06/02/2014 – Non-Resident Tuition

Requested Action
It is requested that the Board of Education approve the non-residential student annual tuition fee of $2,491.09 for the 2014-2015 school year, as calculated using the state provided formula, as per the attached spreadsheet.

Presented by: Dr. Michael J. Bell, Chief Financial Officer, Division of Finance

Bell
We have been able to reduce the tuition from $3600 last year to $2490. One of the reasons is that the old calculation was based off the 2012 school year. We’ve revisited this and feel confident this is accurate

Orson
We had this discussion in the agenda setting meeting. This number feels low especially in certain categories. We are a low cost provider to some high cost districts. We are lower than what other districts are charging.

You mentioned this is in accordance with state regulations. Is it state guidance or state regulations?

Bell
Board policy JBCC tells you how to get there.

Orson
So, the state isn’t requiring this figure. We’ve created a policy that has led to this figure.

Bell
Our policy references the state regulation. The policy says “Such tuition shall not exceed the average locally financed per student cost for the preceeding year and shall exclude the local fair share of funds. An estimated amount based upon projected current year expenditures …

It’s a relationship between expenditures and revenues.

Orson
I propose we table this since we don’t have enough information.

Johnson
Will that affect anything else? … It could …

Bell
Carolyn Smith needed this statistic for one of her reports. So, whatever you decide.

Thurmond
Can we remove it from the consent agenda and Mr Bell will check before the business meeting.

Coleman
How many people pay non-resident tuition

Bell
We have in excess of 100 non-resident students, but they are all children of teachers who live outside the county. Those children we don’t charge tuition.

Staff
We serve 3 kids from Decatur and charge them tuition.

Orson
We currently have current specialization that Decatur doesn’t have. Are we providing a fair rate for those specialized services?

Staff
We are earning the state FTE for their category.

Orson
That’s the state portion. What about the increased local portion?

Staff
We do bill them for extra services.

Orson
They are paying us the equivalent of our local allocation instead of their local allocation. Our local allocation is much less.