By PAT NEWMAN
pnewman@TheCitizenNews.com

Drafting a budget for a burgeoning school system is a challenge in itself.

Toss in an ever-changing formula and a handful of funding changes and you have a financial puzzle. Jim Stephens, finance director for the Fayette County School System, briefed the school board on the progress to date on the district's fiscal year 2001 budget Monday night.

“I think we should wind up with about $67.5 million, based on the QBE (Quality Based Education) formula,” Stephens said. “This year, we should see a $3 million increase in state funding.”

Stephens is currently collecting data from the numerous school district departments and working with this year's school population figures.

“There is a lot of movement in the formula,” he said, referring to the state allocation formula. He explained that funds are being switched around from one area to another; from middle schools, for example, to high schools. He expects Fayette County's fair share contribution to the state for aiding less affluent counties to be about $1.5 million.

Stephens predicted $3 million in growth from local funds and about $6.1 million in new revenue based on Fayette County's 6 percent digest growth. The board will meet for a work session April 10 to tackle the first phase of the budgeting process, reviewing input from staff and schools.

Teachers will receive a 3 percent pay raise from the state and are requesting an increase in the local supplement as well. “It's been a number of years since the local supplement has increased,” Judy Byrd, human resources director for the school district, told the board. She also asked for a cost of living raise for classified employees. Byrd estimated these two recommendations would cost about $287,811.

Stephens also warned the board to expect a substantial increase in the cost of providing state health benefits, about $2 million more.

“By mid-April we should have the final funding documentation from the state,” Stephens said. “We're looking at a zero-based budget.”

Budgets from the schools are due March 25, and the board will meet for a budget workshop April 10. The regular board meeting will be April 17 and May 1, there will be a second budget workshop. The board will hold its regular May meeting on the 15. A final budget work session will be held on June 5 with budget finalization set for the June 19 board meeting.