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Financial Issues of Consolidation-Nov 1 2011 Forum
1. Financial Issues
Concerning Consolidation
Dr. Troy Davis, Assistant Superintendent
Mr. Fred Wetherington, Vice Board Chairman
Mr. Philip Poole, Board Member
Lowndes County Schools
Lowndes County Schools
Working Together for Excellence Every Day
4. In a consolidated system, Tax Digest received by
the LBOE from Georgia Department of Revenue.
Consolidated per mill Value = $2,802,088.00
5. Lowndes County Schools
(To stay as currently funded with consolidation)
Consolidated Millage Rate 16.317 mills
Consolidated per Mill Value $2,802,088.00
Consolidated Local Revenue $45,722,633.00
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. Answer to CUEE’s Question:
Using the Community Unification for
Educational Excellence, Inc. (CUEE)
consolidated projections, one cost
required would be
$16,083,474.00
http://www.cueeinc.com/support-
files/academic_comparison_graphs.pdf
8. In a consolidated system, CUEE is
stating that balance will be achieved
at the cost of $2,167.00 more per
Valdosta City School System
student. Total Cost Annually -
$16,083,474.00.
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. After further review, CUEE & Vote Yes
revised their position:
THE FACTS ABOUT TAXES AND SCHOOL UNIFICATION
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. In a consolidated system, CUEE is
stating that balance will NOW be
achieved at the cost of $1,084.00
more per Valdosta City School
System student. NEW ANNUAL
COST - $8,045,448.00.
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?
19. Consolidation will decrease:
EQUALIZATION
FEDERAL FUNDING
FUNDING
STATE QBE FUNDING
TEACHERS
NEW SCHOOLS ADMINISTRATORS
SALARIES SUPPORT STAFF
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. 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?
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. 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. Consolidation will increase millage rates:
Sumter County (17%)
16.317 X 17%
=
2.77 mill
increase
$7,772,683.00
26. Community Unification for Educational Excellence, Inc. (CUEE) -
http://www.cueeinc.com/
What is the
request
financially?
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
29. Who is affected, and how would
consolidation affect my personal
finances?
•Home Owner
•Property Owner
•Renter
•Business Owner
•Citizen
•Children
30. BASED ON OUR ANALYSIS, THE MILLAGE RATE
WILL BE CONTINGENT UPON DECISIONS
CONCERNING WINNERS AND LOSERS:
Range of Millage Rates?
31. One important key to consolidation is the demand
and need for more money.
Consolidation will cost more, and we as taxpayers
will be expected to pay the bill.