Attached you will find the proposed budgets for the General Purpose School and Central Cafeteria Funds for the 2012 – 2013 Fiscal Year. These budgets were prepared to further School Board goals, the District’s mission, and our District’s beliefs. In preparing the FY13 budgets, we were confronted by a continued slowed economy, as well as declining enrollments, while revenues from local, state, and federal governments remained stagnant at best. 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 (6) instructional positions, two (2) bus driver positions, and one and one-half (1.5) bookkeeping positions were eliminated. I anticipate that the County Commission will act on the budgets at its August, 2012 meeting. Particular items of interest concerning the FY 2013 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.
- 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 ending fund balance at June 30, 2013 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, although there is one (1) position not yet filled, diesel fuel and gasoline are budgeted at 110% of our latest quote prices, and utilities are budgeted with a six and three-quarters percent (6.75%) increase over the prior year.
- Page 106 lists our capital outlay projects for the year.
- $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 – 5th year of upgrades.
- The Central Cafeteria Fund is in sound financial condition and only minor capital expenditures are anticipated.
- The charging of indirect costs to the Central Cafeteria Fund, with the related transfer back, is to prevent increasing lunch prices as per a new USDA regulation. These funds are considered to be paid lunch equity (a source of local revenue not derived from lunch charges).