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Formula winners, losers
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Last week we began a look at funding for formula driven agencies. As the state budget has shrunk over the past 18 months, formula funding for k-12 and higher education increased due to Georgia’s population and resulting enrollment growth.

As revenues have shrunk but growth increased formula allocations, there are winners and losers in K-12 and Higher Education. This week we will focus on k-12 formulas, Quality Basic Education and Equalization — who wins and who loses.

Education Funding Formula Reductions

The state funds K-12 education through two primary formulas: Quality Basic Education (QBE) and Quality Basic Education Equalization (Equalization). QBE is the basic foundation program, which provides a set amount of funding per student. Equalization provides funding to help shore up a system’s tax base.

Quality Basic Education

Between FY02 and FY05, declining economic conditions forced the state to make across the board austerity reductions to state agencies in order to maintain a balanced budget. The total QBE formula earnings are reduced by this amount. While the Department of Education’s budget has grown in conjunction with student population since FY05, the formula has never been fully funded. This “austerity reduction” does not necessarily mean that education funding declined but that school districts could have earned more in QBE funding if the formula had been fully funded. For example, school districts could have earned around $143 million in additional funds if the formula were fully funded in FY08. 

QBE funding trends are as follows:

• FY06, $5.49 billion

• FY07, $6.15 billion

• FY08, $6.58 billion

• FY09, $6.6 billion (adjusted for use of surpluses to cover the State Health Benefit Plan)

• FY10, $6.76 billion (adjusted for federal stimulus funds)

This represents 23 percent growth from FY06 to FY10, including stimulus. In the FY10 budget, the QBE formula was reduced by $654 million. However, this reduction was offset by $413.1 million in federal stimulus funds and transfers of funding from other education programs.  
The FY10 total will maintain QBE per pupil spending at $4,148, which is equivalent to FY08 inflation adjusted per pupil spending and is greater in both real and nominal amounts than the prior five years of funding. This increase in QBE will help offset reductions in other education programs such as pupil transportation, graduation coaches and the equalization formula.  

Equalization

In addition to the primary Quality Basic Education formula used to fund school systems statewide, approximately three out of four school systems also receive funding through the equalization program. While funding for QBE has held steady, the state has made some reductions in the growth of equalization funding. However, some school systems have also seen reductions in funding simply because their formula based allocations have changed over time.

Equalization is designed to narrow the spending gap per pupil by reducing the disparity between the tax bases of Georgia’s school systems. This system ensures that school districts can raise equivalent amounts on a per mill per student basis. This formula ensures that all school systems can raise the same amount per mill per student (up to 15 mills) as the system at the 75th percentile system in the state.  

This formula has seen significant growth in the past two years. Already a $458 million program in FY08, the FY10 formula earnings exceeded $630 million. Again, as with QBE, these numbers reflect amounts called for under the formula, not the actual budgeted amount for the program.

What has happened is that several large fast growing counties have seen growth in student population outstrip the ability of their tax base to keep up, and in the past two years, they have become eligible for increasingly larger portions of the funding.  

Ten systems alone accounted for over $100 million of this growth, with the top two, Gwinnett and Clayton, growing by nearly $50 million.  

As a result from FY08 to FY10:

• Gwinnett saw formula earnings increase 493 percent

• Bibb saw formula earnings increase 330 percent

• Clayton saw formula earnings increase 113 percent

• Henry saw formula earnings increase 109 percent

However, many growing school districts with strong tax bases have not seen the same kind of growth in their equalization funding from FY08 to FY10: 

• Schley saw formula earnings increase 9 percent

• Effingham saw formula earnings decrease 1 percent

•  Long saw formula earnings decrease 31 percent

• Bryan saw formula earnings decrease 35 percent

Several large or growing districts with strong tax bases do not receive any equalization funding at all. These include Fulton, Atlanta, Cobb, DeKalb, Cherokee and Forsyth counties.

Next week:  Equalization continued — budgetary choices and who are the winners and losers.

I may be reached at
234 State Capitol, Atlanta, GA 30334
(404) 656-5038 (phone)
(404) 657-7094 (fax)
E-mail at Jack.Hill@senate.ga.gov
Or call toll-free at
1-800-367-3334 day or night
Reidsville office: (912) 557-3811

In Effingham County, Progress Starts With a Plan
Guest Editorial by Susan Kraut, President/CEO of Effingham County Chamber of Commerce
Susan Kraut column
A sold-out crowd of more than 150 business and community leaders gathered at Effingham’s New Ebenezer Retreat Center Sept. 24 for the Chamber of Commerce’s annual State of the County Luncheon, hearing updates on economic growth, education, and infrastructure across Effingham County. (Submitted photo)

At last Wednesday’s sold-out State of the County luncheon, more than 150 business and community leaders heard a message that resonated throughout the program: We have a plan, and we’re sticking to it.

Effingham County City Manager Tim Callanan opened his remarks with that thought. It was simple, but powerful. In an era when news feeds churn with controversy and change, it served as a reminder that behind the scenes, steady planning is happening – and those plans are beginning to bear fruit.

Businesses and residents often express frustration about roads, zoning, parks, schools or economic development, feeling that growth is outpacing action. The truth, as Callanan underscored, is that many of those actions are already underway, rooted in master plans that cover everything from transportation and stormwater to parks, communications and public safety.

The challenge is that plans only matter if people know they exist. Too often, businesses and citizens forget these plans are in place, don’t know where to find them or don’t realize how to weigh in at the right moments. When that happens, the community loses the chance to shape its own future and to express the value of those plans – why they matter and why they’re worth supporting.

Planning delivers progress

Last week’s luncheon highlighted how “plans” translate into progress. Mayor Kevin Exley shared Rincon’s ranking as one of Georgia’s safest cities and the city’s launch of the Citizen Central app – a small but meaningful step toward accessible local government. Springfield’s new city manager, Lauren Eargle, outlined a capital improvement plan that includes sidewalks, drainage and playgrounds, along with the less glamorous but vital work of a $35 million wastewater plant upgrade. Guyton’s city manager, Bill Lindsey, discussed contracting with planning consultants, winning grants for sidewalks, and reinvesting in Bazemore Park and downtown revitalization. These aren’t random acts; they’re evidence of intentional planning.

The school district provided another example when Superintendent Yancy Ford noted that Effingham now serves nearly 14,500 students speaking 33 languages. That diversity is an asset – but it also requires careful, proactive investment to maintain the high standards families expect. His most powerful point concerned ESPLOST, the 1-cent Education Special Purpose Local Option Sales Tax. Thanks to community support over the years, ESPLOST has built classrooms, purchased buses, enhanced safety measures, provided Chromebooks to all students, added security cameras and access-control systems, created inclusive playgrounds and athletic facilities open to the community, supported hands-on learning spaces like Honey Ridge, and established the College & Career Academy – a facility credited by Ford as helping lift the district’s graduation rate above 90% and expanding career pathways for a rapidly diversifying student body. And it has done so without incurring long-term debt.

Why ESPLOST matters

Among these examples of planning, none is clearer than ESPLOST — a long-term, voter-approved blueprint for funding education, renewed every five years to stay ahead of growth. The November ballot will again include the ESPLOST renewal, giving voters the opportunity to continue this proven approach to funding school facilities, technology, safety, transportation, inclusive playgrounds and community-accessible athletic fields. Renewing ESPLOST does not create a new tax; it simply extends the existing 1-cent sales tax, allowing residents, visitors and businesses to contribute to improvements that benefit every student. Without it, many of the projects parents and community members count on – such as new buses, safer schools, modern classrooms, career pathways and accessible playgrounds – would stall or require long-term debt.

Renewing ESPLOST is about more than bricks and mortar. It is not a reactionary measure but part of an intentional, ongoing plan to manage growth and maintain education – reinforcing the theme that plans become progress. As the district’s population becomes increasingly diverse and enrollment continues to rise, sustained ESPLOST funding is crucial to scaling programs, expanding facilities and maintaining the high graduation rates and opportunities that families expect. It is about protecting Effingham County’s tradition of educational excellence, maintaining property values and ensuring the workforce being prepared in our schools is ready to meet the needs of local employers. It is an investment in students, families and the future of our communities.

A call to the community

Effingham County is growing. Growth brings challenges, but it also brings opportunities. As the luncheon demonstrated, leaders at every level are working to guide that growth thoughtfully. The next step belongs to business owners, parents and neighbors – to lean in, stay informed and participate.

When hearing about a master plan, a referendum or a public meeting, don’t assume it is someone else’s job. Look up the plan, attend the forum, ask questions and cast a vote. That is how plans become progress – and how a yes vote on ESPLOST reaffirms and continues the community’s long-term plan for educational excellence, reinvesting in Effingham County’s future.