Fayette BoE told system is running ahead of budget
The Fayette County Board of Education at its Feb. 13 meeting heard a report on the current budget outlook presented by Comptroller Laura Brock. The January financial report showed that the school system is projecting a June 30 general fund balance of $13.856 million.
Brock said the school system is currently $4.27 million under budget with seven of the 12 months having been completed. Of that amount, $2.27 million comes from savings in salaries while $1.99 million represents savings in benefits.
In other words, the school system has spent less than it had expected to spend up to this point, which leaves it with more cash in the bank than projected.
The personnel savings come as some staff leave during the year and are not replaced or if a vacant position is filled with a part-time employee rather than one that is full-time.
The budget that began last July 1 had projected revenues of $170.23 million and expenditures totaling $186.66 million, a difference of $16.43 million in expenses greater than revenues. The budget for 2011-2012 was balanced by using a portion of the $26.34 million fund balance from the previous year.
On the revenue side, figures show that the original budget of $89.82 million from local revenue sources is currently projected to total $89.75 million, a difference of $70,475.
And on the other half of the revenue equation, state dollars budgeted at $79.56 million are projected to come in at $79.32 million, a difference of $242,459.
School board members in December approved a 177-day school calendar for the 2012-2013 school year that would bring a cost savings of approximately $3.3 million. Other cost-saving measures, such as a current proposal to reduce the number of employees, is expected to save at least $4 million. Additional measures aimed at cutting costs for next year will likely be presented in future meetings.