April 29, 2016 
2017 Education Budget - Ongoing Austerity Gap
Substantially Reduced by $300 Million; However, Not All Districts Can Afford Raises
The Fiscal Year 2017 state budget contains formulaic increases for both student enrollment and educator training and experience. It also contains $300 million intended to minimize the ongoing austerity reduction to Georgia's Quality Basic Education (QBE) funding formula. The FY 2017 partial austerity restoration leaves about $166 million in ongoing austerity cuts. Local school districts will receive their share of the $300 million based on student enrollment. Policymakers said during the legislative session that they intend for local districts to use the partial austerity restoration to end educator furloughs and increase educator pay by 3 percent. However, because the funding was not an enhancement to the state teacher salary schedule, individual districts will have the legal authority to use the funding flexibly based on local district priorities. Most districts will end employee furloughs and many will pass along some pay raise to educators, though not all districts can afford to end all remaining furlough days and initiate a 3 percent pay increase.      
 
The FY 2017 budget also contains state-funded teacher liability insurance. The cost of this item is not included in the budget, and budgetary language indicates only that the state will "utilize existing funds for the Educators Professional Liability Insurance Program." The state provided state-funded teacher liability insurance in the past, but no claims were ever filed under the previous program and it was phased out. In large part no claim was filed because the legal issues most frequently encountered by educators relate to employment disputes with their local school districts and to certification problems with the Georgia Professional Standards Commission.      

Review the FY 2017 Budget HERE. Department of Education starts on p. 51.

Read the reference to state-funded teacher liability insurance on p. 16, line 502.

Read the reference to austerity restoration intended to give local districts the "flexibility to eliminate teacher furlough days, increase instructional days, and increase teacher salaries" on p. 57, line 1818.

Review the AFY 2016 Budget HERE. Department of Education starts on p. 67.
Margaret Ciccarelli
Director of Legislative Affairs
Josh Stephens
Legislative Policy Analyst
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