Classrooms First for Georgia Act Becomes Law

Classrooms First for Georgia Act Becomes Law

65 percent of Educational Operating Expenditures to be Spent in the Classroom

ATLANTA – Governor Sonny Perdue signed into law today the Classrooms First for Georgia Act (SB390), an initiative setting a statewide threshold for local school systems to spend at least 65 percent of education funds on classroom expenses.

“The classroom is the hub of learning. There are a lot of infrastructure needs, from food service to transportation to administration, but the classroom is where learning really takes place,” said Governor Sonny Perdue. “Our focus is on the classroom. In the classroom our focus is student achievement, and that is why this threshold is so important.”

Every fiscal year, local school systems will be required to spend a minimum of 65 percent of educational operating expenditures on direct classroom expenditures. A direct classroom expenditure is defined as any cost associated with the interaction between teachers and students. Direct classroom expenditures include:

• Salaries and benefits for teachers and paraprofessionals;
• Costs for instructional materials and supplies;
• Costs associated with classroom related activities, such as field trips, physical education, music and arts; and
• Tuition paid to out-of-state school districts and private institutions for special needs students.

Based on 2003 records, the statewide average among school districts is 63.3 percent. Districts that spend more than 65 percent in the classroom average 73 points higher on the SAT and 6-14 points higher on the Criterion-Referenced Competency Tests (CRCT).

School systems meeting and exceeding student achievement standards may apply for a waiver from the 65 percent rule. School systems that are unable to meet the 65 percent requirement due to extreme conditions such as an Act of God or inordinate energy costs may apply for a hardship waiver. School systems below 65 percent will be expected to increase two percent per year beginning in 2008 until the 65 percent threshold is met.

Operating expenditures include federal, state and local funds and any other funds received by local school systems, such as student activity fees. Operating expenditures do not include capital outlay expenditures, debt or bond payments, interest on debt or bonds, facility leases or rental payments.

SB390, a key component of the Governor’s education agenda, was sponsored by Senator Ronnie Chance and carried in the House of Representatives by Representative Fran Millar.

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