Warsaw Mulls $69M Budget
July 28, 2016 at 4:25 p.m.
By David [email protected]
The total appropriations for the proposed 2010 budget are $69,064,426. The Warsaw School Board will vote on approving the budget at its 7 p.m. Sept. 21 meeting.
When budget development begins in May, Scott said his office takes a snapshot of all the staff in the Warsaw district as a starting point. He also looks at the rolling 12-month actual, the prior year's budget and known changes in expected costs and staffing. He has discussions with building-level administrators, and has a work session with the school board.[[In-content Ad]]"All those things fold into a new year's budget," said Scott.
The budget is made up of seven funds, including the general and preschool fund, debt service, retirement/severance, capital projects, transportation, bus replacement and rainy day fund.
The state took over the general fund this year. They also rolled the preschool fund into the general fund. The total of the proposed general fund for 2010 is $46,938,635.
To put the general fund together, various assumptions were made, including the reopening of an expanded Claypool Elementary School. Claypool had been closed since 2004.
Scott said the construction of Claypool is progressing very well. "They expect to be ahead of schedule, so we can expect to be in there for the 2010-11 school year," Scott said.
An increase to the corporation's medical plan is expected. Scott said that's been common these last few years and it is a "very expensive item."
Along with wages going up, there could be a 30 percent increase in electric costs if the cap and trade program is approved by the federal government, Scott said. He was told to expect that by an REMC representative. Other items on the rise include the state retirement plan rates and substitute teacher costs.
Board member Kent Adams asked Scott to expand on the rise in substitute teacher costs. Scott said two years ago, costs were up significantly. The following year they were flat. This year, they were up significantly again. Some analysis was done, and it was determined costs could be up because of increased sick days and development days.
In the general fund, total pay and benefits across all types of employees remains above 90 percent of the budget. Scott says increment pay increases every year because teachers gain experience, but the state legislature doesn't take that into consideration.
The state began fully funding the general fund as of Jan. 1. "That has certainly helped our cash flow," Scott said. "That has smoothed it out."
The national economy certainly has had an impact on the state's two-year budget, which affected all schools in Indiana, Scott said. The 2010 revenue projection is unclear, and the 2011 revenue projection is nearly flat.
Enrollment plays a crucial role in how much money WCS receives, Scott said. The state gives schools $5,445 per student. Enrollment count day for schools is Sept. 18 this year.
Another factor is the complexity index which helps determine how much money schools receive. While it used to be based on six items, it now just comes down to one thing - free and reduced lunches, Scott said. Warsaw Schools' rate of students in the lunch program is 48 percent.
Capital projects fund for 2010 is proposed at $8,643,099. Of that amount, about $1.2 million goes toward paying utilities. However, the ability to pay utilities was capped at the 2007 level. Any increase over that has to be picked up by the general fund, Scott said.
For transportation, the 2010 proposed budget is $2,785,240. Growth is limited to inflation guidance set by the state and is capped at 5 percent.
Ridership on school buses is up. "There's so many children at Harrison, we're driving double routes with the same bus," said Scott.
Fuel prices last year played a role in the budget. Fuel prices went from about $2.50 to more than $4. If the economy improves, Scott said, gas prices could become an issue again once fuel futures investors get involved.
The bus replacement cycle changed from a 10-year cycle to a 12-year cycle in 2009. The bus replacement fund proposed 2010 budget is $546,000. WCS will replace three buses in 2010 and will request to add one conventional bus to the fleet because of increased ridership.
The total proposed debt service for 2010 is $9,207,554. Debt service includes unreimbursed textbook expenses, temporary loan interest and project bonds repayments.
The main high school was built in the late 1980s. That will be paid off in 2011. The additions to the high school, including the Performing Arts Center, will be paid off in 2024. Bonds for the new and expanded elementary schools projects will be paid off in 2031 and 2027. The Qualified School Construction Bond for roof work at Eisenhower Elementary and Lakeview Middle School will be paid off in 2021. When all those are paid off, they will have totaled more than $151 million from 2010 to 2031.
Scott said the pension bond pays off in 2019. For 2010, the retirement/severance fund totals $543,898.
The last fund is the rainy day fund. WCS is advertising for $400,000 in the fund for 2010. Scott said the total amount in the fund the corporation has is $2.4 million. Money in the rainy day fund can only be transferred from other funds with tax rates. Since the state took over the general fund, rainy day fund money can't come from there.
Scott reminded the board the budget is set by the Department of Local Government Finance. Notification normally comes in February, and the DLGF sets the tax rates.
The advertised 2009 budget was $69,382,666. The proposed 2010 budget is $69,064,426, a decrease of 0.5 percent.
The general fund is up for 2010 by 2.7 percent because of Claypool Elementary reopening. However, Scott said, the general fund forecast is not good and the school corporation could be dealing with budget decreases in 2011 and after.
Scott said the budget was developed conservatively, and is reviewed monthly by the central administration office and the WCS Board of Finance.
In another matter, the school board approved to advertise the public hearings for the Qualified School Construction Bond.
The bond totals $1,995,000 and will pay for the roof work at Eisenhower Elementary and Lakeview Middle School. The hearings will be held within the school board meeting Sept. 21. The advertisements will run Sept. 11 and Sept. 18.
The QSCB is part of the American Recovery and Reinvestment Act.
WCS applied for two bonds of less than $2 million each, but only was approved for one. Scott said there may be a chance in 2010 to apply for more money for the other project.
The total appropriations for the proposed 2010 budget are $69,064,426. The Warsaw School Board will vote on approving the budget at its 7 p.m. Sept. 21 meeting.
When budget development begins in May, Scott said his office takes a snapshot of all the staff in the Warsaw district as a starting point. He also looks at the rolling 12-month actual, the prior year's budget and known changes in expected costs and staffing. He has discussions with building-level administrators, and has a work session with the school board.[[In-content Ad]]"All those things fold into a new year's budget," said Scott.
The budget is made up of seven funds, including the general and preschool fund, debt service, retirement/severance, capital projects, transportation, bus replacement and rainy day fund.
The state took over the general fund this year. They also rolled the preschool fund into the general fund. The total of the proposed general fund for 2010 is $46,938,635.
To put the general fund together, various assumptions were made, including the reopening of an expanded Claypool Elementary School. Claypool had been closed since 2004.
Scott said the construction of Claypool is progressing very well. "They expect to be ahead of schedule, so we can expect to be in there for the 2010-11 school year," Scott said.
An increase to the corporation's medical plan is expected. Scott said that's been common these last few years and it is a "very expensive item."
Along with wages going up, there could be a 30 percent increase in electric costs if the cap and trade program is approved by the federal government, Scott said. He was told to expect that by an REMC representative. Other items on the rise include the state retirement plan rates and substitute teacher costs.
Board member Kent Adams asked Scott to expand on the rise in substitute teacher costs. Scott said two years ago, costs were up significantly. The following year they were flat. This year, they were up significantly again. Some analysis was done, and it was determined costs could be up because of increased sick days and development days.
In the general fund, total pay and benefits across all types of employees remains above 90 percent of the budget. Scott says increment pay increases every year because teachers gain experience, but the state legislature doesn't take that into consideration.
The state began fully funding the general fund as of Jan. 1. "That has certainly helped our cash flow," Scott said. "That has smoothed it out."
The national economy certainly has had an impact on the state's two-year budget, which affected all schools in Indiana, Scott said. The 2010 revenue projection is unclear, and the 2011 revenue projection is nearly flat.
Enrollment plays a crucial role in how much money WCS receives, Scott said. The state gives schools $5,445 per student. Enrollment count day for schools is Sept. 18 this year.
Another factor is the complexity index which helps determine how much money schools receive. While it used to be based on six items, it now just comes down to one thing - free and reduced lunches, Scott said. Warsaw Schools' rate of students in the lunch program is 48 percent.
Capital projects fund for 2010 is proposed at $8,643,099. Of that amount, about $1.2 million goes toward paying utilities. However, the ability to pay utilities was capped at the 2007 level. Any increase over that has to be picked up by the general fund, Scott said.
For transportation, the 2010 proposed budget is $2,785,240. Growth is limited to inflation guidance set by the state and is capped at 5 percent.
Ridership on school buses is up. "There's so many children at Harrison, we're driving double routes with the same bus," said Scott.
Fuel prices last year played a role in the budget. Fuel prices went from about $2.50 to more than $4. If the economy improves, Scott said, gas prices could become an issue again once fuel futures investors get involved.
The bus replacement cycle changed from a 10-year cycle to a 12-year cycle in 2009. The bus replacement fund proposed 2010 budget is $546,000. WCS will replace three buses in 2010 and will request to add one conventional bus to the fleet because of increased ridership.
The total proposed debt service for 2010 is $9,207,554. Debt service includes unreimbursed textbook expenses, temporary loan interest and project bonds repayments.
The main high school was built in the late 1980s. That will be paid off in 2011. The additions to the high school, including the Performing Arts Center, will be paid off in 2024. Bonds for the new and expanded elementary schools projects will be paid off in 2031 and 2027. The Qualified School Construction Bond for roof work at Eisenhower Elementary and Lakeview Middle School will be paid off in 2021. When all those are paid off, they will have totaled more than $151 million from 2010 to 2031.
Scott said the pension bond pays off in 2019. For 2010, the retirement/severance fund totals $543,898.
The last fund is the rainy day fund. WCS is advertising for $400,000 in the fund for 2010. Scott said the total amount in the fund the corporation has is $2.4 million. Money in the rainy day fund can only be transferred from other funds with tax rates. Since the state took over the general fund, rainy day fund money can't come from there.
Scott reminded the board the budget is set by the Department of Local Government Finance. Notification normally comes in February, and the DLGF sets the tax rates.
The advertised 2009 budget was $69,382,666. The proposed 2010 budget is $69,064,426, a decrease of 0.5 percent.
The general fund is up for 2010 by 2.7 percent because of Claypool Elementary reopening. However, Scott said, the general fund forecast is not good and the school corporation could be dealing with budget decreases in 2011 and after.
Scott said the budget was developed conservatively, and is reviewed monthly by the central administration office and the WCS Board of Finance.
In another matter, the school board approved to advertise the public hearings for the Qualified School Construction Bond.
The bond totals $1,995,000 and will pay for the roof work at Eisenhower Elementary and Lakeview Middle School. The hearings will be held within the school board meeting Sept. 21. The advertisements will run Sept. 11 and Sept. 18.
The QSCB is part of the American Recovery and Reinvestment Act.
WCS applied for two bonds of less than $2 million each, but only was approved for one. Scott said there may be a chance in 2010 to apply for more money for the other project.
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