School board members approved a $33.7 million preliminary budget for the 2014/2015 school year at a special meeting on Tuesday night.
The meeting was held so the board could approve the budget before the Sept. 30 deadline set by the state. The budget does not include the district's federal funds. Federal programs coordinator Kristi Wiggins will present the school's federal budget an the annual report to the public in November.
The budget includes $32.3 million in projected revenue from state, local and unrestricted federal sources and $33.7 million in expenses, creating a $1.4 million deficit.
The deficit is largely due to a $1.2 million transfer out of the district's carryover funds from the previous year that was applied to the building fund to pay for part of the new stadium construction, according to superintendent Ken Ramey. The Siloam Springs Public Schools Foundation is raising money to pay for $2 million of the cost of the stadium and will pay back the $1.2 million over the next 10 years.
That leaves the district with an approximately $230,000 deficit. Last year the preliminary budget showed a deficit of $315,000 and the school actually ended the year with an excess of $754,172, Ramey said.
"I'm not concerned that we won't finish in the black again," he said.
Even with a $1.4 million deficit, the preliminary budget shows the district will have $7.5 million -- or 22 percent of it's total budget -- to carry into the following school year. The recommended carryover is 18 percent of the total budget, Ramey said.
"We're pretty solid," he said.
Paying for the new stadium up front in cash without having to go into debt or raise the millage is a positive thing, board member Louie Thomas said.
In addition to the stadium costs, the district has also seen a number of other increases in expense, Terri Raskiewicz, chief financial officer for the district, said in her report to the school board.
Some of the increases include a $400 raise to staff members' base salary, step raises, eight new teacing positions, several smaller construction projects, adding more money to the district legal fund, and additional health insurance and tax obligations for employees. The district's bond payment is also increasing by $1 million this year.
The school is expected to see a $400,000 increase in revenue -- $200,000 from local sources and $200,000 from state sources. Property tax can fluctuate, Ramey said. The state funds are increasing because the legislature has increased the amount school districts are paid for each student by about $100, to $6,521, he said.
"I believe we have a very solid budget.... I'm confident in the numbers and I would like to propose this budget," said Raskiewicz.
In other business the school board took the following actions;
• Accepted the resignation of a middle school science teacher.
• Approved the hiring of a middle school reading teacher.
General News on 09/28/2014