Obion County Board of Education
November 1, 2010

Background Information:

The attached resolution creates a new subfund (550) within the School Federal Projects Budget. After the Board adopted the School Federal Projects Budget on June 7, 2010, the Federal government passed a ten billion dollar ($10,000,000,000) Education Jobs Program. These funds were distributed to the States and the Department of Education allocated the funds to the school systems based upon the Basic Education Program (BEP) funding formula. Obion County was awarded $887,456. These funds can only be used for school-level employee compensation and benefits necessary to, among other things, retain existing employees. The positions in this budget have been transferred from the General Purpose School Fund and represent positions retained above and beyond those positions funded through our normal BEP allocation for salaries and benefits. This is a one-time distribution of funds; therefore, to be fiscally responsible, we must use these funds for non-recurring expenditures. The positions transferred into this program for the 2010 – 2011 fiscal year will be transferred back to the General Purpose School Fund for the 2011 – 2012 fiscal year.

Staff Recommendation:

I recommend approval of the amendment to the 2010 – 2011 fiscal year budget for the School Federal Projects Fund.