Million in 2015

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Claire Suggs, Senior Policy Analystcsuggs@gbpi.org

www.gbpi.org

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