Financial Issues Concerning Consolidation

Dr. Troy Davis, Assistant SuperintendentMr. Fred Wetherington, Vice Board Chairman

Mr. Philip Poole, Board MemberLowndes County Schools

Lowndes County SchoolsWorking Together for Excellence Every Day

ConsolidationA Financial Puzzle

$45,722,633.00

Total Local Revenue

Both Systems

In a consolidated system, Tax Digest received by the LBOE from Georgia Department of Revenue. Consolidated per mill Value = $2,802,088.00

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

Community Unification for Educational Excellence, Inc. (CUEE) - http://www.cueeinc.com/

What is the request financially?

Using CUEE data to find the answer…..

Answer to CUEE’s Question:

Using the Community Unification for Educational Excellence, Inc. (CUEE) consolidated projections, one cost required would be

$16,083,474.00http://www.cueeinc.com/support-files/academic_comparison_graphs.pdf

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.

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.

After further review, CUEE & Vote Yes revised their position:

THE FACTS ABOUT TAXES AND SCHOOL UNIFICATION

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.

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.

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?

Costs associated with consolidation

Consolidation will increase costs

TECHNOLOGY

NEW CLASSESTRANSPORTATION

BENEFITS

SALARIES

SOFTWARE

PER PUPIL EXPENDITURES

LEGAL

• 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

Consolidation will increase costs

• Additional PK Classes - $604,006.00

• Technology WAN - $66,844.00

• Technology Infrastructure - $325,000.00 (Initial)

Consolidation will increase 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)

Consolidation will increase local costs

Consolidation will decrease:

STATE QBE FUNDING

EQUALIZATION FUNDINGFEDERAL FUNDING

ADMINISTRATORSNEW SCHOOLS

TEACHERS

SALARIES SUPPORT STAFF

• 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

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?

Consolidation will Bring Loss of Revenue

• 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)

Consolidation Will Decrease Expenses

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.”

• Chattanooga - Hamilton County, TN (30% increase)

• Knox County, TN (57% increase)

• Jackson-Madison County, TN (38% increase)

• Sumter County, GA (17% increase)

Consolidation will increase millage rates:

16.317 X 17% =

2.77 mill increase

$7,772,683.00

Consolidation will increase millage rates:Sumter County (17%)

Community Unification for Educational Excellence, Inc. (CUEE) - http://www.cueeinc.com/

What is the request financially?

• Per Pupil Expenditures (CUEE) - $8,045,448.00

• Building Schools (CUEE) - $195,282,117.00

• Professional Development (CUEE) - $1,500,000.00

CUEE - Consolidation will increase costs

• 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

CUEE - Consolidation will increase taxes:

Who is affected, and how would consolidation affect my personal

finances?

•Home Owner•Property Owner•Renter•Business Owner•Citizen•Children

Range of Millage Rates?

BASED ON OUR ANALYSIS, THE MILLAGE RATE WILL BE CONTINGENT UPON DECISIONS CONCERNING WINNERS AND LOSERS:

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.

Down to Brass Tacks

Lowndes County SchoolsWorking Together for Excellence Every Day