Wednesday, March 6, 2002
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Wednesday, March 6, 2002 |
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School board looking at lean budget year By DAVE
HAMRICK Fayette educators are crossing their fingers and hoping for the best as they approach the task of writing the 2003 budget. Things are kind of shaky right now, said Jim Stephens, comptroller for the county Board of Education. "The situation is going to be more difficult than it has been in other years," Stephens told the board during a special called meeting Monday. He also recommended and the board unanimously approved a $2.5 million midyear hike in the 2002 budget, accepting $2.5 million more in state funding and plugging in some reduced revenue and increased expense figures. While the system was expecting about 550 more students this year than enrolled last year, what it got was almost half again as many, 758 new students. State funding for Fayette's schools is being increased partly to help fund the new students, though about $429,000 of the state increase is earmarked for computers funded by the state's education lottery. Refinancing the system's debts to take advantage of current interest rates recently saved the board some money, but on the other side of that ledger, Stephens said this year's revenues will be about $250,000 lighter due to falling interest rates on investments. But the midyear changes are fairly routine, Stephens said. Not so routine will be dealing with next year's budget in light of the faltering economy of the last year and a half, he said. "There is a lot of prospect that growth will not be very great in the state dollars next year," he said. "They may find ways to come up with the money. The economy is better in recent weeks than in the last year and a half." State officials estimate that Fayette will get a $1.7 million increase in Quality Basic Education funding for 2003, Stehens said, but added, "I don't believe that number." "And even if we get it," said schools Superintendent John DeCotis, "we will still be behind the eight ball because of the growth." Stephens said if trends hold, the board's choices will be to reduce funding for teachers and materials, to reduce the system's reserve funds or to increase taxes. At this point, the growth in the local tax digest also is a wild card, said DeCotis. "We've reduced the millage the last couple of years, so there is a vent there if you have to do that," said Stephens. The reserve fund is almost $14 million, but Stephens said that's a good $5 million below what experts recommend. "You ought to be able to go through the year without borrowing," he said, adding that Fayette's system still has to go into debt to weather the lean weeks just before property taxes start to roll in. But if the board feels the situation requires going into the reserve, he is happy that at least the midyear adjustments didn't already erode the fund. "I'm pleased we didn't have to go into the reserve in carrying out the midyear review," he said.
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