FINANCE OFFICER KATHY MATTHEWS PRESENTED THE PROPOSED BUDGET TO THE THOMASTON-UPSON BOARD OF EDUCATION MAY 26.

General Fund Budget Presentation

May 26, 2015

We are proposing a $33.3 million general fund budget for the 2015-2016 school year. This budget reflects an increase of $400 thousand dollars from the FY15 budget. Revenues are increasing $52 thousand dollars. We are proposing to go into the fund balance $1.6 million dollars. This budget reflects a 170 day instructional calendar for students.

The following assumptions were included in the proposed budget:

Revenue assumptions include a decrease in QBE funding of $1,800 dollars which includes an austerity reduction of $1.2 million dollars for our school district. While the Governor’s office did increase funding for education and we did see a decrease in austerity of $832 thousand dollars, our school district lost $519 thousand dollars in equalization funding and another $230 thousand in FTE money. Property tax revenue is budgeted at $8.8 million dollars at a mill rate of 15.38 mills. The value of 1 mill will generate approximately $588 thousand dollars. We are still expecting the tax commissioners’ office to collect 100% of the taxes billed based on historical trends.

The employer portion of the TRS rate will be increasing to 14.28%, the health insurance employer cost for certified employees will remain the same at $11,340 annually for certified employees. We are uncertain about the rate for support personnel. We budgeted an increase of $150 per month for an annual rate of $8,954 annually, however we received word in early May that the rate increase will not take effect until January, 2016. At this time, we are unsure if the rate increase will remain at $150 per month for the remaining 6 months or if the rate increase will be more. By leaving the amount in the budget for the full year, we are hoping the impact of any increases will not be more than what is budgeted.

The remaining budget gap will be covered by using reserves. I am projecting ending the fiscal year with a fund balance of $5.4 million.

Where will the 2016 general fund revenues come from?

Our revenues come from two main sources. QBE and tax revenues. QBE revenues of $21.6 million account for 68% of the revenue while local tax revenue of $8.8 million account for 28% and the remaining $1.3 million or 4 % comes from other state and local sources for a grand total of $31.7 million in revenues.

How will the proposed $33.3 million be spent?

Instruction $22.0 million or 66%

Pupil Services $1.1 million or 3%

Improvement of Instructional Services $511 thousand or 2%

Educational Media $537 thousand or 2%

General Administration $707 thousand or 2%

School Administration $2.4 million or 7%

Business Support Services $244 thousand or 1%

Maintenance and Operations $2.9 million or 9%

Student Transportation Services $2.3 million or 7%

Central Support Services $166 thousand or 1%

Other Support Services $129 thousand less than 1%

Other Uses $110 thousand less than 1%

Ninety percent of the budget or $29.4 million is for salaries and benefits. There are 261 budgeted teaching positions. While it may appear we are increasing salaries, this budget reflects 3 less teaching positions. Those positions previously paid with the GEAR have been included in this budget. Also, for the other positions added, we are looking at the Title grants to see what positions can be shifted from the general fund budget to Title. The remaining 10% or $3.9 million is other operational expenses. $1.6 million of the $3.9 million is used for fuel to transport our students and utilities for the facilities.

The detailed budget by function has been provided for your review.

Are there any questions on the proposed tentative budget?