School Board approves preliminary budget

School board members passed a $36.42 million preliminary budget for the 2016-2017 school year during a special meeting on Thursday.

The budget -- which has $36.42 million in expenditures and $32.97 million in revenue -- includes a $3.46 million deficit designed to help the district spend down an excess of money carried over from the previous year, according to Terri Raskiewicz, chief financial officer for the district.

"We have purposely budgeted a rather large deficit," Raskiewicz said, explaining that the state legislature is proposing capping the amount of money a school district can carry over each year to 20 percent. Last year, Siloam Springs Schools had a budget carryover of 29 percent, she said. Legislators have been discussing capping the carryover amount for a number of years, but talk has become more serious this year, Raskiewicz said.

Plans for the $3.46 million in excess carryover money include $1 million budgeted to build two new classrooms at Northside Elementary School. The school has already received grant funding for two classrooms, so the addition would allow for an entire new wing of four classrooms.

Other plans for the excess funds include spending $340,000 on the purchase of the recently acquired 29.94 acres at the intersection of East Kenwood Street and Bruce Rutherford Drive, spending $82,000 for the band bleachers in Panther Stadium, and finishing paying for the bus garage expansion.

The district plans to re-evaluate the budget in December, and if things are going well they may consider adding a library to the Northside Elementary School expansion, Superintendent Ken Ramey said.

Last year, the district budgeted for a deficit of $1.61 million but actually ended the year with a surplus of $200,000. Raskiewicz told the board she always budgets conservatively with the worst case scenario in mind. Last year the district received about $800,000 more in delinquent property tax than originally budgeted for, and spent about $800,000 less due to a combination of factors such as utility savings from a mild winter and lower gas prices.

Because of the district's careful financial management, they have been able to pay for many projects in cash such as the new Panther Stadium and the Career Academy of Siloam Springs building, without going to the public and asking for millage increases, Raskiewicz said.

School board members thanked Raskiewicz and Ramey for their careful financial planning.

"Ken and his team have done an exceptional job of managing this district's finances year after year after year," said board member Roger Holroyd. "That's why we are in this position."

In other business, the school board approved assurances that the district will spend state and federal money as required by law. The assurances are required by the Arkansas Department of Education and approved on an annual basis.

After the meeting adjourned, Scott Beardsley, of First Security Beardsley Public Finance, held a school finance seminar for board members. During the seminar he explained school funding and the district's current financial position.

General News on 09/25/2016