The Poplar Bluff R-I School Board held a workshop session on Thursday night to review the proposed district budget for fiscal year 2023.
What they discussed was a budget that expands salaries throughout the district and addresses several major capital expenditure projects at most schools.
“The creation of this budget was a team effort by everyone,” said Dr. Amy Jackson, assistant superintendent for business and finance. “This will be a historical budget that will benefit our kids, our staff and our community.”
The total revenue for the year is budgeted at $71,633,604, with total expenses budgeted for $78,986,046, for a budgeted shortfall of $7,352,439, according to budget documents.
The budget deficit comes from capital expenditures, with anticipated revenue of $6.3 million against planned spending of $14.6 million, accounting for $8.3 million in the red.
The budget includes a planned transfer of $974,759 from operating funds to capital funds, leaving the capital deficit at just under $7.4 million.
The remaining capital expenses will be drawn, if necessary, from Fund 4 capital reserves, which currently sit at $17 million, according to the discussion.
Even if the district has to meet all the capital funds, the reserve fund would still end the fiscal year at around $9.6 million dollars, officials said.
Jackson emphasized this budget is “very conservative on revenue,” as it is based on past taxation levies and anticipated state funding of $22 million, both of which could be greater than estimated.
She also pointed out many of the capital expenses can be offset with grant revenue, which the district is pursuing in several areas.
Some of the major capital expenses include the downtown administration building, the new junior high activity center, the Culinary Arts Center at the TCC, and visitor’s side bleachers and concession stands at the high school stadium.
In the meeting’s one voting item, the board approved local contractor CE Norton Construction as the vendor for the high school concession stand for the bid of $532,900.
Other planned maintenance projects dealing with items such as roof repair, window replacement and HVAC installation affect most district buildings.
Superintendent Dr. Scott Dill said, “Our capital expenditures will still leave us with healthy balances while we can pursue multiple projects simultaneously.”
Salaries make up the bulk of the budget, accounting for 70% of all spending. The board recently voted to increase the base salary for starting faculty to $38,000.
This change, along with the scheduled increases based on the salary step system, brings FY 23 salaries to $49.3 million. Approximately $5.76 million of this amount will be offset by federal Elementary and Secondary School Emergency Relief (ESSER) funds, which are available for ongoing COVID-19 relief efforts.
ESSER II funds are budgeted to offset $1.2 million in capital expenses, with an additional $1 million from ESSER III funds also paying for capital projects.
“We haven’t budgeted all available ESSER funds,” Dr. Jackson said. “We can go back to amend and reallocate these funds to address needed areas.”
In addition to capital expenses, ESSER monies are also allocated for curriculum updates, professional development, transportation, facility improvements, communication and school safety.
ESSER funds are also providing the $594,000 for 620 new Chromebooks for the middle school and the four elementary schools.
After the meeting, Dill said, “We are very pleased with the work Dr. Jackson and our team has done with the budget.”
“It was an intricate and difficult budget because of all the federal dollars involved,” Dill said.
“Dr. Jackson has been thoughtful and deliberate in creating a budget that maintains good stewardship of our tax dollars,” he said.
Board president John Scott agreed with this assessment, saying, “This is a budget that will serve our students well and also serve our taxpayers well.”
The board will vote whether to approve the budget at next week’s regularly scheduled monthly meeting.