Dear Concerned Student, Parent, Employee, and/or Community Member,
The seven board members that make up the Limestone County Board of Education (BOE) are responsible for any and all actions of Limestone County Schools (LCS). All members that currently serve on the BOE were voted into office to give direction, governance, and responsibly provide the best education for the youth of our community in order to strengthen the workforce and provide for continued improvement for the good of the people. The BOE accepts all responsibility for the current financial situation of Limestone County Schools.
Our current situation is certainly not one that we are pleased by, but it is important to understand how we arrived at this point. We have made many improvements to improve the education provided to students, including our purchase of MacBooks, iPads, Network Cabling for Internet, and other technology used in the schools. We also voted to improve most campuses in Limestone County. You would probably recognize improvements at the school in your community. However, the anticipated revenue growth needed to continue with the current expenditures has not grown to the anticipated levels.
The BOE could have made cuts along the way because the enrollment declined in 2015-2016. State funding is provided based upon the previous year’s enrollment, so the financial impact was during the 2016-2017 school year. During this same period our percentage of tax revenue unfavorably changed.
Anticipated growth in the economy caused hesitancy to make reductions during this period.
The BOE recognized inconsistencies in the budgeting process last summer. Those inconsistencies ultimately led to the hiring of a new Chief School Financial Officer (CSFO). The BOE currently believes Mrs. Hubbard is the leader we need in the position; however, it will take some time for her to become an expert on school finance.
The BOE will vote tonight on whether or not to amend the
Fiscal Year 2018 (FY18) Budget. Budget amendments are a
normal procedure, and at least one amendment per fiscal year
is required by the Alabama State Department of Education (ALSDE). The LCS FY18 Original Budget, which was approved by the ALSDE, had excess revenues over expenditures of over $3.8 million in the General Fund. The proposed amended budget lowers the excess projection to almost $1.5 million. The BOE is disappointed that the projected ending General Fund Balance is lower than first expected, but pleased that we are moving in a positive direction. The remaining local revenue collections for the current fiscal year are critical to achieving the fund balance projection of this amendment.
The State of Alabama requires that our system maintain in its General Fund balance a one month operating reserve, which is calculated by dividing General Fund budgeted Expenditures plus Other Uses by twelve. This threshold is not projected to be met within the current fiscal year. Current projections have FY18 ending with the General Fund Balance at 38% of the one month requirement. It is not where it should be but a step in the right direction.
We had been above one month’s fund balance for many years until FY16. We ended FY16 with roughly $2.2 million which is lower than the State of Alabama requires. We went lower in FY17 and ended that year with roughly $900,000. The BOE is currently projecting a General Fund Balance of $2.4 million ($900,000 + $1.5 million excess revenue over expenditures) by the end of the fiscal year ending September 30, 2018.
The following items contributed to the lowering of the General Fund Balance:
• A decline in overall enrollment during the 2015-2016 school year.
• Athens City Schools virtual school growth over the past 2 years led to decline in LCS % of total enrollment within Limestone County. That means LCS gets less of the local tax revenue. This issue seems to have leveled to predictable numbers that can be better calculated for budgeting purposes.
• Tax Revenue split with Madison City Schools, Huntsville City Schools, and Athens City Schools can affect our revenue in the future.
• New Construction Projects – Sugar Creek Elementary, Creekside Primary, and Career Tech School Additions
• Construction Remodels – Gyms, Lunchroom Additions, and other improvements
• Safety Measures – SafeDefend and School Resource Officers
Much of the money for the construction projects was borrowed, but in an effort to keep debt lower, part of the cost was paid from what at the time was a robust General Fund Balance. Many projects happening at one time depleted the General Fund Balance, and the result is our current General Fund Balance being below the required one month balance.
The BOE is going to continue to provide the quality education you expect. The BOE strives to provide a work environment our employees can trust. With all of the announcements of industry coming to Limestone County the future is bright. We need to make some adjustments to improve our efficiency that will prepare us for future responsible growth.
is required by the Alabama State Department of Education (ALSDE). The LCS FY18 Original Budget, which was approved by the ALSDE, had excess revenues over expenditures of over $3.8 million in the General Fund. The proposed amended budget lowers the excess projection to almost $1.5 million. The BOE is disappointed that the projected ending General Fund Balance is lower than first expected, but pleased that we are moving in a positive direction. The remaining local revenue collections for the current fiscal year are critical to achieving the fund balance projection of this amendment.
The State of Alabama requires that our system maintain in its General Fund balance a one month operating reserve, which is calculated by dividing General Fund budgeted Expenditures plus Other Uses by twelve. This threshold is not projected to be met within the current fiscal year. Current projections have FY18 ending with the General Fund Balance at 38% of the one month requirement. It is not where it should be but a step in the right direction.
We had been above one month’s fund balance for many years until FY16. We ended FY16 with roughly $2.2 million which is lower than the State of Alabama requires. We went lower in FY17 and ended that year with roughly $900,000. The BOE is currently projecting a General Fund Balance of $2.4 million ($900,000 + $1.5 million excess revenue over expenditures) by the end of the fiscal year ending September 30, 2018.
The following items contributed to the lowering of the General Fund Balance:
• A decline in overall enrollment during the 2015-2016 school year.
• Athens City Schools virtual school growth over the past 2 years led to decline in LCS % of total enrollment within Limestone County. That means LCS gets less of the local tax revenue. This issue seems to have leveled to predictable numbers that can be better calculated for budgeting purposes.
• Tax Revenue split with Madison City Schools, Huntsville City Schools, and Athens City Schools can affect our revenue in the future.
• New Construction Projects – Sugar Creek Elementary, Creekside Primary, and Career Tech School Additions
• Construction Remodels – Gyms, Lunchroom Additions, and other improvements
• Safety Measures – SafeDefend and School Resource Officers
Much of the money for the construction projects was borrowed, but in an effort to keep debt lower, part of the cost was paid from what at the time was a robust General Fund Balance. Many projects happening at one time depleted the General Fund Balance, and the result is our current General Fund Balance being below the required one month balance.
The BOE is going to continue to provide the quality education you expect. The BOE strives to provide a work environment our employees can trust. With all of the announcements of industry coming to Limestone County the future is bright. We need to make some adjustments to improve our efficiency that will prepare us for future responsible growth.
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