BARBOUR COUNTY SCHOOLS SUPPLEMENTAL BUDGET HEARING October 8th, 2018 FISCAL YEAR 2019 PROPOSED OPERATING BUDGET Dr. Matthew Alexander, Superintendent Mr. Marcus Lennon, Chief Financial Officer

BUDGET PROCESS The budget process should be interactive and inclusive. Department heads are encouraged to have input in the preparation of their respective budgets. District is required to hold two public hearings Board members and employees may be asked to make suggestions that are considered for implementation. Board members must approve the budget before it can be submitted to the ALSDE.

BUDGET CONSTRAINTS AND GUIDELINES While preparing the budget, consideration was given to accommodate guidelines enacted by the following agencies: Alabama State Department of Education Alabama State Legislature U. S. Department of Education AdvancED

BUDGET CONSTRAINTS AND GUIDELINES (cont.) Some funds that are available require local matches in order to receive funds. Foundation Program Local Match -$1,095,160 Capital Purchase Local Match – $93,984

FINANCIAL FUNDS General Fund – General operations of the local school district, e.g. State Funds, Property Taxes and Local Appropriations Special Revenue Fund – Federal programs and funds designated for a specific purpose, e.g. Title I, Title II and CNP. Also includes Local School Pubic Funds. Capital Projects Fund – Acquisition or construction of major capital expenditures Debt Service Fund – Payments of long-term debt Fiduciary Fund – Non-public local school activity monies

STATE FUNDING PROCESS State funds districts based on student enrollment. Each district receives a proportionate share of State funding based on enrollment. BCSD was funded based on an enrollment of 763.6 students. The total state enrollment is 730,925; therefore, BCSD has one tenth of a percent (0.10%) of the total student population in the state of Alabama. The difference in the quality of education in terms of funding is then a product of local support. Districts that provide more local support per pupil have the following advantages: Lower student-teacher ratios Enhanced opportunities for students More access to current technology

Student Enrollment (For school years 2008 - 2019) 1,125.20 1,051.10 1,064.25 1,020.75 1,029.90 1,012.75 988.70 908.90 860.65 850.70 784.65 763.60

Foundation Program Units Barbour County School District FY2019 FY2018 Change System ADM 763.60 784.65 -21.05 Foundation Program Units Teachers 44.77 45.68 -0.91 Principals 3.00 0.00 Assistant Principals 0.50 Counselors 2.00 Librarians Career Tech Director & Counselor 0.25 Total Units 52.52 53.43

Foundation Program (State and Local Funds) FY 2019 FY 2018 Change Salaries 2,718,339 2,702,427 15,912 Fringe Benefits 1,078,623 1,076,259 2,364 Other Current Expense ($17,950/unit) 942,732 ($17,533/unit) 976,763 -34,031 Classroom Instructional Support Student Materials ($536.07/unit) 28,155 ($421.51/unit) 22,521 5,634 Technology ($300/unit) 15,756 ($211.51/unit) 11,302 4,454 Library Enhancement ($96.137/unit) 5,049 ($30.439/unit) 1,627 3,422 Professional Development ($90/unit) 4,728 ($77.55/unit) 4,143 585 Common Purchase ($0/unit) Textbooks ($70/adm) 53,453 ($54.518/adm) 42,778 10,675 Total Foundation Program 4,846,835 4,837,820 9,015

*Capital Purchase funds are not considered operating revenues. State Funds State Funds FY 2019 FY 2018 Change Foundation Program-ETF 3,751,675 3,878,070 -126,395 School Nurses Program 89,626 88,103 1,523 Salaries-1%per Act97-238 Technology Coordinator 55,940 42,710 13,230 Transportation Operating Allocation 725,678 698,297 27,381 Fleet Renewal (7,109/bus) 113,744 (6,344/bus) 101,497 12,247 Current Units Capital Purchase* *151,822 *162,196 -10,374 At Risk 28,677 29,700 -1,023 Career Tech (O & M) 6,029 6,128 -99 Total State Funds 4,923,191 5,006,7101 -83,510 *Capital Purchase funds are not considered operating revenues.

State Funds - Local Match Local Funds FY 2019 FY 2018 Foundation Program (10.00 Mills) 1,095,160 959,750 135,410 Capital Purchase (0.860704 Mills) 93,984 (0.868535 Mills) 83,143 10,841 Total Local Funds 1,189,144 1,042,893 146,251

FUNCTIONAL EXPENDITURE AREAS The Eight Functional Areas of Expenditures: Instructional Services– activities directly with the interaction between teachers and students Instructional Support Services– activities proving supervision and/or support to facilitate instruction Operation & Maintenance– activities concerned with keeping the physical plant open, comfortable and safe, and maintaining the grounds, buildings and major equipment Auxiliary Services– activities of a subsidiary capacity and lending assistance to the educational process General Administrative Services – activities concerned with establishing and administering policy for operations Capital Outlay – activities of acquiring land, buildings, improvements, construction, architecture and engineering Debt Services – activities involved in servicing the long term debt(s) of the school system Other Expenditures – activities of programs other than those normally considered “day school”

Budget Revisions Once the Budget file from our accounting system is filtered through the ALSDE website, it will filter the entire budget electronically for coding and amount errors. Here is a summary of the revisions on the following slides.

Required Adjustments per ALSDE Coding Corrections Classroom Instructional Support (CIS): Changed from Central Office Cost Center #8100 to the 3 School Cost Centers (#0020, #0025, and #0035)with equitable and approved amounts for Textbooks based on enrollment. Corrected Coding for BC Primary School’s Student Materials Corrected Coding for BC Intermediate School’s Student Materials Corrected Coding for BC High School’s Library Enhancement Corrected Coding for BC Technology Coordinator Computer Hardware Sfund#1221 Updated Allocation for ESL State Sfund #1252. Original Allocation was $7,542 for FY2019, but it has been updated to $6,229. Expenditures have been adjusted to $6,229 as well. The amount of Early Intervening Services budgeted for Spec Use#0063 was reduced by $2,479 to comply with 15% maximum of total Sfund #3210 Allocation. In response $2,749 was added to back to Sfund #3210 under Object #329 (Other professional services).

Required Adjustments per ALSDE cont. Removed a Salary on Sfund #6001 that was budgeted in error in 2017-2018 and 2018-2019. Reduction total is $54,927.09 which includes base salary and benefits. Updated Allocation for ELL Federal Sfund #4150 (Title III). Original Allocation was $10,570 for FY2019, but it has been updated to $0. Expenditures have been adjusted to $0 as well. Title I will be used to serve the needs for any ELL students for FY2019. Reduced areas of expenditures that have not been used in the last 3 Fiscal years in Sfund #6001

PROPOSED TOTAL FUND EQUITY GENERAL FUND FY 2019 (Sept. 24th Hearing) Total Revenues & Other Fund Sources $7,145,203 Total Expenditures & Other Fund Uses $7,158,695 Excess of Revenues Over (Under) Expenditures $(13,492) Fund Balance Beginning of the Year $436,118 Ending Fund Balance at the end of the Year $422,626* *70% of One Month Operating Balance of $596,557 which is a shortfall of $173,931

PROPOSED TOTAL FUND EQUITY GENERAL FUND FY 2019 (October 8th Hearing) Total Revenues & Other Fund Sources $7,143,890 Total Expenditures & Other Fund Uses $7,044,400 Excess of Revenues Over (Under) Expenditures $99,490 Fund Balance Beginning of the Year $436,118 Ending Fund Balance at the end of the Year $535,608* *91% of One Month Operating Balance of $587,033.33 which is a shortfall of $51,425*

SPECIAL REVENUE FUNDS PROPOSED BUDGETED REVENUES & OTHER FUND SOURCES FY 2019 (September 24th, 2018) State $ 0 Federal $ 2,356,815 Local $ 236,547 Other Revenues & Fund Sources $ 252,001 Special revenue funds included in the budget are comprised of federal funds that have specific guidelines and limitations on the expenditure of these funds. Local school public funds are also included in this group.

Special Revenue Fund $ 2,837,930* SPECIAL REVENUE FUNDS PROPOSED BUDGETED REVENUES & OTHER FUND SOURCES FY 2019 (October 8th Hearing) Special Revenue Fund $ 2,837,930* State $ 0 Federal $ 2,349,382* Local $ 236,547 Other Revenues & Fund Sources $ 252,001 Special revenue funds included in the budget are comprised of federal funds that have specific guidelines and limitations on the expenditure of these funds. Local school public funds are also included in this group.

Barbour County School District Proposed Schedule of Federal Revenues – Special Revenue Funds For the Year Ending September 30,2019

PROPOSED TOTAL FUND EQUITY SPECIAL REVENUE FUND FY 2019 Total Revenues & Other Fund Sources $2,837,930* Total Expenditures & Other Fund Uses $2,989,067* Excess of Revenues Over (Under) Expenditures $(151,137) Fund Balance Beginning of the Year $456,461 Fund Balance - End of the Year $305,324* *Includes CNP and Local School Funds (LSA)

PROPOSED TOTAL FUND EQUITY CAPITAL PROJECTS FUND FY 2019 Total Revenues & Other Fund Sources $ 369,924 Total Expenditures & Other Fund Uses $703,951 Excess of Revenues Over (Under) Expenditures $(334,027) Fund Balance Beginning of the Year $ 403,837 Fund Balance at the end of the Year $ 69,810 *No changes

PROPOSED TOTAL FY 2019 Allocations Revenue Source Descriptions and Amounts Compared to FY2018

Budget Challenges A continuous loss of student enrollment will have a negative effect on the financial stability of the District Current funding is not adequate to meet the demands ((i.e. Updated Technology in the classrooms, Building Improvements, Deferred Maint., Maintenance of Bus Fleet, etc….) There is a need to increase efficiency in our use of technology that is available to us. The cost of goods and services are increasing at a higher rate than our revenues. We will have to continue to seek more options to increase our local revenue We will have to monitor the budget very closely in 2019 in order to find areas in which we will be able to cut expenditures with minimum impact on our students.

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