Fulton County Schools CFO warns of impending financial crisis

Fulton County Schools CFO Marvin Dereef presented a billion budget proposal for Fiscal Year that came with financial warnings Provided by Fulton County Schools The Fulton County Board of Coaching approved a tentative billion budget for Fiscal Year but it came with a warning of financial problems coming in the next five years Superintendent Mike Looney communicated Board President Kristin McCabe during the school board s May meeting that in the next four to five years the school district will face the the greater part formidable financial challenges it has experienced in a long time Without mincing words we re on a collision subject to insolvency unless we cut expenses raise revenue or a few combination of both Looney declared McCabe disclosed the school board made tough decisions this year including instituting school closures and redistricting The bleak financial outlook will require them to make more tough decisions in the next sparse years Fulton County Schools Chief Financial Officer Marvin Dereef noted the proposed General Fund was billion This fund supports the day-to-day operations of the school district including salaries academic programs participant services and transportation Other elements of the budget include million for capital improvements funded through E-SPLOST million in special revenue funds million for school nutrition million for the pension fund million for participant activity funds Dereef revealed that based on historical spending patterns the projected year-end fund balance for FY will be about million That amount represents nearly percent of the general fund budget McCabe reported the school district increased special training funding by percent over the past four years up to million She noted the federal ruling body should contribute percent of the cost for special coaching but it only gives Fulton seven percent of the revenue needed Looney disclosed that special learning is underfunded by the federal establishment Wellbeing care costs for the school district increased by percent in the last four years adding almost million year over year McCabe reported In Georgia s instruction funding formula Quality Basic Teaching QBE a school district earns funding based on its number of full-time equivalent students the training and experience of certified staff and the robustness insurance eligibility of its certified staff However the funding formula s Local Fair Share provisions have Fulton County Schools giving back state QBE funding equivalent to mills worth of property taxes McCabe revealed the estimated Local Fair Share was million cut out of state QBE funding We don t know exactly what our earnings are at this point but it appears that it will be close to percent of what we earn that we will be giving back to the state McCabe commented Homestead tax exemptions also are rising and McCabe revealed the school district anticipates million in total exemptions An additional million may be cut through exemptions if a senior exemption on the ballot in November passes The post Fulton County Schools CFO warns of impending financial predicament appeared first on Rough Draft Atlanta