Forsyth County Schools-Where does the money really come from?

Making sure Forsyth County Schools (FCS) are properly funded is essential to their success.  Knowing where FCS gets their funds helps in understanding the policy discussions, who pulls the strings, and what role your School Board, county and state representatives, and the federal government play in the process. As you will see, it is not just from your property taxes.

Highlights from FY24 Forsyth County Schools Budget:

• $311 million (47.70%) State & Federal 
• $341 million (52.30%) Local funds
• $24 million additional for food & nutrition

State and Federal Sources (47.70% or $311,231,022 in 2024)
The primary source of funding is from the state and is based on Quality Basic Education Funding or QBE.  This makes up $308 million of the $311 budgeted in 2024.  It is a formula-based calculation focusing on:

• The number and types of students (grade level, special education, etc.)
• Training and experience of the staff: the more experienced, the greater the allocation, and aligned to 19 instructional programs, 10 general and career education programs, and nine special programs (like gifted students, students with disabilities). The costs covered are salaries and benefits for teachers, paraprofessionals, subject specialists (art, PE, foreign languages, technology) plus materials and equipment for each. Included are funds for administration, facility maintenance and operations, media, and an additional 20 days of instruction.

The money comes from the state's general fund. Schools must submit their actual student population numbers twice a year to the state to get their allocation. The fund is not intended to fund 100% of the costs, and the school district must contribute a minimum of 5 mills from their property tax collection.

Local Sources (52.30% or $341,161,924 in 2024)
As you might expect, the primary source of local funding comes from property taxes on residential and commercial property. The calculation for property taxes is the millage times the assessed value of the property less exemptions. The Forsyth County Board of Assessors, an independent entity from the Board of Commissioners, is responsible for assessments. 

The millage relating to FCS is decided every year by the School Board, and then sent to the County Commissioners, who approve the millage for the entire county. FCS-related millage has two components:

• Millage rate for paying down bonds, generally used for capital expenditures like the expansion of existing facilities or new schools
• Millage for operating expenses

The proposed millage for 2025 is 15.30, of which 1.418 is for bond payment and 5 is required by the State to be collected in order for FCS to receive QBE funding mentioned earlier. For example, $100,000 assessed value less exemptions x .0153 = $2,000.

Discussion about what millage rate to approve directly impacts FCS’s budget. If property values go up, as they have this past year by around 6.89%, and the millage does not change, property owners pay more property taxes and the school gets additional funding from that source.

Another local source of funds is the Title Ad Valorem Tax (TAVT), an upfront tax imposed on the fair market value of motor vehicles in Georgia. The TAVT provided $22 million of the $341 million budget in 2024.

Funds for Food and Nutrition ($23,974,541 in 2024)
Almost all federal funds used by FCS are used for food and nutrition programs, are accounted for separately, and do not form part of the budget approved by the BOE.  

Here is the breakout for 2024:
Federal funds:  $9,327,796 (USDA)
State & Local: $14,646,745

Funds are used for food, supplies and staff primarily. There is an estimated fund balance of $20,590,608 in this program at the end of this school year, coming primarily from the USDA, to be used in future school years.

Bonds and SPLOSTs 
​To fund capital expenditures, FCS can issue bonds and/or have passed Special Purpose Local Option Sales Tax (SPLOSTs). Each is allocated to specific projects and has a start and end date. Funds can be used for construction and renovation or other capital expenditures.

SPLOSTS funds are collected as an add-on to sales tax, are collected by local businesses and paid to the Georgia Department of Revenue, which then passes the funds back to FCS.  Bonds are paid through an add-on to the millage as described earlier.

The benefit of SPLOSTs is that they raise funds without further taxing property owners. After the BOE approves it, it must be passed by a referendum to be placed on a ballot.  

What about Charter Schools and Vouchers?
Charter Schools are run entirely separately from traditional public schools and take away funds from the pool allocated to traditional public schools. Vouchers do exactly the same thing and, while small this year, representing only $140 million in its first year, we believe it to be a trojan horse for moving public money out of public schools and into private schools and homeschooling. More on the impact of vouchers and Charter Schools on public education in the next edition.