Obion County Board of Education
May 6, 2013

Background Information:

Subsequent to the adoption of the General Purpose School Fund Budget for the 2012 – 2013 fiscal year, the School System was notified by the Tennessee Department of Education that state funding through the Basic Education Program (BEP) formula for Fiscal Year 2014, which includes increases for salaries, benefits, and insurance, was estimated to decrease by nearly $250,000. To maintain sound budgeting practices, i.e., to ensure recurring expenditures have a recurring revenue source, it is necessary and is in the School System’s best interest to pay Fiscal Year 2014’s note payment prior to June 30, 2013. Additionally, to help offset an expensive textbook adoption series for the 2013 – 2014 school year, funds appropriated and not expended for vocational education textbooks need to be utilized during the current fiscal year for regular instruction textbooks. The General Purpose School Fund Budget must be amended to include said expenditures since all of these additional costs must be accounted for within the General Purpose School Fund. A resolution is attached for the Board’s consideration.

Staff Recommendation:

I recommend approval of the amendment to the 2012 – 2013 fiscal year budget for the General Purpose School Fund.