MOBILE COUNTY PUBLIC SCHOOL SYSTEM

FACTS, FINANCIALS & THE FUTURE

1’st Public School in the

State of AlabamaEST. 1836

96 Schools22,000+ Acres of

Property(18,000 Acres of

Timberland)

Enrollment

Approx. 63,000

Students

PersonnelApprox.8,000(4,000

Teachers)

Largest School System

InStateOf

Alabama

Transportation

742 Buses22,000 Miles

per Day1.4 Million

Gallons Fuel Annually

56th Largest SchoolIn the United States

65,000 Meals

Per Day

FACTS

State Revenue

52%

Federal Revenues

20%Local

Revenue22%

Other Revenue

6%

Where Does School Funding Come From ?Fiscal Year 2009/2010

State revenue - Funding received from the Education Trust Fund and other state appropriations  Local revenue - includes all local tax revenue, grants from local agencies, earnings on investments, and charges for services Federal revenue - Revenues originating from federal government agencies such as Individuals with Disabilities Education Act, No Child Left Behind, Child Nutrition Program.  Other revenue - various revenues including local school (admissions, concessions, fund raisers, etc.), E-Rate, Child Nutrition Program Rebates, Transportation charges, indirect cost, bond proceeds, insurance loss recoveries and revenue from auctions of equipment

Types of FundingWhere Does School Funding Come From ?

Education Trust Fund:Source of Funding

TATE FUNDS

Income Tax - 59.6%

Sales Tax – 27.9%

Others – Listed in Decreasing Order of RevenueUtility Tax 6.7%Use Tax 4.3%Mobile Communications Service Tax

.6%Insurance Premium Tax .5%Beer Tax .4%

Note: Percentages Based on State Finance Directors FY 2008-2009 estimated receipts

State General Funds

PAYS FOR:SALARIES & FRINGE BENEFITS

CERTIFIED STAFFTEACHERS

PRINCIPALSASSIST PRINCIPALS

COUNSELORS, LIBRARIANS CAREER TECH DIRECTORS

State Funding of Teachers

ADM ÷ DIVISORS ⁼ NUMBER OF TEACHERS

Number of Teachers for that particular grade

funded by the State

Grade divisors are approved annually by the State Board of Education used to calculate state earned teacher

units

Average Daily Membership-average daily

enrollment for your system during the first twenty days

after Labor Day of the school year

Grades ADM Divisors # of TeachersK-3 10,000 13.8 724.644-6 15,000 21.4 700.937-8 15,000 20.0 750.009-12 20,000 18.0 1,111.11

60,000 3,286.68

State General Funds

PAYS FOR:CLASSROOM INSTRUCTIONAL

SUPPORTSTUDENT MATERIALS

TECHNOLOGYLIBRARY ENHANCEMENT

PROFESSIONAL DEVELOPMENTTEXTBOOKS

OTHER CURRENT EXPENSESALARIES & FRINGE BENEFITS FOR SUPPORT

PERSONNELSTATE REQUIRED SUPPLEMENTS TO THE CHILD

NUTRITION PROGRAMOPERATING EXPENSES

NOTE: ALL FUNDS ARE EARMARKED AND MUST BE SPENT AS ALLOCATED

OTHER STATE FUNDS

• SCHOOL NURSESONE NURSE PER SYSTEM THEN $34.48

PERSTUDENT FOR ADDITIONAL NURSES

• HIGH HOPES• TECHNOLOGY COODINATOR• TRANSPORTATION OPERATIONS• AT RISK• PRESCHOOL PROGRAM• ALABAMA READING INITIATIVE• CHILDREN’S FIRST• AMSTI

2010

CapitalFunds

PAYS FOR:ACQUISTION /CONSTRUCTION OF NEW

SCHOOLSPURCHASE OF LAND/BUILDINGS

BUILDING IMPROVEMENTPURCHASE OF EQUIPMENT/FURNITURENEW SCHOOL BUSES (FLEET RENEWAL)

State

(3 Mill State Ad Valorem Tax)

FEDERAL FUNDSPAYS FOR:SPECIAL EDUCATION STAFF AND SERVICES

CAREER TECH EDUCATION

SERVICES FOR CHILDREN OF POVERTY

CHILD NUTRITION

ROTC (ARMY & NAVY)

OTHER:SEA GRANTE-RATE

American Recovery Re-investment Act

Special Educatio

n$16,000,0

00 State Fiscal

Stabilization

$15,000,000

Entitlement

Funds$25,000,0

00

NOTE: ALL FUNDS ARE EARMARKED AND MUST BE SPENT AS ALLOCATED

LOCAL AD VALOREM TAXESLOCAL SALES TAX

GRANTS FROM LOCAL AGENCIESEARNINGS ON INVESTMENTS

OIL & GAS ROYALTIESOTHER

Local Revenu

e

Local Revenue

PAYS FOR:ADDITIONAL TEACHERS – NOT FUNDED BY THE STATE

ADDITIONAL ASSISTANT PRINCIPALS – NOT FUNDED BY THE STATE

ADDITIONAL SUPPORT OF TRANSPORTATION OPERATIONS

DEBT SERVICESPECIAL EDUCATION AIDES – NOT FUNDED BY FEDERAL

FUNDSLOCAL SCHOOL & CENTRAL OFFICE SUPPORT

PERSONNEL10 MILLS MATCH FOR STATE FUNDS

Per Pupil SpendingMobile County $8,403.43

Montgomery County $7,891.56

Jefferson County $7,910.10

Shelby County $8,570.78

Baldwin County $9,082.33

Huntsville City $9,266.37

Birmingham City $9,335.78

Alabama $8,391.00

North Carolina $7,883.00

Arkansas $8,284.00

Florida $8,514.00

South Carolina $8,533.00

Louisiana $8,928.00

Georgia $9,127.00Note: Information obtained from State Department of Education 2007 Annual Report

Note: Information obtained from U.S. Census Bureau Report on 2007 Per Pupil Spending

National Average

$9,666.00

Where Does the Money GO?

3.5%Utilities

6.5%Materia

ls & Supplie

s

2.0%Books &

Instructional

Materials

73.4% Salaries & Benefits8.1% Purchased Services6.5 % Materials & Supplies4.9% Debt Service3.4% Utilities2.0% Books & Instructional Materials1.7% Capital OutlayEducating Children is a labor-intensive process. For that reason, the largest share of any school system’s budget goes to pay for employees wages & benefits.

2010 BUDGET

2010 BUDGET

Revenues General FundSpecial

Revenue

Debt Service

Fund

Capital Projects

Fund

Enterprise/Internal/Trust

Fund All FundsEarmarked/

Discretionary

State Revenue $301,659,105 $19,320,698 $320,979,803100%

Earmarked

Federal: Revenue $14,817,861 $107,171,670 $119,989,531

100% Earmarked

Local Revenue $106,952,580 $3,875,706 $29,786,339 $140,614,625 * 2%/48%

Local: Local School Sites $10,223,220 $3,542,255 $13,765,475

100% Earmarked

Other Sources $500,000.00 $1,502,782 $1,500 $2,004,282 ** 5%/25%

Indirect Cost $6,001,003 $6,001,003100%

Discretionary

Total Revenue $429,930,549 $120,773,379 $49,108,537 $3,542,255 $603,354,720

REVENUE

* Earmarked10 Mill Match $39,884,460Capital $29,786,339Local CNP $3,875,706

$73,546,505

* * CNP Rebate $1,502,782

88% Earmarked $529,784,09612% Discretionary $73,570,624

$603,354,720

2010 BUDGETExpenditures General Fund Special Revenue

Debt Service Fund

Capital Projects Fund

Enterprise/Internal/Trust

Fund All Funds

Salaries-Certificated $202,700,056 $16,631,538 $219,331,594

Salaries-Support Staff $55,220,273 $27,488,740 $7,431,417 $90,140,430

Employee Benefits $108,785,177 $21,226,487 $3,321,773 $133,333,437

Purchased Services, Utilities, Rentals, $36,475,056 $22,743,565 $7,675,130 $1,152,459 $68,046,210

Materials & Supplies $9,755,212 $34,706,179 $8,449,722 $1,909,278 $54,820,390

Capital Outlay $614,774 $4,882,933 $5,497,707

Other Expenditures $303,705 $421,107 $251,500 $321,446 $1,297,758

Indirect Cost $6,000,998 $6,000,998

Debt Service $4,327,901 $19,444,957 $2,526,282 $26,299,141

Total Expenditures $417,567,380 $129,833,388 $19,444,957 $34,538,756 $3,383,183 $604,767,665

Transfer In $17,178,528 $16,390,896 $21,498,111 $295,567 $249,043 $55,612,145

Transfer Out ($22,991,103) ($6,477,098) ($2,048,083) ($23,846,818) ($249,043) ($55,612,145)

Total Other Sources ($5,812,575) $9,913,798 $19,450,028 ($23,551,251) 0.00 0.00

EXPENDITURES

2010 BUDGET

General FundSpecial

Revenue

Debt Service

Fund

Capital Projects

Fund

Enterprise/Internal/

Trust Fund All Funds

Total Revenue $429,930,549 $120,773,379 0.00 $49,108,537 $3,542,255 $603,354,720

Total Expenditures $417,567,380 $129,833,388 $19,444,957 $34,538,756 $3,383,183 $604,767,665

Total Other Sources ($5,812,575) $9,913,798 $19,450,028 ($23,551,251) 0.00 0.00

Revenue Over (Under) Expenditures $6,550,594 $853,788 $5,070 ($8,981,470) $159,072 ($1,412,945)

Beginning Fund Balance $7,497,324 $18,886,848 $2,765,565 $37,732,840 $2,130,451 $69,013,028

Ending Fund Balance $14,047,918 $19,740,636 $2,770,635 $28,751,370 $2,289,523 $67,600,083

FUND BALANCE

EQUITY IN FUNDING All Alabama Public Schools are funded through the Foundation

Program Funds are distributed to schools based on ADM (Average Enrollment)

and staffing Every school system in Alabama must contribute the equivalent of 10

mills of local property tax to participate in the Foundation Program Some school system receive more local support than others due to

property values across the state Essentially the State pays a smaller share of the cost of the

Foundation Program for “wealthy” systems and a larger share of the cost where the systems are deemed “poorer”

Benefits: Levels the playing field for all school systems, equalizing educational

opportunity Provides every school system with resources needed Does not affect any local taxes above the 10 mill requirement

2011 TAX RENEWALAmendment #3 and Amendment #179 of The Constitution of Alabama, 1901, presently authorizes the collection of special county and district taxes for public school purposes. Since 1915 these taxes have provided the students of Mobile county with teachers, classroom materials and supplies, and much needed improvements to school building and facilities. The 2008 revenue from these 13 mills was $53.4 million, which translates into over 400 teachers and approximately $25 million in capital improvements.This vital source of revenue must be renewed by a vote of the citizens of Mobile County every 20 years. The last renewal was effective October 1, 1991 and will expire September 30, 2011.

2011 TAX RENEWAL13 MILLS EXPIRING IN 2011 FACTS:

NOT A NEW TAX AND IS NOT CONNECTED TO THE 2001 “NEW TAX” VOTE GENERATED $53.4 MILLION IN 2008 Renewal of taxes levied in the early 1900’s General funds receive 7 mills and Capital funds receive 6 mills Equals 6.2% of general fund total revenue and 33.8% of capital fund total revenue

annually Part of the 10 mill match required to receive state general funds and 1 mill match

required to receive state capital funds Provide the majority funding for special schools; Augusta Evans School, Regional

School for the Deaf and Blind, Continuous Learning Center, Faulkner and Bryant Vocational Schools

Without renewal, local capital funds would decrease to approximately $3.6 million per year, significantly reducing building maintenance and repair

Without renewal, the school system would face massive layoffs of personnel and reductions in services to students

There has not been a “NO” vote since these taxes were levied

#1 in Alabama closing the

Achievement Gap

Only 5% of funds spent

on Central Office Administration

96% of MCPSS

achieved AYP

up from 44% in 2004

Increased reserve(Fund

Balance) even with

tough economic

times

6 out of 7 Alabama Torchbearer Schools are in Mobile County

Credit rating

improvement from A

to AA-

Achievements“0” Audit

findings at Central Office

1st day of school vacancies

decreased from 186 in 2007

to 22 in 2009