The Poplar Bluff R-1 Board of Education approved a deficit budget for the 2017-18 fiscal year Thursday, but according to Superintendent of Finance Rod Priest, the excess spending will not negatively impact the district.
Priest said because legislators have vowed to fully-fund the formula, his calculations are based on those numbers. However, some educators are skeptical lawmakers will stand by their word.
"We have to go by what they're telling us right now," Priest said. "In the past I've sandbagged a little bit, anticipating cuts and not knowing. I'm not doing that much here. They said they'd fully fund it so I plugged that revenue in."
Though the deficit spending could reach nearly $800,000, the majority of expenditures will cover one-time facility improvements and will be paid for with the district's capital project reserve fund. The full deficit will only be met if all expenditures occur before June 30, 2018, and end on the high side of anticipated costs.
Priest said some of the deficit will be covered by carryover from last year's funds and said there is room for the district to gain revenue, as he strategically budgeted by figuring low revenues and high expenses.
According to Board of Education President John Scott, the conservative style has worked well for Priest in the past. Scott pointed out a $3.5 million gain at the end of the 2015-16 fiscal year due to Priest's planning.
"We may gain some revenue, because I am using a lower attendance number than it was in prior years," Priest said. "So if we gain students, we will gain revenue."
Priest also said numbers could also see an increase depending on local revenue based on the district's assessed valuation and collection rate.
"From my perspective, I think Mr. Priest is a little shallow when putting in the calculations and that builds a good budget," Superintendent Scott Dill said. "I think he depicts expenditures a little on the high side, so we'll meet in the middle someplace."
Already one expenditure has come in significantly less than Priest budgeted for in the 2018 financial plan. During the same meeting, board members approved to hire Pro Cut Lawn, LLC, to assist with district-wide mowing operations at a yearly cost of $56,000. The 2017-18 budget had allotted $98,000 to cover mowing services. Going with Pro Cut Lawn, LLC, saved $42,000.
Outgoing high school principal Michael Kiehne said the graduation rate for students earning a diploma in four years saw an increase during the 2016-17 school year.
"2017's graduation rate was 84 percent, just less than a 1 percent increase from last year, so it continues to trend upward," Kiehne said. "At graduation, we filled the coliseum, which was a good thing and a positive evening."
Dill commended Kiehne on his work centering around student success.
"Graduation rate is one of the most vital statistics of a school district," Dill said. "Numbers on the rise mean a job well done at the high school."
Thursday was Kiehne's last day as a Poplar Bluff R-1 employee, as he begins a new journey with Woodland R-IV as the district's new superintendent.
Booster Club President Wade Pierce addressed board members with the 2016-17 financial report. During the discussion, Pierce announced Mike Cook will be the new sub-contractor for concessions during sporting events and said lowering the prices on a few items, including a reduction in the cost of $3 water, is a Booster Club goal.
Pierce also said a potential partnership with Academy Sports is in the works and attention to the malfunctioning scoreboard at the stadium is a focus for the group. He also announced the The Annual Booster Club Golf Tournament is scheduled for Friday, Aug. 4, at Westwood Hills Country Club.
The next Poplar Bluff R-1 Board of Education meeting will be held at 7 p.m. Thursday, July 20, at the Central Office Board Room, located at 1110 N. Westwood Blvd.