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Background Information:
Attached you will find the proposed budget for the General Purpose School and Central Cafeteria Funds for the 2011 – 2012 Fiscal Year. These budgets were prepared to further School Board goals, the District’s mission, and our District’s beliefs. In preparing the FY12 budgets, we were confronted by an extremely recessed economy, as well as the standard inflationary adjustments, while revenues from local, state, and federal governments continue to decline. In preparing the General Purpose School Fund budget, academics was first and foremost, with our main goals of maintaining reasonable and affordable pupil-teacher ratios. In addition, the budget focuses on student and teacher success. Within the current year budget, six and one-half (6.5) administrative/instructional positions and two (2) educational assistant positions were eliminated. I anticipate that the County Commission will act on the budgets at its August, 2011 meeting. Particular items of interest concerning the FY 2012 Budgets are as follows:
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The budget is prepared with a tax rate for the General Purpose School Fund of $1.11, which is a decrease of $.07 from the prior year.
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The General Purpose School Fund will receive an additional $262,500 in T.V.A. State Revenue Sharing funds to offset the decrease in property tax revenue.
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A two percent (2%) cost of living adjustment is budgeted for all staff.
- The budget process is driven by the number of students. The first several pages of the budget document provide a detailed analysis of ADM (average daily membership) over the past several years.
- Notes within the budget are provided for additional analysis and accountability and have been inserted to better track revenues and expenditures.
- Page 108 indicates that we are taking non-recurring expenditures from fund balance, not from recurring revenue.
- Page 108 indicates a calculation that, in my opinion, is a necessary fund balance to maintain for efficient operations (cash flow). Our projected fund balance is below the calculated amount by $16,475; however, I fully anticipate that this fund balance projection is the worst case scenario. The budget does not contain any additional teaching positions, and diesel fuel and gasoline are budgeted at 150% of our lastest bid price.
- Page 106 lists our capital outlay projects for the year, including the balance of the Career Technology facilities. Architect and Construction Manager Fees were encumbered against our 2008 – 2009 Fiscal Year budget.
- $55,000, less the amount already expended by Hillcrest, is budgeted for our county-wide athletic programs to help all programs purchase necessary items that the individual school budgets cannot afford to purchase.
- $30,000 is budgeted to upgrade Vocational equipment – 4th year of upgrades.
- The Central Cafeteria Fund is in sound financial condition and only minor capital expenditures are anticipated.
Staff Recommendation:
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