2. 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

3. 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.

4. 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

5. 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

6. 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

7. 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 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

8. 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

9. 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

10. 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

11. *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.

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

13. 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”

14. 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.

15. 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 # 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).

16. Required Adjustments per ALSDE cont.
Removed a Salary on Sfund #6001 that was budgeted in error in and Reduction total is $54, 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

17. 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

18. 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, which is a shortfall of $51,425*

19. 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.

20. 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.

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

22. 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)

23. 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

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

25. 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.

26. Questions & Answers