DEL.ICIO.USThe Atlanta Journal-Constitution
Published on: 02/28/08
Two years ago, Cobb County school board members were slashing positions and programs, scrambling for money and promising to build reserves for a rainy day.
With a sagging economy and a down housing market portending potentially skimpier tax collections, Cobb school officials aren't as worried as they might have been. The district's operating reserve fund is flush with cash — well above the one-month reserve target.
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Children in the preschool program head out to the playground at West Cobb Prep. | ||
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The board voted to spend $8 million of it on textbooks and five middle school planning grants at last week's work session.
After years of falling short of one month's operating expenses in the past, the district turned the corner in 2006 with better-than-expected property tax collections, ending that year with $86,049,236 — cash in the bank for unforeseen expenses. By the time books closed on 2007 on June 30, the rainy day fund had swelled to $114,566,316 or 13.40 percent of the fiscal year expenditures, well above the one-month 8.33 percent target. That's according to the school system's annual financial report.
The district became debt free last year, paying off the last of its construction bonds. Capital costs have been shifted to a penny sales tax, saving the district interest on bonds and relieving pressure on the general fund.
Superintendent Fred Sanderson's recommendation to spend some of the reserve and to allocate $10 million of the $114.5 million to the 2009 budget still leaves a healthy fallback cushion of $96.2 million, or 11.25 percent of expenditures.
The snapshot of last year's spending lays the framework for next year's budget, which is in the early development stages. Budget director Brad Johnson said the school district's recommended spending for 2009 will essentially be flat since student enrollment has leveled out.
It will, however, account for Gov. Sonny Perdue's 2.5 percent teacher pay raise recommendation and increasing utility and transportation costs, spokesman Jay Dillon said. About 90 percent of the school system's operating budget is eaten up by teacher and staff salaries and benefits.
By the end of February, budget-planners should have some idea from county tax collector Phil Hogshead what he estimates tax collections might reach this year, Johnson said. That estimate is historically conservative, but is a starting point for the district's budget development. The board will vote on a final budget in June.
Local tax revenues, which account for 53 percent of the school system's operating budget, do not cover capital needs for construction of new schools, upgrades of old ones, land purchases or technology improvements. For that, the district relies on a penny sales tax called a Special Purpose Local Option Sales Tax to fund capital needs. Voters will be asked to renew the current SPLOST for another five years in a September referendum.
RISING EXPENDITURES
1998 2007- Instruction 327.4 million 650.5 million
- Pupil Services 15.9 million 16.8 million
- School and Admin. Services 38.2 million 80.6 million
- Business Services 52.6 million 92.3 million
- Capital Outlay 11.6 million 9.2 million
- Other 3.3 million 5.5 million
TOTAL 449.2 million 855.1 million
COBB SCHOOL MILLAGE RATE
- 1998 21.63
- 2002 20.05
- 2007 19.90
Districts with higher millage rates in 2007: DeKalb, Atlanta City, Rockdale, Gwinnett, Douglas, Clayton. Districts with lower millage rates: Marietta City, Fulton County
Source: Cobb County School District and Cobb County School District "Comprehensive Annual Financial Report" 2007
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