Warsaw Schools Reviews 2009 Budget
July 28, 2016 at 4:25 p.m.
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Chief Financial Officer Kevin Scott went over the 2009 budget and how new state law will impact school finances.
The proposed 2009 budget is $69,382,666, and the 2008 budget is $59,946,043. That's a change of $9,436,623, or 15.7 percent.
Scott said when he prepares the budget, he looks at what is happening in the current budget, the prior year budget, known changes in staffing and costs and other information available.[[In-content Ad]]The proposed general fund is the largest fund in the 2009 budget at $44,242,512. It is driven by enrollment and also a mathematical formula used by the state. In 2009, the state is fully taking over all school corporations' general funds. In addition, 2009 will be the last year for schools' budgets to be from January through December. In 2010, the budget cycle will change to June through July. Scott said there are still questions on the budget cycle change.
The Capital Projects Fund will increase by $2,211,645 to $11,089,435 in 2009. The increase includes $1.5 million for roof projects; $365,000 for Guaranteed Energy Savings plan payment; $245,000 for video security district wide; and $296,000 for computer equipment.
The CPF has a tax rate cap. If the assessed valuation goes down, and the school corporation wants to generate the same amount of money, Scott said, the tax rate has to go up. With a rate cap, and if no adjustments are made by the Department of Local Government Finance, if the assessed valuation goes down, the school corporation could lose an estimated $1.2 million in CPF rather than a $2.2 million increase.
That loss is big for Warsaw Schools, Scott said, but could be bigger for school corporations in Fort Wayne and Indianapolis.
"While we're asking for more, we're well aware we may have to make cuts," said Scott.
Other funds in the 2009 proposed budget include $9,218,506 for debt service; $542,379 for retirement debt; $3,146,167 for transportation; $390,000 for bus replacement; $353,667 for preschool; and $400,000 for the Rainy Day Fund.
The state legislature changed the bus replacement plan from a 10-year plan to a 12-year cycle. Scott said that means schools will keep buses longer, and may look at buying buses with larger seating capacity. After 10 years, a Warsaw bus has about 130,000 miles on it.
The debt service includes more than $4 million for payment on the elementary schools building project. The project includes building new Madison and Leesburg schools, and renovating and improving Claypool and Jefferson schools.
The board is scheduled to adopt the proposed 2009 budget at its Sept. 15 regular meeting.
The board also accepted the life estate settlement with Dale Minson for $3,000. The money will be earmarked for the 1-to-1 laptop initiative. The property is in Winona Lake.
Initially, Minson offered $1,500 for WCS's future interest in the property. The school board rejected that offer and offered to sale it to Minson for $4,000. Minson's attorney made a counter offer of $3,000.
Minson is about 43. Had a settlement not been made, Warsaw Schools would have to wait until Minson died to get a hold of their interest in the estate left by Minson's mother.
Chief Financial Officer Kevin Scott went over the 2009 budget and how new state law will impact school finances.
The proposed 2009 budget is $69,382,666, and the 2008 budget is $59,946,043. That's a change of $9,436,623, or 15.7 percent.
Scott said when he prepares the budget, he looks at what is happening in the current budget, the prior year budget, known changes in staffing and costs and other information available.[[In-content Ad]]The proposed general fund is the largest fund in the 2009 budget at $44,242,512. It is driven by enrollment and also a mathematical formula used by the state. In 2009, the state is fully taking over all school corporations' general funds. In addition, 2009 will be the last year for schools' budgets to be from January through December. In 2010, the budget cycle will change to June through July. Scott said there are still questions on the budget cycle change.
The Capital Projects Fund will increase by $2,211,645 to $11,089,435 in 2009. The increase includes $1.5 million for roof projects; $365,000 for Guaranteed Energy Savings plan payment; $245,000 for video security district wide; and $296,000 for computer equipment.
The CPF has a tax rate cap. If the assessed valuation goes down, and the school corporation wants to generate the same amount of money, Scott said, the tax rate has to go up. With a rate cap, and if no adjustments are made by the Department of Local Government Finance, if the assessed valuation goes down, the school corporation could lose an estimated $1.2 million in CPF rather than a $2.2 million increase.
That loss is big for Warsaw Schools, Scott said, but could be bigger for school corporations in Fort Wayne and Indianapolis.
"While we're asking for more, we're well aware we may have to make cuts," said Scott.
Other funds in the 2009 proposed budget include $9,218,506 for debt service; $542,379 for retirement debt; $3,146,167 for transportation; $390,000 for bus replacement; $353,667 for preschool; and $400,000 for the Rainy Day Fund.
The state legislature changed the bus replacement plan from a 10-year plan to a 12-year cycle. Scott said that means schools will keep buses longer, and may look at buying buses with larger seating capacity. After 10 years, a Warsaw bus has about 130,000 miles on it.
The debt service includes more than $4 million for payment on the elementary schools building project. The project includes building new Madison and Leesburg schools, and renovating and improving Claypool and Jefferson schools.
The board is scheduled to adopt the proposed 2009 budget at its Sept. 15 regular meeting.
The board also accepted the life estate settlement with Dale Minson for $3,000. The money will be earmarked for the 1-to-1 laptop initiative. The property is in Winona Lake.
Initially, Minson offered $1,500 for WCS's future interest in the property. The school board rejected that offer and offered to sale it to Minson for $4,000. Minson's attorney made a counter offer of $3,000.
Minson is about 43. Had a settlement not been made, Warsaw Schools would have to wait until Minson died to get a hold of their interest in the estate left by Minson's mother.
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