NC Budget Basics. Where We Are Just as NC schools are showing significant progress, our budget...

NC Budget Basics

Where We Are

Just as NC schools are showing significant progress, our budget shortfall presents a significant gap.

Situation Analysis

• NC budget shortfall of about$3.5 billion for 2011-12 fiscal year.

• Causes: – end of federal stabilization funds;

– end of some state taxes;

– end of nonrecurring cuts;

– economic recovery still slow.

Situation Analysis

• Public school budgets have been cut for three consecutive years.

• Yet, with approximately 40 percent of the state’s overall budget tied up in public schools, it’s tough to reach spending cut targets without impact to public schools.

Basic Facts

• State funds total approximately $7.2 billion of public school funding or about 65 percent of the money schools spend to operateeach year.

• Local funds = 25 percent;Federal funds = 10 percent.

Trend over Time

How NC Ranks

North Carolina ranks 45th inthe nation in per-pupil spending.

Common Questions

• Why are schools always on the chopping block?

NC’s Public School Fund is the largest

chunk of the state budget’s General Fund.

Common Questions

• What about the lottery funds –won’t they help?

Lottery funds do help – but they make up only about 3.9 percent of the budget. And, they’re designated for specific purposes –K-3 teachers, More at Four, school construction and scholarships.

Common Questions

• Can’t we just cut administration and leave teachers alone?

Eliminating all administration (NCDPI, central office staff, principals/assistant principals) would total $478 million –less than half of the possible $1 billionin targeted cuts. And who would handle the MANY details of running schools?

Common Questions

• Why not cut out testing? Wouldn’t that save a lot of money?

Cutting out all testing would save about$11 million - far short of our needed cuts. Also, remember, NC is required to do some testing under federal and state laws.

Common Questions

• Won’t the federal Race to the Top funds help solve our budget problem?

Race to the Top is providing nearly $400 million over four years to North Carolina - but the funds must go for specific purposes and not for general use. Funds are a one-time allocation.

Understanding theBuncombe County Schools

Budget

Total 2010-11 Budget: $277 Million

18%

5%

77%

Operating

Capital

Enterprise

How much do we have?

(People, Programs, Supplies)

(Facilities, Equipment)

(Self-funding, such as Child Nutrition)

Sources of OperatingRevenue Federal

17%

Local25%

State58%

Where does our funding come from?

PEOPLE!

HumanResources

Other

84%

16%

Where does our $223 million Operating

Budget go?

Highly qualified people

Buncombe County Schoolsranks 19th in the U.S.

in the # ofNational Board Certified Teachers—

the highest credential in theteaching profession

On average, it cost North Carolinians $142,027 to educate

one student K-through high school.

Some NC public school systemsspend as much as $265,395!

Value for the dollar…

-John W. Pope Civitas Institute

But in Buncombe County, we spend only $127,294

to educate a student K-12.

AND, our graduation rate is among the highest in the state.

Value for the taxpayer’s dollar…

There’s value in the Central Office, too…with only about

1 C.O. administrator per 1,000 students, BCS has one of the

leanest administrations in the state.

Effective and Efficient

Quality Teachers,Dedicated Personnel

+ Fiscal Responsibility= Results

But for how long?

Next Steps

• Stay informed through news media, through NCDPI and your associations.

• Communicate how state and local reductions will affect your schools.

• Reach out to legislators and key stakeholders.

Support our kids.Invest in our future.

Fund Schools First.