1

For Further Information Contact:

James Wilson, Superintendent, 404-763-6890 Mike Russell, Associate Superintendent of Operations, 404-763-6841

BOARD WORKSHOP # 5Tuesday, May 23, 2006

3:00 p.m.

Administrative Center

FULTON COUNTY BOARD OF EDUCATION

SUPERINTENDENT’S TENTATIVE BUDGET

FY07 Budget Development Process

2

FULTON COUNTY BOARD OF EDUCATION

FYO7 TENTATIVE BUDGET

General Fund

Table of Contents

Introduction - Budget Calendar 3

Section 1. Tax Digest Information 5-14

Section 2. FY2007 Tentative Balanced Budget 16-18

3

FY2007 BUDGET CALENDAR

The following schedule of activities will guide budget development in the Fulton County School System for the school year 2006-07.

The public is welcome at all meetings.

Activity Date  

Board Roundtable - Budget Work Session #5 5/23/2006 Administrative Center 3:00 p.m.

Approval to advertise Tentative Budget (Board Adoption) 5/23/2006 Administrative Center  

Publish ad for Public Hearings #1 & #2 on Millage Rates (if required) – (submit ad 5/24/06 NLT 12 noon) 5/25/2006  

Publish and send press release on Millage Rates (if required) 5/25/2006  

Publish current digest and five-year history of tax digest 5/25/2006  

Publish ad for salary hearing 5/25/2006  

Publish ad for final budget adoption (submit 5/24/06) 5/25/2006  

Publish ad for Public Hearing #3 on Millage Rates 5/31/2006  

Public Hearing #1 on Millage Rates (if required) 6/1/2006 Administrative Center 10:00 a.m.

Salary Schedule hearing 6/1/2006 Dunwoody Springs Charter 5:00 p.m.

Public Hearing #2 on Millage Rates (if required)6/1/2006 Dunwoody Springs Charter

6:00 p.m.

Budget Workshop #6 - Board Work Session #6 6/1/2006 Dunwoody Springs Charter

7:00 p.m.

(following public hearing on Millage Rates) - (if required)  

Public Hearing #3 on Millage Rates (if required) 6/8/2006 Hamilton E. Holmes ES 6:00 p.m.

Board adopts Final Budget & Final Millage Rates 6/8/2006 Hamilton E. Holmes ES 6:30 p.m.

(May require a called Board meeting depending on the County's Schedule)    

Deadline for Millage Rates to be delivered to Fulton County Commissioners June 13, 2006  

Section 1. Tax Digest Information

5

FY2007 Budget Development ProcessAd Valorem Tax Revenue Presentation Based On Preliminary Digest Released By Fulton County Tax Officials

FY2007 - 5/23/06 FY2007 - 5/23/06

Balanced Budget RollBack Scenario Difference

1. 2005 (Tax Year) Gross M&O Digest $25,346,768,205 $25,346,768,2052. 2005 (Tax Year) M&O Exemptions ($1,260,677,078) ($1,260,677,078)3. 2005 (Tax Year) Net M&O Digest $24,086,091,127 $24,086,091,127

Additions & Adjustments To 2005 M&O Digest 5. 2006 (Tax Year) Reassessment As Released By Fulton County Tax Commissioner As Of Mid-May 2006 $357,258,502 $357,258,5026. 2006 (Tax Year) Real Growth As Released By Fulton County Tax Commissioner As Of Mid-May 2006 $1,831,128,038 $1,831,128,0387. 2006 (Tax Year) Exemptions As Released By Fulton County Tax Commissioner As Of Mid-May 2006 ($84,041,843) ($84,041,843)8. 2006 (Tax Year) Net Additions & Adjustments $2,104,344,697 $2,104,344,697

9. 2006 (Tax Year) Net M&O Digest (3 + 8) $26,190,435,824 $26,190,435,82410. 2006 (Tax Year) Millage Rate - Same As Current Year 17.8250 17.5819 (0.2431) -1.38%11. 2006 (Tax Year) Gross Revenues (Potential Amount To Be Billed, Not Necessarily To Be Collected) $466,844,519 $460,476,38612. 2006 (Tax Year) Potential Amount To Be Collected $456,273,887 $450,033,11713. 2006 (Tax Year) Estimated 1% Collection Fee To Be Paid To Fulton County Government Per Contract ($4,562,739) ($4,500,331)

14. 2006 (Tax Year) Estimated Net Amount To Be Collected (12 -13) $451,711,148 $445,532,786 ($6,178,363)Note: 1% Change (Increase/Decrease) in Collection Rate May Impact Revenue By Approx. $4.6M

15. 2006 (Tax Year) Estimated Real Estate Transfer Tax To Be Collected $3,400,000 $3,400,00016. 2006 (Tax Year) Estimated Railroad Car Tax To Be Collected $100,000 $100,00017. 2006 (Tax Year) Estimated Intangible Recording Fee To Be Collected $8,015,583 $8,015,58318. Back Tax Collections & Interest/Penalty On Tax Collections $2,273,474 $2,273,474

19. 2006 (Tax Year) Total 5/23/06 Estimated Ad Valorem Taxes To Be Collected (14+15+16+17+18) $465,500,205 $459,321,843 ($6,178,363)

20. 2006 (Tax Year) Total 5/11/06 Estimated Ad Valorem Taxes To Be Collected (May 11 Board Workshop) $458,602,585

21. Estimated Additional Ad Valorem Tax Revenues (May 23 Board Workshop) $6,897,620

6

7

8

9

10

Property Tax DigestReassessment and Real Growth History

837,588572,465

737,176

357,259

668,999

514,748407,352

1,831,128

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2003 2004 2005 2006

Reassessments Real Growth

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Sales Ratio Study Property Tax Assessment Level Comparison

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2001 2002 2003 2004 2005

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If The Fulton County Sales Ratio Was Equal To The Metro Atlanta Average, Additional Revenue Collected Would Be Between $6M-$12M.

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Analysis of Average QBE Earnings Per StudentF

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FY03 FY04 FY05 FY06 FY07 Estimate

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Analysis Of The Average Local Fair Share Per StudentF

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$1,200

$1,400

$1,600

$1,800

FY03 FY04 FY05 FY06 FY07 Estimate

Section 2. FY2007 Tentative Balanced Budget

16

 

  Fulton County School System FY2007 Budget Development

Items Not Yet funded In FY2007 Budget

   

Amount Positions

A

Critical Items Based On Priority And Student Needs as Recommended and Approved by Board on Tuesday, April 25, 2006. 

  Restore All IST Positions $2,600,702 33.00   Partially Restore Social Worker Positions $617,012 8.50   Partially Restore Psychologist Positions $768,880 10.00   Partially Restore ESOL Sheltered Program $1,207,412 19.00   Restore One Special Education Coordinator And One Support Positions $157,280 2.00   Partially Restore At Risk Funds $2,000,000    Elementary Band / Orchestra / Instrumental Music Program $4,448,339 70.00

  Total A$11,799,62

6 142.50

B

Other Critical Items to be Presented to Board at May 2006 Budget Workshop    

  Fund Local Prekindergarten Classes (2 Classes, Potential 3 State) $294,000 5.00   Restore All System-Wide Testing Except 9th Grade PSAT $229,280  

 

Restore Cluster Nurses (One Year Only, District-Wide Plan Must Be Developed For FY2008) $739,156 11.00

 

Restore Child Development Center Funding @ McClarin/Independence (One Year Only, FY08 Grants) $140,974  

  Tranquility Special Education Program $50,000    Extended Learning Opportunities and Summer Program $600,000  

 

Alarm Response Officers (1 North/1 South, From Overtime Savings, No Additional Costs) $0 2.00

  Total B $2,053,410 18.00

  I. Total Additional Items (A + B)$13,853,03

6 160.50   Potential Funding Sources    

 Decrease New Initiative: Salary adjustment from salary study committee (38 employees impacted) $100,000  

 Decrease New Initiative: Salary Increase (Approx. 1.4% To All Employees: Est. Cost = $7,146,592) $3,253,408  

  Decrease New Initiative: Half Step adjustment for teachers with 0-3 years $400,000    Additional Property Tax Revenue Per Discussion With County Officials (5/11/06) $2,970,834  

 Additional Property Tax Revenue Per Preliminary Tax Digest From County Officials (5/23/06) $6,897,620  

 Additional State Revenue Per Individual Fulton Schools State QBE Allotment Sheet (04/28/2006) $231,174  

  Total Potential Funding Sources$13,853,03

6 0.00

  II. Total Additional Funding$13,853,03

6 0.00   Difference (II - I) $0 160.50

17

General Fund Budget As Of May 23, 2006 Executive Summary Balanced Budget For Tuesday 05/ 23/ 06 Board Tentative Adoption

General Fund Budget Presentation

FY 05 FY 06 FY 07Actual Estimate Tentative

I. Beginning Fund Balance $127,055,240 $93,597,364 $87,798,332

II. Revenues $609,748,065 $673,361,674 $736,854,592

III. Expenditures $643,205,941 $679,160,706 $736,854,592

IV. Excess/ Deficit (II - III = IV) ($33,457,876) ($5,799,032) $0

V. Ending Fund Balance $93,597,364 $87,798,332 $87,798,332Ending Fund Balance % 14.6% 12.9% 11.9%

18

Fulton County Board of EducationFiscal Year 2006-07 Tentative Budget

Superintendent Tentative Budget Presented to the Board on Tuesday, May 23, 2006

General FundSchool Nutrition

Service FundDebt Service

Fund

Special Revenues

FundInternal

Service FundSelf Insurance

Fund Total All funds

Estimated Beginning Fund Balance, July 1, 2006 $87,798,332 $12,046,260 $5,438,906 $0 $0 $2,178,677 $107,462,175

Total Revenues And Other Resources $736,854,592 $29,479,920 $24,045,031 $39,538,704 $5,166,083 $4,109,549 $839,193,879

Total Appropriations $736,854,592 $31,852,934 $24,045,031 $39,538,704 $5,845,663 $4,109,549 $842,246,473

Estimated Ending Fund Balance, June 30, 2007 $87,798,332 $9,673,246 $5,438,906 $0 -$679,580 $2,178,677 $104,409,581

Motion StatementI move that the Fulton County Board Of Education approve the tentative Fiscal Year 2006-2007 budget in the total expenditure amount of $842,246,473 as presented.