Barrow BOE to tap reserves for FY09
BY KRISTI REED
The Barrow County Board of Education is projecting a budget shortfall of $2.4 million for fiscal year 2009 and is planning to tap its reserve funds to make up the difference.
Assistant superintendant of business services Ken Cato presented preliminary budget figures to the BOE Tuesday. Cato said despite the projected deficit, the school system would remain in the black by tapping into its reserves of $7 million.
The school’s fiscal year begins July 1. The system’s tax rate won’t be set until later this year.
RISING EXPENSES
Driving the projected shortfall for FY09 is that the school system’s expenses are rising faster than its income.
The preliminary budget includes over $100.5 million in school system expenditures. Approximately 85 percent of this amount, or $85 million, is allocated for salaries and benefits.
In addition to the listed expenditures, Cato said his department had identified $1.27 million in other items that need to be included in the budget. Cato proposed allocating additional funds for transportation, fuel, computer purchases, building improvements and personnel.
Cato listed transportation as the number one priority for consideration. Cato recommended the Board allocate an additional $327,000 for the purchase of new school buses. $790,000 has already been set aside to purchase seven 72-passenger buses and four 54-passenger buses. The additional funds would allow the school system to purchase a total of 12 72-passenger buses and three 54-passenger buses.
Transportation director James Cantrell urged the BOE to approve the request so that the buses could be ordered and received before the start of the next school year.
Cantrell said his department has identified the need for five new routes next year. Currently, transportation only has two spare buses, each with over 90,000 miles, to use for these routes. Of the 123 buses in the Barrow County school fleet, 72 will exceed ten or more years of use within the next four years. Approximately one-third of the fleet is already more than ten years old.
District 5 board member Lynn Stevens questioned whether the purchase of additional buses should be the top priority given rising fuel costs. Cato listed fuel as the number two priority and recommended adding $200,000 to the budget to cover rising diesel prices.
Cantrell said the school system averages 7,500 gallons of diesel each week at a cost of $3.90 per gallon or approximately $29,250 a week. At current prices, the school system will spend $1.05 million next year for fuel. Several board members expressed concern that the $1.2 million proposed for fuel costs may be too low if prices continue to rise.
Barrow County school buses average over 15,000 miles per year per bus. Buses get an average six miles to the gallon.
REVENUES UNCERTAIN
Although system leaders do expect revenues to be up by around $10 million next year, some of that projected income is uncertain.
Revenues, projected at $98 million for FY09, include $60.5 million in state funding and $36.3 million in local taxes. But shortfall in either area could spell major financial trouble for the school system.
While state school funds are always in flux due to changing political whims in the Legislature and Governor’s office, one of the BOE’s main concerns is the Barrow County tax digest and local funding. The school system’s budget is based on a five percent increase in the digest from last year. But last month, Barrow County Chief Appraiser Cecil Highfield said he expects the digest to remain flat in 2008 due to the housing bust.
OTHER BUSINESS
In other business, the Board debated a request from Barrow County Fire and Emergency Services to donate a parcel of land near Bethlehem Elementary School for a replacement fire station.
Chief Robert Post said the relocation of station three is part of a master plan for improved fire protection in the county. Post said he hopes to see the county’s ISO rating lowered from class 5 to class 3 within the next three to five years.
The board is considering three options for the property: Donating it to the county, selling it back to the previous owner or retaining it for future school system use.
The BOE will meet in regular session on Tuesday, May 6 at 7 p.m. The board meets at 179 W. Athens Street in Winder.
