After paying $364.5 million in recurring expenses, the district will have about $12.8 million left to spend. A list of requests that includes additional funding for literacy intervention, special education and a pre-K expansion was trimmed down from $16.6 million to about $10.2 million, positioning the district to address those needs without creating a deficit.
“Two weeks ago we were in a place of needing to go away and do a whole lot of work,” Superintendent Jeannie Stone said. “Tonight, we are in a good place.”
The $10.2 million in new expenses does not include raises, Stone said. While staff has not yet made a recommendation on compensation increases, it remains committed to rewarding its employees and staying competitive with nearby districts, she added.
“We have to be mindful of the current economy, current unemployment rate and all of the factors that will go into the final decision for the board to make in terms of compensation,” Stone said.
Factors considered when putting together the budget were academic goals, staffing and financial stability, Stone said.
“At all times, we have to make sure to keep a good balance of not only meeting our current needs, but making sure that we can sustain our financial commitments moving forward,” she said.
With the passing of House Bill 3 last year, public school districts were guaranteed much needed financial relief. But budget strains caused by COVID-19 will make it difficult for the state to make good on those promises, Stone said. This will make crafting a budget that is sustainable more challenging than ever, she added.
“Because of the large amount in the state’s budget that goes to public education, it would be hard to sustain that level of commitments that have been made moving forward into the next biennium,” Stone said.
The district is expecting a minor revenue dip from $379.3 million last school year to $377.4 million in the coming year, Chief Financial Officer David Pate said. A 5% increase in property value along with a voter-approved tax rate increase in 2018 are helping keep district revenue steady, he said.
“The district is still seeing some benefit from the increase in property values related to the little-over 13 cents of tax effort that was approved by voters in the [tax ratification election],” Pate said.
A $2 million fund balance can be used for specific projects, such as construction and bond planning, Pate said. Additionally, the district expects to have $114.7 million in unassigned fund balance, which can be used to cover cash flow inconsistencies, Pate said.
Trustee Eron Linn said he was encouraged by the budget and the improvements that were made since the first budget preview April 20.
"Nobody has a crystal ball, and I know it is really difficult right now to figure out where everyone will be when we come out of this," he said "But I think what you have put together here is a sustainable budget that,even in the bad times that lie ahead, we will probably be able to keep this moving."
The board will hear another budget proposal at its May 18 meeting. A public hearing and possible adoption are scheduled for June 8. However, if the budget is not ready to be adopted on that date, the board can postpone the vote until June 15, Stone said.
The tax rate will be voted on at the board’s Sept. 14 meeting. Tax bills are scheduled to be mailed to residents Oct. 1.
