Money from capital projects reserves will help finish construction of a new Poplar Bluff Early Childhood Center expected to open in the fall of 2020 as part of a $57.3 million spending plan for the R-I district.
Revenues are expected to be just under $55.8 million in the next budget year, which starts July 1, but the district still expects to end with a healthy fund balances, according to the document approved Thursday by the Board of Education.
Assistant Superintendent Rod Priest has done an outstanding job of creating a budget that understands and supports the needs of the district, said Dr. Scott Dill, R-I superintendent.
“Funds have to be prioritized to meet the needs of our kids,” he said.
The district has planned for the early childhood spending and felt that paying for it from capital reserves would save taxpayers the cost of interest expenses, he said.
The district will take about $1.5 million from its reserve in fiscal year 2020. The district reserve has grown from $6 million in 2003 to $36 million at the end of 2018, although some funds are restricted or earmarked for specific purposes.
Construction of the new Early Childhood Center is expected to take another six months. The district has chosen to wait until the 2020 school year to open the building, Dill said, out of concern for how difficult a mid-year transition would be on 3 and 4-year-old students.
The early childhood project is the last of the longrange planning phase 1 efforts. Priest advised board members in his budget message that it would benefit the district to complete the phase 2 planning process.
“Having a clear vision will aid in budgeting in the future and assist in addressing needs in a timely manner,” he said.
Capital expenses will make up about $7.3 million of all costs in the fiscal year 2020 budget.
Included are: $3 million for the early childhood project; $80,000 for window and wall work at O’Neal Elementary; $98,000 for high school drivit repair; and $152,000 for otherlong range plans to be determined.
__Employee expenses__
The largest portion of spending covers salary and benefit costs, Priest explained. Before early childhood spending, this is 72% or $39.4 million of the budget.
The district has added $500 to the base salary schedule. That, with a step movement and increased costs for insurance and retirement, will be an average 3.5% increase to the budget, he said.
__Program expenses__
The district continues to fund the AmeriCorps tutoring program, which also receives money from federal programs and a Boys and Girls Club match. The total program costs are approximately $277,500, with a district contribution of $44,400.
The district will pay $59,000 for continued participation in a Truancy Court program that seeks to improve overall attendance.
__Technology and textbooks__
The district does not expect to see a large technology purchase for the junior or senior highs under this budget for the 1-1 initiative, unless the program is expanded to include the middle school.
The 1-1 effort began in the 2013-2014 school year, with the goal of providing one device for each student at the grade levels where it has been instituted.
Priest warned there may be costs if the district decides to expand to the middle school, which currently is 2-1.
“The (middle school) units in use now were purchased with one-time grant funds with no defined replacement cycle,” he said. “If the board decides to expand this program, this budget includes funds to replace one set of devices at the high school and move the units used by the seniors this year to the middle school.”
That would cost the district $110,000.
The district has budgeted $649,000 for textbooks districtwide, which includes digital resources that replace bound physical textbooks as part of the digital transformation process, Priest said.
Among the textbook purchases are $244,000 in spending to expand the Reading First program to kindergarten and grades fourth through sixth. It currently serves first through third grades, with efforts to increase time spent on reading instruction and interventions.
“The addition of the same reading materials across the district provides the same resources in all buildings and in all classrooms,” Priest said. “It is our hope that this will improve our current reading practices and increase student achievement.”
Math textbooks will be provided for kindergarten through sixth grades under a line item of $165,000.
__Other expenses__
The district has also budgeted the purchase of four buses at a cost of $300,000.
__Revenues__
The district expects to get almost 45% of its money from local property taxes, or $24.5 million. The next largest amount of incoming dollars will be from the state, at 41%, or $22.6 million. Remaining money comes from the county, federal and other sources.
The state has said its school funding formula will be fully funded, Priest said, warning that those revenues would change if there is a withholding at the end of the state’s fiscal year.
The transportation revenue from the state is budgeted to increase, he said, but added there is a history of the state cutting this money if their revenues fail to meet expectations.
__Debt__
The current budget year marks the end of two debt payments, for series 2014 and 2009 bonds.
Overall debt expenses will be down in FY20 by just under $485,000, but it will not free up funds, Priest said. FY20 will see an increase of reserve that will be used to cover increased principal costs in the fiscal year 2021 for other existing, he said.
The district has approximately $44.4 million in outstanding debt, including $36.9 million from the 2014 districtwide improvements to the high school, middle school and elementary schools.
The Thursday night meeting marked the last school board meeting for Priest, who is retiring at the end of this month.
“It’s been a pleasure for me, in my five years on the board, with Rod as our finance guy,” said board President John Scott. “I’ve always felt very comfortable with what he was telling us and the administration and that we were always in a good financial position.
“It’s been a real luxury for me and I think the rest of the board to have someone like you here watching the money.”
Dr. Amy Jackson will take over for Priest and will do a great job keeping the district headed in the right direction, said Scott.