School Budget 5.8% Less Than Advertised
July 28, 2016 at 4:25 p.m.
By David [email protected]
During a special meeting Thursday, the Warsaw School Board approved signing the notice from the Indiana Department of Local Government Finance acknowledging the changes in the final budget order.[[In-content Ad]]Budget development begins in the spring and runs through summer, Chief Financial Officer Kevin Scott told the school board. It includes a public hearing and culminates in budget adoption in September. A number of assumptions are included in the budget because it is an 18-month forecast from July 2008 through December 2009.
When the county has the certified assessed valuation, the DLGF reviews all government unit budgets in the county, including schools. The DLGF sets the budget based on actual spending in the final half of the year. For 2009, that is the final half of 2008. The DLGF also takes into account cash balances and encumbered monies.
A draft of the budget is provided to the school to review, Scott said. The deadline for review of the draft is today.
Warsaw Schools' draft budget order initially reduced the corporation's total advertised budget by more than $3.8 million. Scott said WCS asked for further review, and the DLGF made corrections, changing the total budget reduction to almost $3.4 million, a difference of about $400,000.
The adjustment, according to Scott, puts $194,393 back into the general fund to help with student instruction, $190,587 back into CPF to help with building repairs and $56,196 back into transportation for bus operations.
Scott said the total 2009 advertised budget was $69,382,666. After ordered cuts, the 2009 actual budget is $65,988,203.
The ordered reduction by the DLGF will hit the capital projects fund the most, according to WCS Chief Financial Officer Kevin Scott. The advertised amount for the CPF was $11,089,435, but the budget order reduced that to $8,835,527, a cut of $2,253,908.
The reduced level to the CPF is about the same as the prior year, Scott said. To meet the reduction, WCS will have to cut out large roof projects for Eisenhower Elementary and Lakeview Middle School.
"We expected the cut from CPF," Scott said. He had planned for a larger cut if necessary. No cuts to any programs are expected, he said.
Scott said the debt service also is significantly different from what was advertised to what was approved. The debt service was reduced $392,000 from the advertised amount of $9,218,506 to $8,826,506.
The debt service was advertised high because the school corporation had not issued the remaining bonds for the elementary schools projects, Scott said. Now that Warsaw Schools knows what its bond payments will be, the debt service is actual rather than estimated as it was last summer when the 2009 budget was put together.
School Board Vice President Dan Robinson asked when the debt service for the new building projects kicks in. Scott said payments on that begin this summer. The tax rate for this year will accommodate three debt service payments for the new buildings. After this year, two debt service payments will be made per year.
The tax rate impact will be a little bit below what was discussed in previous public meetings, Scott said in a telephone interview Thursday afternoon. Part of that reason was because the building projects came below expected costs. Instead of being more than $60 million, the school projects will be closer to $40 million.
Board member Kent Adams asked during Thursday's meeting what effect the federal stimulus package will have on schools. Scott said he attended a regional Indiana Association of School Business Officials meeting recently. He said it is thought schools will receive additional money for special education and Title I. There has been some discussion about money for building programs, but, Scott said, he hasn't seen any information on construction-related money yet.
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During a special meeting Thursday, the Warsaw School Board approved signing the notice from the Indiana Department of Local Government Finance acknowledging the changes in the final budget order.[[In-content Ad]]Budget development begins in the spring and runs through summer, Chief Financial Officer Kevin Scott told the school board. It includes a public hearing and culminates in budget adoption in September. A number of assumptions are included in the budget because it is an 18-month forecast from July 2008 through December 2009.
When the county has the certified assessed valuation, the DLGF reviews all government unit budgets in the county, including schools. The DLGF sets the budget based on actual spending in the final half of the year. For 2009, that is the final half of 2008. The DLGF also takes into account cash balances and encumbered monies.
A draft of the budget is provided to the school to review, Scott said. The deadline for review of the draft is today.
Warsaw Schools' draft budget order initially reduced the corporation's total advertised budget by more than $3.8 million. Scott said WCS asked for further review, and the DLGF made corrections, changing the total budget reduction to almost $3.4 million, a difference of about $400,000.
The adjustment, according to Scott, puts $194,393 back into the general fund to help with student instruction, $190,587 back into CPF to help with building repairs and $56,196 back into transportation for bus operations.
Scott said the total 2009 advertised budget was $69,382,666. After ordered cuts, the 2009 actual budget is $65,988,203.
The ordered reduction by the DLGF will hit the capital projects fund the most, according to WCS Chief Financial Officer Kevin Scott. The advertised amount for the CPF was $11,089,435, but the budget order reduced that to $8,835,527, a cut of $2,253,908.
The reduced level to the CPF is about the same as the prior year, Scott said. To meet the reduction, WCS will have to cut out large roof projects for Eisenhower Elementary and Lakeview Middle School.
"We expected the cut from CPF," Scott said. He had planned for a larger cut if necessary. No cuts to any programs are expected, he said.
Scott said the debt service also is significantly different from what was advertised to what was approved. The debt service was reduced $392,000 from the advertised amount of $9,218,506 to $8,826,506.
The debt service was advertised high because the school corporation had not issued the remaining bonds for the elementary schools projects, Scott said. Now that Warsaw Schools knows what its bond payments will be, the debt service is actual rather than estimated as it was last summer when the 2009 budget was put together.
School Board Vice President Dan Robinson asked when the debt service for the new building projects kicks in. Scott said payments on that begin this summer. The tax rate for this year will accommodate three debt service payments for the new buildings. After this year, two debt service payments will be made per year.
The tax rate impact will be a little bit below what was discussed in previous public meetings, Scott said in a telephone interview Thursday afternoon. Part of that reason was because the building projects came below expected costs. Instead of being more than $60 million, the school projects will be closer to $40 million.
Board member Kent Adams asked during Thursday's meeting what effect the federal stimulus package will have on schools. Scott said he attended a regional Indiana Association of School Business Officials meeting recently. He said it is thought schools will receive additional money for special education and Title I. There has been some discussion about money for building programs, but, Scott said, he hasn't seen any information on construction-related money yet.
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