2014 - 2015 Proposed Budget Message (June)
Enclosed please find the third and final draft of the 2014/2015 budget. You will notice the ending balance reflects a deficit of ($1,424,741). This is less than the previous draft reviewed by the board. The revised deficit anticipates collecting slightly less property tax revenue and the same amount of state aid compared to the actual collection rate in 2013-2014. As with the past two budget cycles, the fifth year within the funding cycle is anticipated to be a deficit spending year.
Modifications to revenues and expenses were made in this draft based upon actual revenues and expenses made in the 2013-2014 budget.
Please note the following assumptions:
- As indicated above, a 0.00% revenue growth is projected for property taxes with a 97% collection rate;
- Projected a drop in FDK tuition by an additional $100,000;
- Transfer Student Tuition will remain at an estimated $7,000 per student and our number of VICC students will decline;
- State foundation formula reflects collections equal to the 2013-14 funding;
Total Operating Revenues are anticipated to be $55,640,682. This is a decline of (-0.29%) compared to the current 2013-2014 school year operating revenue.
- The budget reflects an overall salary and benefits increase of 2% for each employee category including teachers. After considering retirement/resignation replacements and channel changes the total cost to the budget is estimated to be 3%. The district anticipates hiring up to 5 additional teachers due to enrollment increases;
- Health insurance rate increase is estimated to be 6%. We will continue with the CSD Trust self-funded health insurance program. Line item 43 was increased an additional $168,000 to provide medical and dental health insurance coverage for aides and every-day substitutes;
- A 5% increase is projected for utility costs;
- Instructional Supply line item was increased by $50,000 for consultant services for strategic planning;
- This draft budget anticipates a 3% increase in property insurance rates;
- The district will continue to withhold 10% of all building and departmental budgets.
Total Operating Expenditures are anticipated to be $57,065,423. This is an overall increase of 3.10% compared to the 2013-2014 operating expenditures.
This budget reflects an ending deficit of ($1,424,741).
If you have any questions, please do not hesitate to contact me.