Financial Issues of Consolidation-Nov 1 2011 Forum

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Presentation of the financial issues surrounding the proposed consolidation of the Valdosta City and Lowndes County Schools.

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Financial Issues of Consolidation-Nov 1 2011 Forum

  1. 1. Financial Issues Concerning Consolidation Dr. Troy Davis, Assistant SuperintendentMr. Fred Wetherington, Vice Board Chairman Mr. Philip Poole, Board Member Lowndes County Schools Lowndes County Schools Working Together for Excellence Every Day
  2. 2. ConsolidationA Financial Puzzle
  3. 3. Total Local Revenue Both Systems$45,722,633.00
  4. 4. In a consolidated system, Tax Digest received bythe LBOE from Georgia Department of Revenue.Consolidated per mill Value = $2,802,088.00
  5. 5. Lowndes County Schools (To stay as currently funded with consolidation)Consolidated Millage Rate 16.317 millsConsolidated per Mill Value $2,802,088.00Consolidated Local Revenue $45,722,633.00
  6. 6. Community Unification for Educational Excellence, Inc. (CUEE) - http://www.cueeinc.com/What is the request financially?Using CUEE data to find the answer…..
  7. 7. Answer to CUEE’s Question:Using the Community Unification forEducational Excellence, Inc. (CUEE)consolidated projections, one costrequired would be $16,083,474.00http://www.cueeinc.com/support-files/academic_comparison_graphs.pdf
  8. 8. In a consolidated system, CUEE isstating that balance will be achievedat the cost of $2,167.00 more perValdosta City School Systemstudent. Total Cost Annually -$16,083,474.00.
  9. 9. Now, CUEE & Vote Yes state their numbers are our numbers:• Q: Why do county school officials say unification will require $16 million of new funding, or a 5.74 millage increase?• A: To compute the “Real Cost of Consolidation”, the Lowndes County Board of Education takes the “per student” funding difference between the two school systems and develops a millage rate needed to support the funding of a unified system at the highest cost per student. Unfortunately, ONE PLUS ONE DOES NOT EQUAL THREE. This financial model is disingenuous (untruthful) and has little validity since it includes capital projects, which are funded by SPLOST tax revenues, and state and federal funding sources, which are independent of local funding. By including these revenues sources in their calculations, county school officials are using projections that are wrongly inflated and misleading.
  10. 10. After further review, CUEE & Vote Yes revised their position:THE FACTS ABOUT TAXES AND SCHOOL UNIFICATION
  11. 11. After further review, CUEE & Vote Yes revised their position:Q: What would be the per student expenditures for a unified school system?A: There are many variables that play a role in determining the per student expenditure rates since it includes how much money is raised through local millage rates, SPLOST tax revenues that fund capital projects and technology enhancements, and state and federal funding sources, which are independent of local funding sources. Our best estimate would be an average of the current per student expenditures, which would be $11,663 per student.
  12. 12. In a consolidated system, CUEE isstating that balance will NOW beachieved at the cost of $1,084.00more per Valdosta City SchoolSystem student. NEW ANNUALCOST - $8,045,448.00.
  13. 13. If $16,083,474.00, then $16,083,474.00/$2,802,088.00 = 5.74 additional mills annually. If $8,045,448.00, then $8,045,448.00/$2,802,088.00 = 2.871 additional mills annually. OR What are The Facts About Taxes and School Unification?
  14. 14. Costs associated with consolidation
  15. 15. Consolidation will increase costs NEW CLASSESTRANSPORTATION SOFTWARETECHNOLOGY BENEFITS SALARIES LEGAL PER PUPIL EXPENDITURES
  16. 16. Consolidation will increase costs• Transportation - $1,302,840.00• Instructional Software - $2,063,413.00 (Initial)• Instructional Software - $724,354.00 (Annual)• Financial/HR Software - $62,698.00 (Initial)• Financial/HR Software - $30,924.00 (Annual)• Retirement Benefits - $1,448,960.00• Implement IB Program - $300,000.00• Legal Expenses - $220,070.00
  17. 17. Consolidation will increase costs• Additional PK Classes - $604,006.00• Technology WAN - $66,844.00• Technology Infrastructure - $325,000.00 (Initial)
  18. 18. Consolidation will increase local costs• Student Computers (450) - $350,000.00• Teacher Laptops, Docking Stations, Monitors - $910,000.00• Elementary Curriculum Resources - $101,248.00 (Annual)• Elementary Curriculum Resources - $906,541.00 (Initial)
  19. 19. Consolidation will decrease: EQUALIZATION FEDERAL FUNDING FUNDINGSTATE QBE FUNDING TEACHERS NEW SCHOOLS ADMINISTRATORS SALARIES SUPPORT STAFF
  20. 20. Consolidation will Bring Loss of Revenue• Title I Federal Funding - $700,000.00• Title II Federal Funding - $30,000.00• School Nutrition Funding - $27,158.00• QBE Funding Central Office - $780,000.00• CTAE Director – Perkins - $50,000.00• State Equalization Funding - $188,134.00
  21. 21. Consolidation will Bring Loss of Revenue• Race to the Top Grant Funding - $2,100,000.00• Valdosta City Schools Wireless Projects – E-rate Grant - $335,000.00• Future Competitive Grants?
  22. 22. Consolidation Will Decrease Expenses• Superintendent’s Office (VCS) – ($175,793.00)• Teaching Positions – ($3,045,600.00)• Administrative Positions – ($2,115,000.00)• Support Staff Positions – ($812,500.00)• Facilities and Operations Staff – ($260,000.00)
  23. 23. Consolidation will increase millage rates: CUEE - Local Tax Funding of Our Public Schools in the Event of Unification -Thompson Kurrie Jr. - "The LBOE has not brought forward any information from other school systems having consolidated that document the occurrence of such a large increase in property taxes.”
  24. 24. Consolidation will increase millage rates:• Chattanooga - Hamilton County, TN (30% increase)• Knox County, TN (57% increase)• Jackson-Madison County, TN (38% increase)• Sumter County, GA (17% increase)
  25. 25. Consolidation will increase millage rates: Sumter County (17%) 16.317 X 17% = 2.77 mill increase$7,772,683.00
  26. 26. Community Unification for Educational Excellence, Inc. (CUEE) - http://www.cueeinc.com/ What is the request financially?
  27. 27. CUEE - Consolidation will increase costs• Per Pupil Expenditures (CUEE) - $8,045,448.00• Building Schools (CUEE) - $195,282,117.00• Professional Development (CUEE) - $1,500,000.00
  28. 28. CUEE - Consolidation will increase taxes:• Consolidated Millage Rate (Current): 16.317• Professional Development: .534• Consolidation Millage Increase: 2.770• Revenue Losses Identified (CUEE) .534• TOTAL CONSOLIDATED MILLAGE RATE: 19-20 mills
  29. 29. Who is affected, and how wouldconsolidation affect my personal finances? •Home Owner •Property Owner •Renter •Business Owner •Citizen •Children
  30. 30. BASED ON OUR ANALYSIS, THE MILLAGE RATE WILL BE CONTINGENT UPON DECISIONS CONCERNING WINNERS AND LOSERS: Range of Millage Rates?
  31. 31. One important key to consolidation is the demandand need for more money.Consolidation will cost more, and we as taxpayerswill be expected to pay the bill.
  32. 32. Lowndes County SchoolsWorking Together for Excellence Every Day

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