Untitled Document

Attached you will find the proposed budgets for the General Purpose School and Central Cafeteria Funds for the 2013 – 2014 Fiscal Year. These budgets were prepared to further School Board goals, the District’s mission, and our District’s beliefs. In preparing the FY14 budgets, we were confronted by a continued slowed economy, and a decline in revenues from the state ($325,000) and federal governments. 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, four (4) instructional positions and three (3) support positions were eliminated. I anticipate that the County Commission will act on the budgets at its August, 2013 meeting. Particular items of interest concerning the FY 2014 Budgets are as follows:

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.

The additional information concerning expenditures/fund balance (the page following detailed expenditures) indicates that we are taking non-recurring expenditures from fund balance, not from recurring revenue.

This same analysis indicates a calculation that, in my opinion, is a necessary fund balance to maintain for efficient operations (cash flow). Our projected ending fund balance at June 30, 2014 is in-line with this calculation; however, I fully anticipate that this fund balance projection is the worst case scenario. The budget does not contain any additional teaching positions, diesel fuel and gasoline are budgeted at 102.5% of our latest quote prices, and utilities are budgeted with a two and one-half percent (2.50%) increase over the prior year.

Budget category 76100 lists our capital outlay projects for the year.

$55,000 is budgeted for our county-wide athletic programs to help all programs purchase necessary items that the individual school budgets cannot afford to purchase.

$20,000 is budgeted to upgrade Vocational equipment, down $10,000 from the previous 5 years.
The Central Cafeteria Fund is in sound financial condition and only minor capital expenditures are anticipated.

Obion County Board of Education August 12, 2013	Agenda Item: VI.B.

Consider/Approve FY14 Budgets for the General Purpose School and Central Cafeteria Funds

Background Information: Attached you will find the proposed budgets for the General Purpose School and Central Cafeteria Funds for the 2013 – 2014 Fiscal Year. These budgets were prepared to further School Board goals, the District’s mission, and our District’s beliefs. In preparing the FY14 budgets, we were confronted by a continued slowed economy, and a decline in revenues from the state ($325,000) and federal governments. 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, four (4) instructional positions and three (3) support positions were eliminated. I anticipate that the County Commission will act on the budgets at its August, 2013 meeting. Particular items of interest concerning the FY 2014 Budgets are as follows: The budget is prepared with a tax rate for the General Purpose School Fund of $1.16. The General Purpose School Fund will receive $549,675 in T.V.A. State Revenue Sharing funds. The additional $49,675 is a one-time allocation to pay for bonuses for support staff. A $300 bonus is budgeted for all support positions. There is just under $91,000 budgeted to pay a teacher bonus, which should approximate $325 per professional position. 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. The additional information concerning expenditures/fund balance (the page following detailed expenditures) indicates that we are taking non-recurring expenditures from fund balance, not from recurring revenue. This same analysis indicates a calculation that, in my opinion, is a necessary fund balance to maintain for efficient operations (cash flow). Our projected ending fund balance at June 30, 2014 is in-line with this calculation; however, I fully anticipate that this fund balance projection is the worst case scenario. The budget does not contain any additional teaching positions, diesel fuel and gasoline are budgeted at 102.5% of our latest quote prices, and utilities are budgeted with a two and one-half percent (2.50%) increase over the prior year. Budget category 76100 lists our capital outlay projects for the year. $55,000 is budgeted for our county-wide athletic programs to help all programs purchase necessary items that the individual school budgets cannot afford to purchase. $20,000 is budgeted to upgrade Vocational equipment, down $10,000 from the previous 5 years. The Central Cafeteria Fund is in sound financial condition and only minor capital expenditures are anticipated. Staff Recommendation: I recommend approval of the 2013 – 2014 Fiscal Year budgets for the General Purpose School and Central Cafeteria Funds.