County school budget reflects revenue losses
A proposed general fund-operating budget for Morgan County Schools calls for bare bones spending in fiscal 2011-2012 while providing a $2 million boost for a depleted reserve fund.
The budget was presented by Chief School Financial Officer John Godwin at a public hearing on Thursday afternoon.
The school system anticipates revenues totaling $74,260,839 and expenditures totaling $72,576,465, leaving a positive balance of $1,684,383. Of total revenue, $38,092,762 is expected from the state while $21,668,500 is expected from local sources. Federal revenues are anticipated at $11,613,945.
Schools will operate with nine fewer teachers in 2011-2012, reducing the revenue requirement for the foundation program by $1,143,510. While the current student population remains virtually unchanged, the state is funding fewer teachers. This change was the result of the State Legislature raising the pupil-teacher ratio for specified grades.
The school’s system’s reserve fund balance dipped to $500,000 in 2010 but is expected to reach $730,000 at the end of fiscal 2010-2011, according to Godwin. In addition, cuts made in the proposed budget should bring the balance to $2.7 at the end of the next fiscal year. The state mandate is three percent of budget, or about $5 million.
“An increase in the state school budget looks good on paper,”Godwin stated. “But we still have an economy that’s struggling and proration is looming out there. A three percent reduction in state finds would reduce out revenue by $1 million.”
Godwin said several factors are involved in reducing the cost of school operations in 2011-2012. They include the closing of Ryan School, a reduction in teacher units and support personnel, and a reduction in capital expenditures.
Superintendent Bill Hopkins commended Godwin for doing a good job of preparing the budget and extended thanks to central office staff, department directors, school administrators, teachers, students and parents for their support of efforts to reduce spending.
“We could add $2 million to our reserve and I don’t think we have any educational services that are suffering,” Hopkins pointed out. “ I encourage board members to visit the schools. We have a lot of good things going on.”
