Georgia School Funding Association

DATA

Effect of Inflation on Under-funding of QBE in FY 07

     Inflation-Adjusted Funding of QBE in FY 07
         (if costs other than those for certificated personnel had increased at the governmental rate of inflation since FY 01)
[A] [B] [C] [D] [E] [F] [G] [H] [I] [L] [J] [M]  [N] 
Actual Related Required Required Other  Inflation  Deficits in QBE
General Fund Per FTE QBE Allotments Per FTE Local Funds in Per FTE Salary Costs Costs Adjusted Adjusted Per FTE Allotments Needed   Per FTE 
Line Categories Expenditures in FY 07 to School Systems in FY 07 Excess of QBE in FY 07 in QBE for Inflation QBE Allotments Notes in FY 07 to Cover Inflation  in FY 07 
1 Direct instruction - Salaries  $     8,308,733,920      5,167
2 Pupil Services - Salaries            271,946,522         169
3 Subtotal  $     8,580,680,442      5,337      6,287,033,694      3,910      2,293,646,748     1,426
4 Social Workers & Psychologists           75,148,362           47         (75,148,362)        (47) 1
5 20 Days Additional Instruction           55,876,014           35         (55,876,014)        (35)
6 Special Ed. Itinerant                 774,409             0              (774,409)          (0)
7 Special Ed. Supplemental Speech                 2,923,019             2           (2,923,019)          (2)
8 Subtotal for Salaries   $     8,580,680,442      5,337      6,421,755,498      3,994      2,158,924,944     1,343  6,421,755,498                       -     6,421,755,498 2    3,994
9 Textbooks, Supplies, & Other            309,105,258         192         143,713,368           89         165,391,890        103                      -        151,592,246      151,592,246 3         94             (7,878,878)           (5)
10 Nursing Services              53,712,980           33           30,000,000           19           23,712,980          15                      -          43,188,033        43,188,033 4         27           (13,188,033)           (8)
11 Instruction & Pupil Services  $     8,943,498,680      5,562      6,595,468,866      4,102     2,348,029,814 1,460   6,421,755,498   194,780,279  6,616,535,777    4,115
12 Media Center - Salaries            232,839,784         145         160,611,466         100           72,228,318          45     160,611,466                       -        160,611,466 2       100
13 Media Materials              21,292,459           13           20,950,859           13                341,600       0.21                      -          40,325,982        40,325,982 5         25           (19,375,123)         (12)
14 School Administration            828,388,049         515         360,440,890         224         467,947,159        291     349,144,726        14,438,888      363,583,614 2,6,7       226             (3,142,724)           (2)
15 General Administration            293,112,838         182         125,182,971           78         167,929,867        104     100,437,088        43,188,033      143,625,121 1,2,7         89           (18,442,150)         (11)
16 Instructional Support            520,946,986         324                          -             -           520,946,986        324                      -                         -                         -           -  
17 Staff Development                             -              -             35,892,274           22         (35,892,274)        (22)                      -          61,035,656        61,035,656 8         38           (25,143,382)         (16)
18 Facility Maintenance          1,039,272,376         646         479,152,547         298         560,119,829        348                      -        608,700,432      608,700,432 9       379         (129,547,885)         (81)
19 Mid-term hold-harmless                             -              -             12,892,998             8         (12,892,998)          (8)                      -          12,892,998        12,892,998           8
20 Transportation             654,762,482         407         166,452,130         104         488,310,352        304                      -        236,955,339      236,955,339 10       147           (70,503,209)         (44)
21 Sparsity Grants                             -              -               6,319,039             4           (6,319,039)          (4)                      -            6,319,039          6,319,039           4
22 Migrant Education                             -              -                  259,509             0              (259,509)          (0)                      -               259,509             259,509      0.16
23 Other              33,396,672           21                          -             -             33,396,672          21                      -                         -                         -           -      
24 Subtotals  $   12,567,510,326      7,816      7,963,623,549      4,953      4,603,886,777     2,863  7,031,948,778   1,218,896,154   8,250,844,932 11    5,131         (287,221,383)       (179)
25 Austerity Reductions          169,745,895        106         (169,745,895)       (106)
26 Basic Instructional Program in QBE      4,773,632,672     2,969         (456,967,278)       (284)
27 Percent of Actual Expenditures 100% 63% -4%
28 Percent of QBE Foundation 158% 100% -6%
29 Count of Students for QBE                 1,607,894  FTE 
Notes:
1. Includes the QBE Allotments in Central Administration for Social Workers and Psychologists in the funding for Pupil Services, where these expenditures are reported.
2. Assumes that the number of positions, salaries, and benefits in the QBE Formula represent the minimum staffing and personnel costs required by QBE. The QBE allotments for the cost of the certificated positions in Direct 
     Instruction and Pupil Services are 74.8% of the actual expenditures for this purpose.
3. Based on $94.52 per FTE in FY 07, which equals the per-student allocation in FY 01 adjusted for inflation. For comparison, the overall estimate in the preliminary IE2 cost model (without including equipment, technology, or 
    employee travel) is $287 per FTE (based on $300 per FTE in grades K-5, $275 per FTE in grades 6-8, and $275 per FTE in grades 9-12).
4. Based on $28.47 per FTE in FY 07, which equals the per-student allocation in FY 01 adjusted for inflation. These funds are shown as non-salary costs since they do not involve certificated positions. For comparison, the
    overall estimate in the preliminary IE2 cost model is $87 per FTE (based on $110.04  per FTE in grades K-5, $83.26 per FTE in grades 6-8, and $51.14 per FTE in grades 9-12). 
5. Based on $25.14 per FTE in FY 07, which equals the per-student allocation in FY 01 adjusted for inflation.
6. Includes $5,361,125 in the Categorical Grant for Principal Supplements. 
7. Reflects non-salary costs for School Administration and Central Administration based on allocations of $9.52 per FTE and $28.47 per FTE respectively, which equal the per-student  allocations in FY 01 adjusted for inflation.
8. Based on $38.11 per FTE in FY 07, which equals the per-student allocation in FY 01 adjusted for inflation. For comparison, an allocation equal to 1.5% of the base salaries for certificated employees as set forth in the QBE 
    Act and specified before the temporary reduction to 1.0% in FY 02 is  $   53,838,411 or $33.48 per FTE.
9. Based on $379.53 per FTE in FY 07, which equals the per-student allocation in FY 01 with inflation. For comparison, 90% of the actual expenditures in FY 07 for non-salary costs and the same percentage of salary costs 
    that the QBE allotments for the salaries and benefits related to Direct Instruction and Pupil Services bear to the actual expenditures for this purpose would yield an estimate of $538 per FTE. For further comparison, the estimate 
    in the preliminary IE2 cost model is $600 per FTE.
10. Based on $156.20 per FTE in FY 07, which equals the per-student allocation in FY 01 with inflation. For comparison, 90% of the actual expenditures in FY 07 for non-salary costs and the same percentage of salary costs
      that the QBE allotments for the salaries and benefits related to Direct Instruction and Pupil Services bear to the actual expenditures for this purpose would yield an estimate of $330 per FTE. For further comparison, the
      estimate in the preliminary IE2 cost model is $358 per FTE.
11. Includes the Local Five Mill Share, which is part of the funding for the basic instructional program in QBE, but does not include Equalization Grants, which are intended to pay supplemental costs beyond the basic program. 
The minimum underfunding of QBE shown in Column M reflects the extent to which the QBE allotments in FY 07 are less than what they would have been if the non-salary components in FY 01 had been updated to FY 07 at the
governmental inflation rate over this period as calculated by the Bureau of Economic Analysis. The inflation-adjusted QBE allotments shown in Column I are calculated by combining the allocations for the certificated personnel
that were required by QBE in FY 07 (in Column G) and the inflation-adjusted non-salary costs for other school operations (in Column H) that existed in FY 01.
The data for General Fund Expenditures shown in Column A come from the OSA Report Card for FY 07 (excluding restricted federal programs, construction, and school nutrition) and subtotals from the DE 46 reports submitted 
by local systems, and the data on QBE Allotments shown in Column C come from the GDOE Statewide Earnings Sheet for FY 07. The estimates for adjusted QBE allotments do not represent the cost of an adequate education.