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The Search for Consistency
By: Jim Smith, Assistant Superintendent/CFO
Consistency.
It's a term that denotes reliability and predictability. I use the term a lot when speaking about the school system's budget. To me, consistency is found in designing and providing a program of instruction for each class of students that enters our doors in a manner that properly prepares those students with a quality, standards-based education every year. While there are years when budgets are flush with resources and those when budgets are lean, every student deserves a high quality education regardless of the economic times in which they live. Consistency.
As you know, our budgets over the past several years have been challenging, to say the least. The budget for fiscal year 2012, which begins on July 1, is a prime example of "challenging." While you read some of the highlights in last week's Communicator, you may find some of the details interesting. A detailed explanation of our financial condition and plans for the new year can be found in the executive summary provided in the budget presentation. While the summary is several pages long, many charts and graphs depicting our position are included to help "de-mystify" budget language. But, let me point out a few of the details which framed the development of the general fund budget, the primary operating fund.
- The general fund budget totals $75,624,077 in expenditures and $72,498,317 in projected revenues leaving a deficit of $3,125,760 to be covered by fund reserves
- A decline in enrollment of approximately 189 full time equivalent students leads to lower state earnings which is offset partially through the absorption of 17 teaching positions
- State imposed austerity reductions continue for the tenth consecutive year; we will receive over $7.4 million less in state revenues for FY12 than we earn under the Quality Basic Education funding formula
- Increases in the cost of health care insurance, diesel fuel, and utilities add cost to operations
- While no general pay increase was added to the budget, we are funding step increases for teachers who are paid on the state teacher salary schedule
- Local property taxes are expected to remain flat with no projected increase in millage rate or value of overall tax digest
- 6 work schedule adjustment days as a cost reduction - the same number we took last year
As noted, $3,125,760 of fund reserves is being used to balance the budget; it is not an option we can continue indefinitely. We expect to end FY12 with a fund reserve that represents approximately 7% of current year expenses, or less than one month's worth of expenses. We also rely on fund reserves to provide the cash flow needed to operate several state and federal grant programs such as Title I, Special Education (6-B), and Professional Development (II-a) from the beginning of the year until reimbursement money flows to us in September or October.
Our plan is to begin work on the FY13 budget soon after the new year starts. We will be developing ideas and options for handling any future revenue shortage should economic conditions remain as they are now. We won't be able to rely on a diminished fund reserve for very long before some painful choices will have to be addressed. Hopefully, the state budget will look better this time next year, but, in any case, I ask that you share any ideas on cost saving measures you may have with Dr. Jones or myself. Many of you have shared valuable ideas with us in the past that have helped cushion harsher budget cutting options.
As this is written, many of the test scores and other measures of student achievement are coming in. It looks like GSCS will have had a pretty good year in terms of advancing student achievement even while having fewer resources to do the job. Thanks to your hard work and dedication, a consistent educational experience is being offered our students. May we all work together to continue on that path.
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Proposed FY12 Griffin-Spalding County School System budgets totals $75.6 Million
During a board of education work session Tuesday, June 7, Assistant Superintendent and Chief Financial Officer Jim Smith presented the proposed FY12 General Fund budget. Director of Accounting Ryan McLemore highlighted details and explained the challenge of creating the FY12 budget with less revenue and more uncontrolled costs.
School board members placed the budget on first reading in order to begin the consideration phase during which the budget will be publically advertised and public hearings and workshops will be held.
The recommended budget includes these fund-level appropriations: general fund - $75,624,077; special revenue fund - $14,450,800; school nutrition fund - $5,965,284; debt service fund - $5,027,300; and, capital projects fund - $14,070,000.
Jim Smith said, "The budget is the culmination of months of work by staff attempting to define the best use of available resources in developing an effective instructional program for the children of Spalding County."
In light of decreased revenue and increased uncontrolled costs for items such as diesel fuel, property and liability insurance, and the employer's portion of health insurance for classified employees, $3,125,760 of fund reserves is being used to balance the general fund.
The budget is a balanced budget under the legal definition used in Georgia. The millage rate for 2011 tax bills is projected to remain constant at 18.8 mills. State revenues continue to fall below QBE formula earnings; the austerity adjustment for FY12 is $7,404,300; and, equalization earnings are declining while local five mill share is increasing Six work schedule adjustment days are included in the budget - five affect non-instructional days while one is a school day being cut. However, minutes are being added to each school day to equal the instructional time of a full 180 school year.
Board members received a budget notebook that included charts, explanations, and showed funding trends over the last several years.
The budget will be advertised once in the legal organ of the county and must remain on the table a minimum of 14 days prior to final adoption. Changes can be proposed to the budget at any point up to the time of final adoption. Final adoption must be completed prior to July 1 so as to have a legal appropriation in place for expenses beginning on that date.
The Board of Education set the following dates for public hearings and budget workshops that follow hearings:
- Tuesday, June 14, 2011 Public hearing 5:00 PM
- Tuesday, June 21, 2011 Public hearing 5:00 PM
- Tuesday, June 28, 2011 Public hearing 5:30 PM
- Tuesday, June 28, 2011 6:00 PM Regular board of education meeting including final adoption of budget
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Griffin Spalding County School System
PO Drawer N
Griffin, Georgia 30224 |
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