Baldwin County School System. FY 2017 Proposed Budget First Public Hearing John Wilson, CFO August 23, 2016

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1 Baldwin County School System FY 2017 Proposed Budget First Public Hearing John Wilson, CFO August 23,

2 FY 2017 Budget Fun Facts Line by line FY 2017 budget is1,390 pages long. If printed out it would be over 5 inches tall and would weigh over 12 lbs. FY 2017 budget is comprised of 71 Different Sources of State, Federal, and Local Funds. 61 out of 71(85%) of fund sources are earmarked funds and are restricted to be used for designated purposes. 2

3 FY 2017 Interesting Facts We are the largest employer in Baldwin County with 3,693 employees. Second is Wal-Mart with around1,600 employees. We are the largest food provider in Baldwin County. During the school year we served 3,175,035 ½ pints of milk to children. BCBE school buses drive approximately 3.4 million miles per year transporting students. That s equivalent to140 trips around the Earth! 3

4 FY 2017 Budget Summary 4

5 Governmental Fund Types General Fund This fund type accounts for all financial resources of the school system except those required to be accounted for in another fund. The primary operating functions of the school system are performed in the general fund. Special Revenue This fund type accounts for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes other than state funds. Debt Service - This fund type accounts for the accumulation of resources for the payment of general long-term debt, both principal and interest. Capital Projects - This fund type accounts for financial resources used to acquire or construct major capital facilities other than those of proprietary and trust fund. Fiduciary Expendable Trust Fund - This fund type accounts for financial assets held in trust for some specified purpose where the trust fund is designed to provide stewardship over the expendable asset. Categories and Definitions are set by the State Department of Education in the State Accounting Manual. 5

6 Total Budgeted Revenues FY Amended 2016 Variance REVENUES STATE REVENUES 155,957, ,368,876 11,588,534 FEDERAL REVENUES* 24,627,314 24,445, ,700 LOCAL REVENUES* 158,585, ,321,159 9,264,344 OTHER REVENUES 1,056, , ,700 TOTAL REVENUES 340,227, ,955,908 21,271,278 * Certain Federal Funding Grants are currently in the application process and will be adjusted during the budget amendment if awarded. * Local revenue totals include general fund tax revenue as well as food service income and local school revenue reported at each individual school location 6

7 Total Budgeted Revenues FY

8 State Revenue REVENUES: Variance State Revenues: Foundation Program 132,828, ,747,709 10,080,629 SDE Appropriations 2,430,670 2,681,641 (250,971) Transportation 12,252,213 11,438, ,147 At Risk 733, ,401 98,260 Preschool 71,990 72,959 (969) OSR Pre-Kindergarten Programs 1,098,000 1,098,000 0 Capital Outlay 5,939,758 5,695, ,658 Other State Revenues (Alabama Ahead Act) 602, ,780 Total 155,957, ,368,876 11,588,534 8

9 FY 2017 State Foundation Program State Department of Education FY 2017 State Education Foundation Allocation Report 002 Baldwin County FY2017 FY2016 Change System ADM 30, , Foundation Program Units Teachers 1, , Principals Assistant Principals Counselors Librarians Voc Ed Directors Voc Ed Counselors Total Units 1, , ADM(Average Daily Membership): represents the total, average daily enrollment during the first twenty days after Labor Day of the previous school year. This total does not include Pre-K students. See supplemental sheet for a breakdown of each school 9

10 FY 2017 State Foundation Program Foundation Program (State and Local Funds) Salaries 95,580,075 89,767,271 5,812,804 Fringe Benefits 38,191,505 36,174,776 2,016,729 Other Current Expense ($17,021/unit) 32,753,345 ($16,281/unit) 30,759,356 1,993,989 Classroom Instructional Support Teacher Materials and Supplies ($405/unit) 780,195 ($373/unit) 706,185 74,010 Technology ($169/unit) 325,864 $64/unit 120, ,356 Library Enhancement ($21/unit) 40,913 ($21/unit) 40, Professional Development ($64/unit) 122,741 ($64/unit) 120,508 2,233 Common Purchase ($0/unit) ($0/unit) - - Textbooks ($54/ADM) 1,640,010 $53/ADM 1,583,272 56,738 Total Foundation Program 169,434, ,272,041 10,162,607 State Foundation Allocation BEFORE 10 mill match 10

11 FY 2017 State Equity Funding We only get State Funding for 75% of what we are required to spend per the Foundation Program Law Equity Funding 10 mill match FY 2017 State Foundation Earned: $169.4 million (10 mill : $ 36.6 million) Received: $132.8 million

12 How Does The State Calculate the 10 Mill Match? SUPPLEMENTAL REPORT II 3 Mill Regular District Tax Assessed in 2014, Collected in FY 2015 is used to figure FY Mill Match A. LOCAL FUNDS EQUIVALENT TO 10 MILLS Act , Section of Code of Alabama requires that local support for schools must be funded at an amount equivalent to 10 mills of ad valorem tax. In order to review the condition of local funding, the following outline should be used. Data from General Purpose Financial Statement must be used in completing this section. 1. Amount of Regular District Ad Valorem Tax (code 6210) $ 10,981, Number of Mills of Regular District Ad Valorem Tax Value of 1 Mill (Divide Item 1 by item 2) $ 3,660, Value of 10 Mills (Item 3 times 10) $ 36,606,

13 FY 2017 Other State Funding Funds 17 Nurses for our 45 schools. Current Units represents funding for growing systems since State enrollment numbers are always a year behind. Continues to be underfunded or not funded at all. Currently earmarked for Charter Schools Much needed increase Timing issue in regards to the number of buses over 10 years old Majority deducted to fund State Bond Issues

14 s Still Below 2008 in State Funding per Student ADM (Average Daily Membership): represents the total, average daily enrollment during the first twenty days after Labor Day of the previous school year. This total does not include Pre-K students. State Funding: includes the Foundation Program, School Nurse Program, ARI, Transportation, Capital Allocation, State At Risk and Career Tech

15 Federal Revenue REVENUES: Variance Federal Revenues: Individuals with Disabilities Act 6,305, ,688, (383,343.60) Vocational Education 337, , (3,944.00) Title I-Part A 6,525, ,112, , Title I-Neg. and Delinquent 132, , , Title II-Part A-Teacher & Princ. Trng. 822, , (19,236.00) Title III-English Language Acquisition 155, , (19,401.00) Title IV-Part B-21st Century Centers 775, ,075, (300,000.00) USDA - Food & Nutrition 9,274, ,805, , Department of Defense 239, , Other Federal Revenue 60, , (52.00) Total 24,627, ,445, , Carryover federal funds (if eligible) will be included in the January Budget Amendment. 15

16 Special Education Cost State Foundation Funded Expenditures for Special Services- $21,775,323 Federal Funded Special Services Expenditures (IDEA-Part B)- $6,305,269 Local Funded Expenditures for Special Services- $5,407,036 FY 2017 Budgeted Expenditures for Special Education: $33,487,628 Special Ed Staff of 627 Employees Covering 4,263 special needs students (Federal Law requires the school system to provide services for students ages 3 21). 16

17 10 Year Special Education Student Count 17

18 Special Ed Growth Compared to ADM Special Education Increase ADM (including Pre-K) % of Special Ed to Total Growth Student Count Inc/Dec % Student Count Inc/Dec % % FY , % 26, % 12% FY ,770 (198) -5.0% 26, % 0% FY ,713 (57) -1.5% 27, % 0% FY , % 28, % 12% FY , % 28, % 10% FY ,727 (113) -2.9% 28, % 0% FY ,720 (7) -0.2% 29, % 0% FY , % 30, % 20% FY , % 30, % 50% FY , % 31, % 47% 18

19 Title I Schools A Title I school is determined by a school with over 40% of the students that qualify for Federal mandated free and reduced lunches. 46.9% of total student population qualifies for free and reduced meals representing over 14,165 students. 22 Elementary Schools School Free and Reduced % School Free and Reduced % Pine Grove Elementary 86.3% Silverhill Elementary 61.2% Foley Elementary 80.0% Perdido Elementary 59.1% Foley Intermediate 76.3% Delta Elementary 58.3% Swift Elementary 74.5% Elsanor Elementary 56.2% Summerdale Elementary 74.0% Rosinton Elementary 55.8% Magnolia Elementary 72.2% Daphne Elementary 55.7% Bay Minette Elementary Elberta Intermediate/Middle 54.9% 71.6% Robertsdale Elementary 69.2% W. J. Carroll 50.3% Loxley Elementary 68.0% J.Larry Newton 46.7% Bay Minette Intermediate 64.6% Gulf Shores Elementary 46.6% Elberta Elementary 62.4% Stapleton Elementary 44.7% 19

20 Title I Schools For the second year, Title I Funds are spread to qualifying Middle Schools. School Free and Reduced % Foley Middle 67.1% Bay Minette Middle School 64.8% Central Baldwin Middle 60.8% 20

21 Child Nutrition Program Summary Serves approximately 4 million meals a year. 220 CNP employees countywide Revenue USDA $9,274,765 Estimated Sales: $3,958,974 Transfer from General Fund $4,401,209 Other (State Rebates) $458,233 Total Revenue: $18,093,181 21

22 General Fund Local Revenue GENERAL FUND ONLY Proposed Amended Variance Local Revenues: Ad Valorem Taxes (Includes Probate) 50,255,097 47,602,244 2,652,852 Business Privilege Tax 1,100,000 1,090,000 10,000 County Sales and Use Tax 71,393,787 68,132,475 3,261,312 Other County Revenue 380, ,000 20,000 Bank Interest Revenue 75,000 50,000 25,000 Other Revenue (After School and Reimbursments) 2,774,811 2,103, ,299 Total Local Revenue 125,978, ,338,231 6,640,463 Less State Required 10 Mill Match (36,606,310) (36,992,420) 386,110 Balance for Local Use 89,372,385 82,345,811 7,026,573 22

23 Ad Valorem Budget Ad Valorem FY 2017 FY 2016 Variance Property Taxes 46,094, ,677,766 2,416,244 Probate Taxes 4,161, ,924, ,608 50,255,097 47,602,244 2,652,853 FY 2017 Ad Valorem Budget Property Taxes 46,094,010 Probate Taxes 4,161,087 50,255, mill Match* (36,606,310) Remaining Discretionary Funding 13,648,787 * 10 mill match based on the value of 10 mills collected during the time period. 10 mills is reduced from funding sent to Baldwin County and placed into a State funding pool distributed to other systems. 23

24 FY 2008 Ad Valorem Revenue Highmark 24

25 Even with the population growth, Ad Valorem is still $3.9 million less than 2008! 25

26 After 10 years, the 1% sales tax revenue is finally expected to exceed Pre- Recession Levels. 26

27 FY 2017 Expenditures 27

28 2017 Total Expenditures by Functions (Includes All Funds and Fund Sources) $22 million of Capital Projects Budgeted in 2016 are Rolling Forward to 2017 EXPENDITURES: 2017 Amended 2015 Variance INSTRUCTIONAL SERVICES 165,431, ,843, ,587, INSTRUCTIONAL SUPPORT SERVICES 45,931, ,977, ,953, OPERATIONS & MAINTENANCE 40,893, ,022, (128,659.00) AUXILIARY SERVICES 35,846, ,188, ,657, GENERAL ADMINISTRATIVE SERVICES 9,301, ,399, (98,309.85) CAPITAL OUTLAY 40,069, ,869, ,200, DEBT SERVICES 15,699, ,743, (4,043,984.06) OTHER EXPENDITURES 8,666, ,013, (347,004.37) TOTAL EXPENDITURES 361,840, ,058, ,781,

29 (Includes All Funds and Fund Sources) 29

30 How Do We Compare to State Average? Includes all State, Federal, and Local Expenditures (including Local School Accounts) State Average Figures Generated from FY 2015 Actual Expenditures. 30

31 (Includes All Funds and Fund Sources) 31

32 Category Definitions Personnel Services This group consists of costs for salaries and wages to permanent, temporary, and substitute school employees for personal services rendered while on the payroll. Purchases Services This group includes costs for services which by nature can be performed by persons or firms with specialized skills and knowledge; or services performed by persons other than school employees to operate, repair, and maintain property owned or used by the school system. Examples: Professional Education Services (Professional Development), Other Professional Services (Board Members, Auditing, Legal Fees, etc.); Property Services (Building Repair, Insurance, Garbage Services,); Communications (Telephone, Internet, Postage), Utilities (Electricity, Water, Gas, etc.); Travel and Training; Other Purchased Services (Food Services, Athletic Officials, Transportation- (Other Providers), etc. Material and Supplies This group includes costs for items that are consumed, worn out, or deteriorated through use. Examples: Instructional Supplies, Books and Periodicals, Custodial & Maintenance Supplies, Vehicle Supplies (Fuel, Oil, Tires, etc.); Food/Food Supplies; Office Supplies, Other Non- Instructional Supplies (Testing Supplies, Non-Instructional Software, etc.) and non-capitalized equipment. Capital Outlay This group includes cost for acquiring fixed assets, including land or existing buildings; improvement of grounds; capitalized property such as buses, furniture, servers, etc. Debt Services Principal & Interesting payment in regards to leases and local and state bonds. Categories and Definitions are set by the State Department of Education in the State Accounting Manual. 32

33 Budgeted Expenditures from Local Tax Revenue Budget Expenditures from Local Tax Revenue Personnel 37,083, Purchase Services (Utilities, Insurance, Maintenance Repair Services) 24,331, Material, Supplies & Equipment 5,365, Local Debt Services 16,023, Transfer to Cap Projects 15,000, Other Misc 487, mill match 36,606, Local Tax Expenditures 134,898, Disclosure: Local tax revenue equals ad valorem, sales tax, and other county taxes including the ½ cent sales tax for maintenance. Does not include expenditures related to non-tax revenue such as food service income, after school program, medicaid reimbursements, and fees/fundraisers which are generated at the local school level. 33

34 Disclosure: Local tax expenditures funded through ad valorem, sales tax, and other county taxes including the ½ cent sales tax for maintenance. Does not include expenditures related to non-tax revenue such as food service income, after school program, medicaid reimbursements, and fees/fundraisers which are generated at the local school level. 34

35 Local Tax Expenditures (Personnel) Local Tax Expenditures (Personnel) Penny Tax Salaries and Benefits (including long term subs) 30,316, CNP Pass-through Benefit Cost 4,401, Employee Supplements and Stipends (Athletic, Band, etc.) 1,716, Substitute Cost (short term subs only) 650, Total 37,083,

36 Local Tax Expenditures (Purchase Services) Purchase Services Professional Services (Legal, Audit, Security, etc.) 682, Other Purchase Services (Copier, Postage, Printing, other misc items) 165, In District Travel 265, In State Travel 99, Out of State Travel 94, Insurance 1,790, Utilities, Phone Bills, Equip Agreements, Portables etc. 11,792, Maintenance Repair Services* 6,852, Professional Development 505, IT (Data Procession, Infrastructure Cost, Internet, Leases) 1,240, Noninstru Software Licenses (online regisistration, parent-link, time clock, accounting system, GIS) 472, Special Ed Purchase Services 370, Total 24,331, *Includes contengency funds for unexpected maintenance repairs 36

37 Local Tax Expenditures (Material & Supplies) Material, Supplies, & Equipment Instructional Supplies (including additional textbooks) 618, Special Ed Supplies/Equipment 76, Instructional Software 675, Noninstructional Software 124, Instructional Equipment 172, IT/Infrastructure Equipment 1,510, Testing Supplies 31, Nursing Supplies 59, Noninstructional Equipment/Supplies (including time clocks) 140, Admin Supplies (Superintendent, Communication, HR, B&F etc) 70, Janitorial/Ground Services Supplies 1,630, Building Services Supplies/Tools/Equipment 216, Transportation Supplies 40, Total 5,365,

38 Local Tax Expenditures (Other) Other Miscellaneous Registration Fees for PD conferences etc. 168, Athletic Funds Transferred to School for Materials & Supplies 135, Band and Choral Funds Transferred to Schools for M & S 154, Career Tech Funds Transferred to School for M&S 30, Total 487,

39 Budgeted Staff for FY 2017 with Penny Tax Penny Tax Funded Personnel Teacher Certified Staff Teachers 172 Counselors 18 Asst Principals 12 Other Certified Employees 21 School Support Personnel Teacher Aides (Special Ed, Instructional) 39 Clerical (Bookkeepers, Registrar, Secretary, etc.) 98 Technical (IT Technicians, Nurses, Social Workers, etc.) 39 Maintenance (Custodians, Mechanics, HVAC Repair, etc.) 75 Bus Drivers 53 Other Administrative Positions 8 Total Number of Staff Budgeted with Penny Tax 535 Total Cost of Salaries and Benefits $ 30,316,227 Extracurricular & Athletic Supplements $ 1,716,517 Total Cost $ 32,032,744 39

40 Local Revenue Timeline ( ) 40

41 Budget Staff by Fund Source Budgeted Staff for FY 2017 by Fund State Programs State Foundation 1,924 Nurse 14 Transportation 266 AL Reading Init. 14 State OCE (Support Units) 500 State Other (Pre-K, At-Risk) 25 Total State 2,743 Federal Programs IDEA Part B 120 Title Programs 70 CNP 220 Fed Other 5 Total Federal 415 Local Programs Sales Tax Funded 535 Total Local 535 Total Employees 3,693 41

42 Disclosure: Student numbers include Pre-K and employee totals include State, Federal, and Local employees 42

43 FY 2017 Employer Benefit Cost FY 2017 Board Cost Per Employee PEEHIP $800/month $9,600/per year Retirement Tier I 12.01% Tier II 10.82% FICA 6.20% Medicare 1.45% Unemployment Comp 0.05% Total Employer Benefit Cost Budgeted For FY 2017 $64,858,149 43

44 The Board Health Care PEEHIP Cost Has Increased over 300% per Employee Since 1998! 44

45 Act Number establish a new defined benefit plan for employees (Tier 2). Tier 2 = employees hired on or after January 1, Tier 1 = Employees hired before January 1, Vested Tier 1 can retire with full benefits at age 60 or after 25 years of service. Vested Tier 2 may retire after completing at least 10 years of service at the age of 62. Source: Legislative Fiscal Office, Presentation to the Legislature on Alabama s Financial Condition

46 FY 2017 Employee PEEHIP Rates State PEEHIP Board Changes for Employees: Single Employee Rates: Increase from $15 per month to $30 Family Coverage Rates: Increase from $177 per month to $207 (without spouse) and $307 (with spouse). Wellness Premium (if you do not get a premium waiver) is $50 per month for member and $50 per month for spouse. Monthly Tobacco premium is $50 for the subscriber AND an additional $50 for the spouse if both are tobacco users. Family dental premium is $50 per month. The single dental rate remains $38. This will result in significant rate increases for all employees. For example, a nonsmoking family coverage plan with a spouse and dental, including the wellness premium waiver, increases from $227 per month to $357 per month. This is an increase of $130 per month (a 57% monthly increase). 46

47 FY 2017 Debt Service Debt Service for FY 2017 Long Term Debt Principal Payment Interest Payment Capital Outlay School Warrants, Series ,690,000 1,769,850 Refunding School Warrants, Series ,925,000 1,447,669 Partial Refunded School Warrants, Series ,036,813 Total Pooled State Warrants 1,875, ,708 Bus Lease 104, Infrastructure Lease Payments 404,241 18,270 Total 7,998,968 8,024,867 Total Principal and Interest Payments 16,023,834 47

48 Long Term Debt Chart Local & State Bonds (Payments) ,203, ,927, ,866, ,875, ,845, ,633, ,189, ,205, ,715, ,477, ,523, ,519, ,523, ,150, ,148, ,170, ,185, ,790, ,811, ,829, ,854, Sinking Fund Payment to escrow made to cover State Required Balloon Payment Structure In Local 2005/Refunded 2012 Bond will be paid off. In Local 2007/Refunded 2015 Bond will be paid off. 48

49 2017 Capital /Maintenance Projects School Description Budgeted Cost Baldwin County High Admin Area HVAC $100,000 Bay Minette Elementary Drainage Issues $43,500 Daphne East Elementary Boiler Replacement $50,000 Daphne Elementary Chiller Replacements (3 Chillers) $325,000 Daphne High Replace Air Handlers $50,000 Daphne High Boilers and Pumps $120,000 Elberta Middle Auditorium Upgrades $150,000 Fairhope Middle Fix HVAC Issues $75,000 Foley Elementary Gym HVAC $200,000 Foley High Outdoor Lighting Replacements $225,000 Foley High Admin Area HVAC $100,000 Robertdales High Replace Air Handlers $100,000 Spanish Fort High Drainage Issues $40,000 Spanish Ft Elementary Chiller on two story building $150,000 Spanish Ft High Parking Addition $505,000 Spanish Ft Middle Fix HVAC Issues $30,000 Summerdale School Complete PE Building $150,000 Summerdale School Replace GYM HVAC $100,000 Various Schools Restroom Renovations $300,000 Various Schools Replace non repairable intercom systems $400,000 Various Schools Flooring Replacement $400,000 Various Schools Roof Replacements $250,000 49

50 2017 Capital /Maintenance Projects (continued) School Description Budgeted Cost Daphne High School Update Fire Alarm System $225,000 Baldwin County High School Update Fire Alarm System $225,000 Central Baldwin Middle Update Fire Alarm System $100,000 Daphne Middle School Update Fire Alarm System $100,000 Rosinton Update Fire Alarm System $100,000 Gulf Shores Middle Update Fire Alarm System $150,000 Bay Minette Elmentary Update Fire Alarm System $100,000 Fairhope Intermediate Chiller Replacement $200,000 Delta Elementary Chiller Replacement $150,000 Daphne Middle School HVAC - Air Handler $300,000 Central Baldwin Middle HVAC - Air Handler $300,000 Elberta Middle School Boiler Replacement $75,000 Robertsdale High School Boiler Replacement $120,000 CF Taylor Alternative School Roof Replacement $250,000 Summerdale Elementary Roof Replacement $250,000 Total $6,508,500 50

51 Pay As You Go (Phase 1 Rolling into FY 2017) School Description Cost Elberta Elementary 14 Room Addition & Cafeteria Expansion 3,518,900 Elsanor Elementary 10 Room Addition 1,787,500 Central Baldwin Middle 14 Room Addition 2,402,400 Perdido Elementary 16 Room Addition 2,745,600 Fairhope High 20 Room Additiona & Cafeteria Expansion 4,146,000 Total 14,600,400 51

52 Pay as You Go (Phase 2)- FY 2017 Pay As You Go Projects (Phase 2) Spanish Fort High School Size (Sf) Cost Total Portables Removed New Classroom Addition 24 Rooms & GYM 61,000 $140/s.f. $ 8,540,000 New Dining Addition 3,000 $150/s.f. $ 450,000 Architect/Engineering/Furniture 10% $ 899,000 Total $ 9,889, Daphne East Elementary School Size (Sf) Cost Total Portables Removed New Classroom Addition 14 rooms 16,800 $140/s.f. $ 2,352,000 Architect/Engineering/Furniture 10% $ 235,200 Total $ 2,587,200 7 Magnolia Elementary (Rezoning part of Swift and Foley Elem to eliminate portables in both places) Size (Sf) Cost Total Portables Removed New 14 Room Addition 16,800 $140/s.f. $ 2,352,000 Expansion to Dinning Area 3,000 $150/s.f. $ 450,000 Architect/Engineering/Furniture 10% $ 280,200 Total $ 3,082,

53 How Do We Fund The Pay As You Go Program? No more computer lease payments representing close to $7.5 million per year in savings which were used for Capital Projects. Locally funded departments (non-maintenance) cut budgeted expenditures by $1,943,489 in FY Absorbed 19.5 locally funded teacher units into State Foundation funding resulting in $2,932,500 in savings that went towards capital projects. State OCE Funding increased approximately $430k over and above the State 4% raise requirement. This allowed us to absorb additional classified support personnel into State Funding which created additional funds for capital projects. 53

54 How Do We Fund The Pay As You Go Program? In January 2015 the board refinanced the 2007 $150 million capital bond issuance, creating $302,245 in interest savings in FY 2017 and $583,245 in interest savings from FY 2018 to FY 2033 with realized savings of over $10.4 million over that period. In FY 2017 our 10 year bus lease will be paid off allowing us to utilize the full amount of State fleet renewal dollars on new bus purchases instead of paying lease payments. This will result in approximately $1.6 million of savings for local funds that are utilized for capital projects. In FY 2017 we are estimated to have fewer HVAC, roof, and boiler repair expenses due to the investment of funds in our current facilities. This has resulted in more capital funds from local and state sources that are now available for new construction. 54

55 How Do We Fund The Pay As You Go Program? Estimated revenue for the 1% sales tax is expected to reach approximately $36 million. Expenditures from the 1% sales tax (535 positions and countywide extracurricular/athletic supplements) are budgeted around $32 million. Leaving an additional $4 million that can be used for capital projects. SUMMARY: We have created Efficiencies, Cut Expenditures, and Utilized Local Revenue Increases to provide funding for the Pay As You Go Program. Unfortunately, we still are not able to build a new school building but it allows us the ability to expand our current facilities. 55

56 General Fund Budget Summary General Fund Beginning Fund Balance, 10/1/2016 $ 42,384, Operating Revenue $ 274,921, Operating Expense & Interfund Transfers $ (271,331,198.82) Excess (Deficit) $ 3,590, Ending Fund Balance, 9/30/2017 $ 45,974, General Fund Balance Maintains a 2 Month Operating Reserve Balance 56

57 Questions, Concerns, or Comments Questions? Public input sheets available. Any written questions will be addressed in the 2 nd budget hearing. 57