THE HUNTER REPORT
BOE TO VOTE
FY 13-14 BUDGET $1MILLION DEFICIT
By: PAT HUNTER
Did you know that the Loudon County Board of Education (BOE) plans to vote on the proposed FY 13-14 Budget ($1,007,628.00 LOSS) at Thursday's May 9th 7:00 pm board meeting?
Months ago, board Chairman Bobby Johnson Jr. named a budget committee comprised of Chairman Scott Newman, Leroy Tate and Ric Best but the three didn't bother to meet or work (publicly) on the school budget. However, on April 30, 2013 the budget committee met to discuss and approve the proposed FY 13-14 budget, which was prepared by director Vance and staff. During the 2 hour meeting, Director Vance presented his wish list DRAFT FY 13-14 BUDGET ($678,780.00 Loss). Board member Leroy Tate was concerned about taking the budget deficit from the school's fund balance, which he felt would eventually lead to a property tax increase in the second or third year. But then Vice-Chairman Leroy Tate turned around and voted for the deficit budget. Go figure!
Director Vance also spoke about amending the current budget by $350,000 for computers and technology. It appears that money was not budgeted for IT for the two new schools (Ft. Loudoun Middle and Greenback School). Money will have to come from the current FY 12-13 budget (amendment), or the proposed FY 13-14 Budget.
The initial FY 13-14 budget (#1) that was distributed to the budget committee showed $678,780.00 (Loss). However after the budget committee met, the budget increased to $1,007,628.00 (Loss), which was then forwarded to the full board. At the May 2nd BOE workshop, the proposed FY 13-14 Budget was distributed to board members, public and press (News Herald). The Herald has yet to report about the $1 Million budget shortfall.
Most of the budget is earmarked for pay raises; re-occurring expenditures. Here's a brief summary of the budget:
3% increase - Certified teachers - $517,914
2% increase - Non-certified personnel - $52,458
33.3% increase - School Board Member Pay - $100 monthly or $1,200 per board member. Currently, each school Board Member receives $300 monthly, $3,600 yearly however with the new increase it will be $400 monthly or $4,800 yearly. The current budget for the ten member school budget is $36,240 and the proposed overall board member budget is $48,240, an increase of $12,000. Travel is yet another perk that I will write about later.
$7,000 increase - director Jason Vance.
3% increase - administrators and principals.
$3,000 step pay raise - Registered Nurses (RN).
2% increase - Licensed Practical Nurses (LPN).
Contract Services - new bus route $39,763 (Loudon City) plus an additional 2% on seat pay $10,900.
Contract Services include two new schools (GCA janitorial, Cooks, Ground Control) - $115,000.
Textbooks increase from $325,000 to $425,000 ($100,000 Wish List?).
Educational Assistants $50,000 increase from $272,000 to $322,000
Special Education - Speech Pathologists $106,143 increase; from $40,857 to $147,000
Increase in utilities for two new schools - $137,000 (what about the energy savings?)
Increase $50,000 Maintenance Budget. Initial budget $200,000 but changed to $250,000.
SOURCE: FY 13-14 LCBOE Budgets & Retreat Budget Summary.
Loudon County Board of Education - School Board FY 13-14 Budget
CLICK TO VIEW - BOE (MAY 2, 2013) - Full vote by Board on May 9, 2013
FY 13-14 BOE BUDGET * $1,007,628.00 (SHORTFALL)
* Bloated Budget with Wish List
PDF file may take a few minutes to load because of document size.
Budget Committee Meeting - April 30, 2013
CLICK TO VIEW - BOE BUDGET COMMITTEE (APRIL 30, 2013)
FY 13-14 BUDGET - $678,780.00 (SHORTFALL)
PDF file make take a few minutes to load because of file size.
CLICK TO READ - BOE (APRIL 30, 2013) BUDGET COMMITTEE MINUTES pdf file
Where do you think the money will come from to pay for the school board's spending and budget? The majority of school board members appear to favor taking money from the schools Fund Balance this year, but what about next year or the next year. At some point county commission will have to come to you the taxpayers for a property tax increase.
MARCH 8-9 RETREAT
DIPPING INTO FUND BALANCE
The proposed FY 13-14 budget was first discussed at the March 8-9 Gatlinburg Retreat. The board discussed a 2% pay raise for all employees however some board members spoke in favor of a 3% pay raise.
Director Vance informed the board of the school's current fund balance $6,013,395.00. The mindset was to tap into the school's Fund Balance. There was also board discussion about extending director Vance contract for one additional year and paying him $10,000 to $12,000. Subsequently, at the April 11th board meeting, William Jenkins made a motion to approve the director's contract and $7,000 pay raise effective July 1, 2013, and $5,000 in 2014. The motion was seconded by Craig Simon. All Ayes.
(NOTE: Director Vance's current annual salary is $110,000. He resides in Monroe County).