Warsaw Schools Holds Hearing On 2011 $68.66 Million Budget
July 28, 2016 at 4:25 p.m.
By David [email protected]
The total of the proposed 2011 budget is $68,663,717, which is $400,709 (0.6 percent) less than the adopted 2010 budget.
"Overall, it's still a reduction," said Chief Financial Officer Kevin Scott. "Our actual may end up further down than that."
Seven funds make up the total 2011 proposed budget. Those include general fund and preschool fund, $43,832,042; debt service fund, $9,040,560; retirement/severance debt service, $539,312; capital projects fund, $9,626,918; transportation fund, $2,907,385; bus replacement fund, $717,500; and rainy day fund, $2 million.
Scott presented the budget numbers to the school board. At the regular Sept. 20 board meeting, he will ask the board to adopt the budget. The Indiana Department of Local Government Finance will review the budget and has final authority over the budget numbers.
Every June, the state holds an informational session. During that session, Scott said, schools were told that their funding reduction for 2010 was a permanent reset. The possibility for additional cuts is uncertain, and schools should not count on that money coming back because a tax increase is off the table. Schools were told to budget cautiously.
In developing the budget, Scott said there were many considerations. There were the budget reduction actions, Warsaw's redistricting and related staff shifts, and known changes in the expected costs.
The general fund is the largest of the funds in the total budget. Tuition support makes up 88 percent of the general fund, Scott said. For each student Warsaw Schools has, it receives $5,489 from the state. Count day this year is Sept. 17, and the number of students on that date will determine how much WCS gets for the rest of the school year.
The capital projects fund primarily pays for repair and improvements to facilities. It is building specific, Scott said, so it was budgeted that way. The CPF also can cover some utility costs and technology.
For 2011, the significant projects will include a repaving project at the high school, traffic flow improvements at the high school/middle school/administration building/Washington campus, land purchase, addressing handicapped accessibility at the central office and business and human resource software.
The new buildings will consume more money than their predecessors, Scott said, because they are bigger.
For some roofing work at Eisenhower Elementary and Lakeview Middle School, he said they will see some help from the American Recovery and Reinvestment Act of 2009.
The transportation fund is a levy-capped fund. The levy growth is limited by the state, and capped at 5 percent, Scott said. Appeals can be made.
"We've been successful with appeals in the past," Scott said.
In 2009, the state mandated the bus replacement plan change from a 10-year cycle to a 12-year cycle. Warsaw Schools will replace two in 2011, but also will request to add three additional conventional buses to the fleet. The additional buses are required because of increased ridership, additional routes resulting from redistricting, additional mid-day routes, increased numbers for extracurricular trips and the need for reserve buses to cover breakdowns.
After 2011, WCS will replace an average of six buses each year.
Debt service is need-based funding. Funding is local.
If a school system goes through a referendum for a future project, Scott said he believed it was cap exempt.
"I believe, referendums, you'll see more of that," he said.
The last debt service payment for the initial high school project will be made in 2011 in the amount of $1,253,000. The total debt service WCS owes is a little more than $143 million.
School Board Vice President Dan Robinson asked Scott if the initial high school project payment will be made in one lump sum or a little each month. Scott said one lump sum.
The pension debt reflects payments for the 2002 retirement buyout. The total owed on it is more than $4.6 million, and WCS will pay more than a half million on it in 2011.
To use money in the rainy day fund, the school corporation has to request authority to spend it. It can be used to meet certain budget needs.
Overall, Scott said, he is a conservative man and the budget was developed very conservatively.
Board President Deb Wiggins praised Scott's budget and its presentation.
"This is probably the best I've ever seen. I know where everything is at. The explanations are clear and concise," she said. "... I just want to thank you."
"I concur fully," said Robinson.
Ron Yeiter, board member, said there was a letter to the editor criticizing WCS for making just a meager decrease. But, Yeiter said, WCS is getting more for less money and the letter writer missed the big picture.
Wiggins said they've decreased their budget and opened new elementary schools.
"I think we're doing a great job," she said.[[In-content Ad]]
The total of the proposed 2011 budget is $68,663,717, which is $400,709 (0.6 percent) less than the adopted 2010 budget.
"Overall, it's still a reduction," said Chief Financial Officer Kevin Scott. "Our actual may end up further down than that."
Seven funds make up the total 2011 proposed budget. Those include general fund and preschool fund, $43,832,042; debt service fund, $9,040,560; retirement/severance debt service, $539,312; capital projects fund, $9,626,918; transportation fund, $2,907,385; bus replacement fund, $717,500; and rainy day fund, $2 million.
Scott presented the budget numbers to the school board. At the regular Sept. 20 board meeting, he will ask the board to adopt the budget. The Indiana Department of Local Government Finance will review the budget and has final authority over the budget numbers.
Every June, the state holds an informational session. During that session, Scott said, schools were told that their funding reduction for 2010 was a permanent reset. The possibility for additional cuts is uncertain, and schools should not count on that money coming back because a tax increase is off the table. Schools were told to budget cautiously.
In developing the budget, Scott said there were many considerations. There were the budget reduction actions, Warsaw's redistricting and related staff shifts, and known changes in the expected costs.
The general fund is the largest of the funds in the total budget. Tuition support makes up 88 percent of the general fund, Scott said. For each student Warsaw Schools has, it receives $5,489 from the state. Count day this year is Sept. 17, and the number of students on that date will determine how much WCS gets for the rest of the school year.
The capital projects fund primarily pays for repair and improvements to facilities. It is building specific, Scott said, so it was budgeted that way. The CPF also can cover some utility costs and technology.
For 2011, the significant projects will include a repaving project at the high school, traffic flow improvements at the high school/middle school/administration building/Washington campus, land purchase, addressing handicapped accessibility at the central office and business and human resource software.
The new buildings will consume more money than their predecessors, Scott said, because they are bigger.
For some roofing work at Eisenhower Elementary and Lakeview Middle School, he said they will see some help from the American Recovery and Reinvestment Act of 2009.
The transportation fund is a levy-capped fund. The levy growth is limited by the state, and capped at 5 percent, Scott said. Appeals can be made.
"We've been successful with appeals in the past," Scott said.
In 2009, the state mandated the bus replacement plan change from a 10-year cycle to a 12-year cycle. Warsaw Schools will replace two in 2011, but also will request to add three additional conventional buses to the fleet. The additional buses are required because of increased ridership, additional routes resulting from redistricting, additional mid-day routes, increased numbers for extracurricular trips and the need for reserve buses to cover breakdowns.
After 2011, WCS will replace an average of six buses each year.
Debt service is need-based funding. Funding is local.
If a school system goes through a referendum for a future project, Scott said he believed it was cap exempt.
"I believe, referendums, you'll see more of that," he said.
The last debt service payment for the initial high school project will be made in 2011 in the amount of $1,253,000. The total debt service WCS owes is a little more than $143 million.
School Board Vice President Dan Robinson asked Scott if the initial high school project payment will be made in one lump sum or a little each month. Scott said one lump sum.
The pension debt reflects payments for the 2002 retirement buyout. The total owed on it is more than $4.6 million, and WCS will pay more than a half million on it in 2011.
To use money in the rainy day fund, the school corporation has to request authority to spend it. It can be used to meet certain budget needs.
Overall, Scott said, he is a conservative man and the budget was developed very conservatively.
Board President Deb Wiggins praised Scott's budget and its presentation.
"This is probably the best I've ever seen. I know where everything is at. The explanations are clear and concise," she said. "... I just want to thank you."
"I concur fully," said Robinson.
Ron Yeiter, board member, said there was a letter to the editor criticizing WCS for making just a meager decrease. But, Yeiter said, WCS is getting more for less money and the letter writer missed the big picture.
Wiggins said they've decreased their budget and opened new elementary schools.
"I think we're doing a great job," she said.[[In-content Ad]]
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