Transcript Document

Education Briefings for
Candidates for Office
In 2008
School Finance
www.ncforum.org
A.
School Finance Overview
B.
Impact of the Lottery
C.
Budget Overview
D.
School Finance Litigation
School Finance Overview
Governor's Recommended General Fund Budget,
2008-09
UNC System
14.7%
Total recommended
education spending:
$12.7 billion
Public Schools
43.4%
Source: OSBM, Recommended
Adjustments, 2008-09, Figure 1
Community
Colleges
5.1%
HHS
25.6%
Justice & Public
Safety
11.3%
2006-07 Sources of School Funding
10.2%
$1.16 B
25.0%
$2.84 B
64.8%
$7.37 B
State
Federal
Local
Source: DPI, Financial & Business Services, Highlights of the NC Public School Budget, February 2008
Who Pays For What?
2007-08 Federal Funds Provide ($2.84 B)
Title I – all programs ($328.6 m)
Child Nutrition ($325.0 m)
Children w/ Special Needs ($297.0 m)
Teacher Quality ($62.4 m)
Vocational Education ($21.8 m)
Technology Grants ($5.8 m)
After School Programs ($20.9 m)
Safe & Drug Free Schools ($5.8 m)
2007-08 Local Funds Provide ($1.16 B)
Additional teachers, instructional support & teacher
assistants (11,432 positions)
Central Office Administrators (33.6% of total)
Salary Supplements (4 @ $5,000+, Average=$1,993, 5 @ $0)
School Construction, Maintenance & Debt Service
 Utilities, Housekeeping, Technology, & Garage Costs
Who Pays For What?
2007-08 State Funds Provide ($7.37 B)
Instructional Personnel ($4.1 B)
At-Risk Student Services ($220.3 m)
Children w/ Special Needs ($663.3 m)
Transportation ($360.6 m)
Low-Wealth supplemental funds ($195.4 m)
ABCs Bonus ($70 m)
Limited English Proficient ($61.2 m)
Just the Facts. . .
Largest Expense in the State Budget (37.3%)
Enormous Business ($7.91 B)
Largest Employers in the State
• Charlotte Mecklenburg Schools is among top 10 employers
• Half of all districts have 1,000+ employees
Transportation (13,696 buses178,297,253 miles)
Counseling (4,380 counselors & psychologists)
Food Provider (186,564,780 breakfasts & lunches)
Maintenance staff (26,748 service workers, drivers & other
laborers)
NC History and how we got here…
Article IX: Education
Sec. 2. Uniform system of schools.
(1) General and uniform system: term.
The General Assembly shall provide by
taxation and otherwise for a general and
uniform system of free public schools,
which shall be maintained at least
nine months in every year, and wherein
equal opportunities shall be provided for
all students.
School Funding Responsibility
School Budget and Fiscal Control Act (1975)
“To insure a quality education for every child
in North Carolina, and to assure that the
necessary resources are provided, it is the
policy of the State of North Carolina to
provide from State revenue sources the
instructional expenses for current operations
of the public school system as defined in the
standard course of study. It is the policy of
the State of North Carolina that the facilities
requirements for a public education system
will be met by county governments.”
School Machinery Act &
School Budget and Fiscal Control Act
(Responsibilities Are Blurred)
State=current expense & programs
Counties Paid for 6,621 teachers (7%)
3,052 teacher assistants (10.6%)
(17.9%)
2,276 instructional support
437 administrators (25.8%)
(16.2% of all personnel)
Counties=capital (building & maintenance)
State Has Paid $2 Billion for capital outlay since
1995 (25% of the total)
A Decade of Enrollment Growth: 1997-98 to 2007-08
45,000
40,117
40,000
37,803
annual growth
35,000
30,000
28,176
27,415
23,127 23,983
25,000
20,000
21,117
20,577
17,834
18,484
19,772
15,000
10,000
5,000
0
19971998
1998- 1999- 20001999 2000 2001
Source: Public School Forum based upon data from DPI
2001- 2002- 20032002 2003 2004
2004- 2005- 20062005
06
07
200708
Public Education Authorized Budget
(% of General Operating Fund)
55%
54%
53%
52%
52.0%
51%
50%
Average=43.6%
49%
48%
47%
46%
45%
44%
43%
42%
41%
40%
39%
37.3%
38%
37%
36%
If schools received the same percentage of General Fund expenditures as they did in 1970,
35%
schools would have had $2.97 B MORE in 2007-08.
34%
33%
32%
31%
Note: The General Fund is not the only source of public education spending, but it is the major one.
Source: Public School Forum based upon data from the General Assembly & Office of State Budget & Management
2007-08
2006-07
2005-06
2004-05
2003-04
2001-02
2002-03
2000-01
1999-00
1998-99
1997-98
1996-97
1995-96
1994-95
1993-94
1992-93
1991-92
1990-91
1988-89
1989-90
1987-88
1986-87
1985-86
1984-85
1983-84
1982-83
1981-82
1980-81
1979-80
1978-79
1977-78
1975-76
1976-77
1974-75
1973-74
1972-73
1971-72
1970-71
30%
State Government Spending:
Changes in Share of General Fund (2002-03 & 2007-08)
20.0%
10.0%
5.0%
0.0%
-0.5%
-1.4%
-0.1%
0.1%
Debt Services
2.9%
1.2%
Transportation
change in share of general fund
15.3%
15.0%
-2.3%
-5.0%
-5.8%
-10.0%
-9.4%
Source: Office of State Budget & Management, Post Legislative Budget Summaries
Reserves &
Adjustments
Natural &
Economic
Resources
Justice &
Public Safety
Health &
Human
Services
General
Government
Universities
Community
Colleges
K-12
-15.0%
AK
AL
AR
AZ
CA
CO
CT
DE
FL
GA
HI
IA
ID
IL
IN
KS
KY
LA
MA
MD
ME
MI
MN
MO
MS
MT
NC
ND
NE
NH
NJ
NM
NV
NY
OH
OK
OR
PA
RI
SC
SD
TN
TX
UT
VA
VT
WA
WI
WV
WY
per-pupil expenditures
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
state (rank)
Source: Public School Forum based upon NEA, Rankings and Estimates Update (Dec.
2007)
$8,000
$7,683
$7,766
$7,536
$6,881
$7,310
$5,032
$6,614
$8,098
$11,667
$9,755
$9,461
$10,372
$8,729
$13,370
$12,879
$10,223
$10,641
$9,557
$9,555
$11,654
$9,281
$10,723
$9,632
$9,249
$15,000
$8,178
$6,709
$7,381
$6,565
$8,025
$7,392
$7,377
$7,586
$11,874
$11,324
$9,327
$8,924
$8,882
$8,997
$9,000
$7,717
$8,005
$7,656
$10,000
$7,610
$6,863
$11,000
$9,365
$14,000
$7,155
$12,000
$10,042
$13,000
$7,113
$7,846
$5,474
$7,935
Ranking Per-Pupil Expenditures by State
US average=$8,717
NC ranks 38=$7,392
$114330492917 3 6 42232135451822322834 5 19 7 132039482738403615 1 2546 2 14472610 8 313744415024 4 331216 9
Per-Pupil Spending for NC & Its Neighbors
per-pupil current expenditures
$10,000
US average=$8,717
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$8,882
$8,729
$7,392
$7,766
GA
NC
SC
TN
VA
24
38
31
44
24
$3,000
$6,881
$2,000
$1,000
$0
state (rank)
Source: NEA, Rankings & Estimates Update (based upon December 2007 data)
General Fund for Education
average expenditure per student
(UNC Spends Almost 2.5 Times More Per Student)
$12,000
$11,000
$10,000
$9,000 $10,214 $10,180
$10,542
$8,000
$10,162
$10,630
$11,113
$9,775 $9,611
$7,000
$6,000
$5,000
$4,000
$3,000
$4,732 $4,684
$4,402 $4,350 $4,651 $4,613 $4,529 $4,539
$2,000
$1,000
$0
199900
200001
200102
2002- 2003- 200403
04
05
K-12
UNC
200506
200607
Source: Public School Forum based upon data from DPI & headcount enrollment from UNC. The final General Fund figures are based
upon data from the Office of State Budget & Management's Post Legislative Budget Summary, Table 6.
County Spending per Student
2,500
2,044
2,000
1,500
1,000
500
2,255
1,435
1,282
1,237
754
315
1,451
917
499
446
546
0
1990-91
Top 10
1995-96
2000-01
State Average
Bottom 10
2005-06
Budget Overview
2008-09 K-12 Budget Proposals
$8,300,000,000
$8,200,000,000
$8,187,431,245
$8,100,000,000
$8,000,000,000
$7,900,000,000
$7,808,500,480
$7,800,000,000
$7,784,078,230
$7,802,046,538
Senate
Conference
7/3/08
$7,708,315,285
$7,700,000,000
$7,600,000,000
$7,500,000,000
$7,400,000,000
Board of
Education
Governor
House
Source: Public School Forum based upon information from the Governor's Office & the General Assembly
Items of Concern…
With only $150 million in surplus for 2008-09,
money available for expansions of supplemental
funding programs are limited.
2008-09
Proposal
State Board
Governor
House
Senate
Low Wealth
Expansion
NO
NO
$2.9 m
$2.9 m
DSSF
Expansion
$86.2 m
NO
$6.0 m
$5.0 m
TOTAL
$86.2 m
$0
$8.9 m
$7.9 m
2008 Short Session: Key Issues

Teacher salary debate


Whether / how to bring to national average?*
How to balance against increases for other state employees?

Guaranteeing ABC bonuses to teachers

Funding enrollment growth – also for UNC and Community
Colleges

Expanding dropout prevention grants ($15M)

Raising DSSF, AIG, special education allotments

LEA concerns with child nutrition, fuel costs

Modest expansions for More at Four, Learn and Earn Online,
and other education programs
*7% increase to national average for teachers = $116M
Funding from the Lottery
Based Upon $1.00 of Sales
Lottery
Administration,
$0.15
School
Construction,
$0.14
Prizes, $0.50
* The General
Assembly gave
additional flexibility to
raise prize amounts
over 50% of the total
IF that will increase
the absolute amount
available for education
transfers.
Note: Reserve fund (5% of original total) is
fully funded and requires no additional
contributions.
Source: Public School Forum based upon data from DPI, Financial & Business Services
Scholarships,
$0.03
Class Size & More
At Four, $0.18
Lottery Revenue Realities
Original estimates of $1.2 B in revenues
Projected
Actual
(2006-07)
Off by…
Scholarships
$40.4 m
$32.6 m
-$7.8 m
Class Size/
More at Four
$201.9 m
$162.7 m
-$39.2 m
Construction
$161.5 m
$130.2 m
-$31.3 m
TOTAL
$403.8 m
$325.5 m
-$78.3 m
But even if projections had been right…
• 82 years to finance the $9.7 B construction backlog
(based on 2007-08 projected funding levels)
• 49 districts would still have gotten less than
$500,000
North Carolina Education Lottery
1996 School Bond
25% high growth
35% ability to pay
40% ADM
2005 Lottery Act
35% ability to pay
65% ADM
A Comparison of the Models
shows:
87 LEAS received LESS money under the Lottery Act model
Counties’ “Ability to Pay” Qualifies
Them for Approximately $49 M in Extra Lottery
Revenue (35% of Available Construction Funds)
57 shaded counties qualify for the extra revenue
based upon an ability to pay component
SOURCE: NCGA, Fiscal Research Division
School Finance Litigation
School Finance Litigation…
Red=Low Wealth Plaintiffs
Blue=Urban Plaintiff-Intervenors
Changing Needs of Students &
Adequate Resources
Every classroom be staffed with a competent,
certified, well-trained teacher…
Every school be led by a well-trained competent
Principal…
Every school be provided, in the most cost effective
manner, the resources necessary…
-Leandro mandates
Who's Accountable?
School Finance Case ISN’T Over
State Responsibility: “The State must
step in with an iron hand and get the
mess straight. If it takes removing an
ineffective Superintendent, Principal,
teacher, or group of teachers and putting
effective, competent ones in their place, so
be it…The State of North Carolina cannot
shirk or delegate its ultimate
responsibility.”
Judge Howard E. Manning, Jr.—4/4/02 memorandum
DSSF Resources Then…
• Started with 16 pilot districts
• Funded at $22.5 million
• New model approved by plaintiffs, defendants &
judge
And now…
• Covers all 115 LEAs
• Funded at $191.6 million for 2007-08 school
year
Kendall Jordan
[email protected]
919-781-6833 x 102
www.ncforum.org