Press Release

Board Approves Fiscal Year 09 Budget
Includes pay increase for all employees, fuel & utility increases

The Cobb County Board of Education has approved a balanced budget for Fiscal Year 2009 that provides a 2.1 percent pay raise for all employees, supports the opening of two new schools, hires 140 additional special education teachers, provides for anticipated increases in fuel and utility costs, and maintains the same tax rate for property owners.

The FY2009 general fund budget, approved unanimously at the June 26, 2008 regular board meeting, anticipates $948,189,141 in revenue and the same in expenditures. Budgeted revenues and expenditures represent an increase of 4.33 percent over FY2008. The budget provides for a 2.1 percent pay increase for teachers and all other district employees (which is equivalent to 2.5 percent on the state salary scale), sets the District’s reserve fund at $106.5 million, and is based on an estimated enrollment of 104,929 students. The average expense per student is $9,036. Other highlights of the FY2009 budget include:

• $8 million to hire 140 additional special education teachers. The district’s special education needs have grown disproportionately in recent years due to an increasing special needs population and new federal requirements. The combination has resulted in the need for many new special education teachers.

• $2.4 million in additional funds to pay for utilities such as water, sewer, natural gas and electricity.

• $1.75 million in additional funds to cover increased fuel costs.

• $840,632 to cover supplies at two new schools that will open in August – Allatoona High School and Pickett’s Mill Elementary School.

“Once again we were able to approve a balanced budget that provides the same high level of educational programs for Cobb County students, and keeps the same low tax rate for Cobb County property owners,” said Betty Gray, chair of the Board of Education. “This budget reflects a lot of hard work on the part of board members and school district staff. It proved a difficult project because of the restrictions that have been placed on public education funding in recent years – and that doesn’t include the tax reform efforts that almost passed the Legislature this year that, had they passed, would have severely impacted our finances. Despite all the challenges to education funding, the Cobb County School District is in very strong financial shape heading into the 2008-2009 school year.”

During the 2008 General Assembly, the state Legislature considered several tax reform bills that would have had significant impact on funding for public education in Georgia. Those bills included the elimination of property tax to be replaced by a statewide sales tax, and the elimination of the vehicle tag tax. None of the tax reform measures passed, but many are likely to be reconsidered in 2009. State funding represents about 47 percent of the school district’s total budget.

In February 2007, the school board used $184 million in SPLOST funds to pay off the last remaining debt from school construction bonds that had been issued in 1995. With that long-standing debt eliminated, the school board was able to lower the school property tax rate to 18.9 mils, a savings of $65 for the owner of a house assessed at $165,000 (Cobb County average). That millage rate is expected to stay the same under the newly approved budget and will receive the school board’s final approval in July. Currently, Cobb’s average school property tax bill is lower than the Atlanta, DeKalb, Fulton and Gwinnett school systems.

Details of the FY2009 Cobb County School District budget, as well as video presentations from its development, are available online at http://www.cobbk12.org/finance/budget.htm.

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