The economic downturn and escalating fuel costs will be on the radar screen of Fayette County Board of Education members as they discuss the 2008-2009 budget at the May 21 meeting and at a budget workshop in early June. The budget will be adopted prior to July 1.

The millage rate imposed by the school board currently sits at 18.596 mills. The allowable maximum set by state law is 20 mills.

The board anticipates 2.61 percent growth in the county tax digest. Comptroller Laura Brock told board members one mill currently generates a little over $4.7 million, with revenue at the current rate totaling $87.55 million.

There is plenty at stake as budget considerations unfold in the coming weeks. The school system may see an increase in Quality Based Education (QBE) earnings of as much as $2.019 million, though the actual amount is currently unknown.

But offsetting that increase are state-required pay and benefit hikes totaling $2.9 million for general fund employees such as teachers and bus drivers, along with similar increases for positions not required by the state that would total another $925,000.

And then there are considerations over issues that require a crystal ball. Rising fuel costs in the current budget year are far exceeding the budgeted amount. Brock said the 2008 budget, running from July 2007 through June 2008, had $720,000 allotted for fuel.

Rising costs will likely result in costs of $1 million, she said, adding that fuel prices might make the figure as high as $1.2 million in the 2008-2009 budget.

Information reported by Brock noted some of the issues board members will be facing in upcoming budget talks. She suggested a number of potential central office cost-cutting measures as well as considerations on areas to reduce cost or generating additional revenues.

Brock referenced eight areas that might be implemented at the school system’s central office.

Among those were leaving vacancies for selected positions in the Finance Department unfilled until January 2009, reducing travel and eliminating out-of-state travel, reducing overtime, reducing the amount of paper and copying costs with the implementation of the eBoard (on-line) system, and reassigning exceptional children county office staff as vacancies at the school level come open.

Other possible central office cost-cutting measures included reducing discretionary duty leave, limiting the number of buses used for athletic events and consolidating bus routes as necessary after the first three weeks of school.

The school system does not currently require a cost participation for bus transport to athletic events due to increases in the gate cost for those events, Superintendent John DeCotis said.

Though the discussion May 7 involved only possible areas to institute budget cuts, it was noted that approximately 7 percent of the school system’s fuel costs are expended on athletic events and field trips.

A possible one-time revenue generator would be the sale of school property that is no longer needed or wetlands mitigation credits.

Depending on the offers, said DeCotis, the board could opt to sell 30 acres it owns on Inman Road or the soon-to-be-vacant East Fayette Elementary property.

Also up for consideration are the wetland mitigation funds on property at the Goza Road complex in south Fayette. The school system is currently exploring potential takers interested in purchasing the credits.

The bottom line, said DeCotis, is that the board is deciding how much it can cut from the 2008-2009 budget to offset increasing costs.

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