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.