Warsaw Schools Looks at $73.4M Budget
July 28, 2016 at 4:25 p.m.
By David [email protected]
The 2014 budget was adopted at $71,022,013, while the proposed 2015 budget is $73,449,672.
Chief Financial Officer Kevin Scott reviewed the numbers with the school board Tuesday during its budget study session. At the regular meeting Monday, Scott will ask the board for permission to advertise the proposed 2015 budget.
The first publication of the legal notice will be in the Times-Union Aug. 26, with the second publication set for Sept. 2. A public hearing on the budget will be at noon Sept. 5, with the adoption of the budget at 7 p.m. Sept. 23.
Once the budget is advertised, it can be reduced but not increased.
WCS’s budget includes seven funds. The largest is the general fund, proposed at $50,391,212. The other funds include debt service, $8,614,667; school pension debt, $542,887; capital projects, $8,136,370; school transportation, $3,708,787; bus replacement, $755,749; and rainy day, $1.3 million.
In preparing next year’s budget, Scott said they take a look at actual experience from July to June as well as the current budget, and consider any changes for the next year they may be aware of.
The general fund is advertised even though it doesn’t receive any property tax dollars, Scott said. The state started funding it a few years ago. Student enrollment drives the state revenue projection for the district. Scott said state funding for WCS is only up $18 per student.
The general fund includes payroll for most of WCS’s employees. Scott said the volume of staffing changes was not very great this year.
As for utilities paid out of general fund, Scott noted that after a reduction for gas heat in 2014 of $40,365, WCS is adding back 2.7 percent to be conservative. That amounts to $17,000. The gas purchasing co-op that WCS is part of has locked in roughly 85 percent of its projected gas need for the 2014-15 and 2015-16 winters at current price levels.
Electric is flat, with current cost running under budget, and water and sewage based on usage is down $1,750. In addition to the $1.5 million for utilities paid out of the general fund, some utility costs will come out of the capital projects fund.
Speaking of CPF, Scott said the technology budget across all of Warsaw’s school buildings is $3,727,123. While technology certainly helps educate students, Scott said costs are squeezing dollars from buildings in other areas such as carpeting. He said it is an area of concern and WCS needs to think of where it’s going.
For the debt service fund, Scott said there is no new debt for the 2015 budget.
Under the transportation operating fund, the Affordable Care Act is having an impact. Scott said WCS is budgeting for a $350,000 increase in healthcare costs for transportation employees for 2015, which accounts for all of the growth of the fund that will be advertised. While Transportation Director Cheryl Cook and her team have done well with costs, Scott said “the big thing coming for us is the Affordable Care Act.”
Bus routes are run twice and there are midday routes, which put many drivers over the 30-hour workweek, making them eligible for insurance.
To help stem the additional expense, Scott said he will file an appeal for an additional $240,000 for the transportation fund.
“It’s a big number for us,” Scott said.
He also noted the general fund has $300,000 more in it for 2015 because of staff who will qualify because of the ACA.
The bus replacement fund is on a 12-year cycle. Two years ago, the state put schools on the replacement cycle and limited the revenue for the fund.
For 2015, Scott said they want to replace six 66-passenger conventional buses and one special needs lift bus. The cost for the seven buses will be above the funding cap allowed. He said they will need to have discussions about whether or not to fund the shortfall from another fund or delay the purchase. Delaying the purchase lengthens the replacement cycle and further impacts the repair costs to maintain older buses, Scott said. The lift bus costs more than the conventional bus.
Estimated cost for the seven buses is $755,749.
Dan Metzger, board member, said, “The problem is that bus costs have doubled in the last 10 years but funding hasn’t.”
The 2015 budget will be reviewed and approved by the Indiana Department of Local Government Finance. Scott said in previous years, that has happened for WCS in November.[[In-content Ad]]
The 2014 budget was adopted at $71,022,013, while the proposed 2015 budget is $73,449,672.
Chief Financial Officer Kevin Scott reviewed the numbers with the school board Tuesday during its budget study session. At the regular meeting Monday, Scott will ask the board for permission to advertise the proposed 2015 budget.
The first publication of the legal notice will be in the Times-Union Aug. 26, with the second publication set for Sept. 2. A public hearing on the budget will be at noon Sept. 5, with the adoption of the budget at 7 p.m. Sept. 23.
Once the budget is advertised, it can be reduced but not increased.
WCS’s budget includes seven funds. The largest is the general fund, proposed at $50,391,212. The other funds include debt service, $8,614,667; school pension debt, $542,887; capital projects, $8,136,370; school transportation, $3,708,787; bus replacement, $755,749; and rainy day, $1.3 million.
In preparing next year’s budget, Scott said they take a look at actual experience from July to June as well as the current budget, and consider any changes for the next year they may be aware of.
The general fund is advertised even though it doesn’t receive any property tax dollars, Scott said. The state started funding it a few years ago. Student enrollment drives the state revenue projection for the district. Scott said state funding for WCS is only up $18 per student.
The general fund includes payroll for most of WCS’s employees. Scott said the volume of staffing changes was not very great this year.
As for utilities paid out of general fund, Scott noted that after a reduction for gas heat in 2014 of $40,365, WCS is adding back 2.7 percent to be conservative. That amounts to $17,000. The gas purchasing co-op that WCS is part of has locked in roughly 85 percent of its projected gas need for the 2014-15 and 2015-16 winters at current price levels.
Electric is flat, with current cost running under budget, and water and sewage based on usage is down $1,750. In addition to the $1.5 million for utilities paid out of the general fund, some utility costs will come out of the capital projects fund.
Speaking of CPF, Scott said the technology budget across all of Warsaw’s school buildings is $3,727,123. While technology certainly helps educate students, Scott said costs are squeezing dollars from buildings in other areas such as carpeting. He said it is an area of concern and WCS needs to think of where it’s going.
For the debt service fund, Scott said there is no new debt for the 2015 budget.
Under the transportation operating fund, the Affordable Care Act is having an impact. Scott said WCS is budgeting for a $350,000 increase in healthcare costs for transportation employees for 2015, which accounts for all of the growth of the fund that will be advertised. While Transportation Director Cheryl Cook and her team have done well with costs, Scott said “the big thing coming for us is the Affordable Care Act.”
Bus routes are run twice and there are midday routes, which put many drivers over the 30-hour workweek, making them eligible for insurance.
To help stem the additional expense, Scott said he will file an appeal for an additional $240,000 for the transportation fund.
“It’s a big number for us,” Scott said.
He also noted the general fund has $300,000 more in it for 2015 because of staff who will qualify because of the ACA.
The bus replacement fund is on a 12-year cycle. Two years ago, the state put schools on the replacement cycle and limited the revenue for the fund.
For 2015, Scott said they want to replace six 66-passenger conventional buses and one special needs lift bus. The cost for the seven buses will be above the funding cap allowed. He said they will need to have discussions about whether or not to fund the shortfall from another fund or delay the purchase. Delaying the purchase lengthens the replacement cycle and further impacts the repair costs to maintain older buses, Scott said. The lift bus costs more than the conventional bus.
Estimated cost for the seven buses is $755,749.
Dan Metzger, board member, said, “The problem is that bus costs have doubled in the last 10 years but funding hasn’t.”
The 2015 budget will be reviewed and approved by the Indiana Department of Local Government Finance. Scott said in previous years, that has happened for WCS in November.[[In-content Ad]]
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