boone county board of education fy17 budget analysis & explanations
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7/25/2019 Boone County Board of Education FY17 Budget Analysis & Explanations
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Boone County Board of Education FY17 Budget Analysis & Explanations
Item Description
Original FY17
Budget Change
Revised FY17
Budget Explanation
Fuel - Diesel 250,000 30,000 280,000 FY15 actual expenditures were $346,516 and YTD April
2016 expenditures (including encumbrances) totaled
$350,034. Per information provided by the county CSBO,the YTD FY16 expenditures as of June 17, 2016 were
$252,646. Not all invoices for FY16 would have been
received and included in the June 17, 2016 amount.
Further, fuel prices are starting to rise from the extremely
low prices earlier in FY16 and there are no known
significant changes in bus routing for FY17. In response
to WVDE's inquiry, Boone County proposed a more
reasonable amount of $280,000.
Fuel - Gasoline 32,700 10,300 43,000 FY15 actual expenditures were $59,245 and YTD April 2016
expenditures (including encumbrances) totaled $48,858.
Per information provided by the county CSBO, the YTD
FY16 expenditures as of June 17, 2016 were $39,292. Not
all invoices for FY16 would have been received and
included in the June 17, 2016 amount. Further, fuel prices
are starting to rise from the extremely low prices earlier in
FY16 and there are no known significant transportation
changes for FY17. In response to WVDE's inquiry, Boone
County proposed a more reasonable amount of $43,000.
Oil/Lubricants 6,000 4,000 10,000 FY15 actual expenditures were $18,951 and YTD April 2016
expenditures (including encumbrances) totaled $28,322.
Per information provided by the county CSBO, the YTD
FY16 expenditures as of June 17, 2016 were $7,323. Notall invoices for FY16 would have been received and
included in the June 17, 2016 amount. In response to
WVDE's inquiry, Boone County proposed a more
reasonable amount of $10,000.
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Boone County Board of Education FY17 Budget Analysis & Explanations
Item Description
Original FY17
Budget Change
Revised FY17
Budget Explanation
Other Professional Salaries 75,268 4,732 80,000 FY15 actual expenditures were $255,905 and YTD April
2016 expenditures (including encumbrances) totaled
$202,589. Per information provided by the county CSBO,the YTD FY16 expenditures as of June 17, 2016 were
$153,639. In response to WVDE's inquiry, Boone County
proposed an increase of $4,732 to a total of $80,000 for
FY17. They also indicated that the significant reductions
from FY15 and FY16 were due to the reduction in extra
salaries for computer support at the schools and the
elimination of other extra pay. Boone County indicated
that the revised amount of $80,000 should be sufficient
for operations in FY17.
Service Personnel Salaries 5,960,265 68,960 6,029,225 Based on the number of known service personnel
reductions made during personnel season, WVDE
estimated service personnel regular salary costs of
$6,097,644. The county had only budgeted $5,960,265,
for a difference of $137,379. The county reviewed the
amount budgeted and indicated that an additional
$68,960 was needed to cover service personnel salaries
for FY17. While still less than the initial WVDE projection,
this amount seems reasonable given the additional review
performed by Boone County of this line item.
Service Personnel Substitute Costs 360,188 40,000 400,188 FY15 actual expenditures were $559,764 and YTD April
2016 expenditures (including encumbrances) totaled
$505,769. The FY17 budgeted amount of $360,188 wassignificantly less than the historical data. Boone County
revisited this line item and proposed an increase of
$40,000 to bring the total budgeted to $400,188. They
indicated that substitutes will not be utilized for certain
service personnel vacancies during the 2016-17 school
year in order to allow them to achieve the significant
savings from recent years.
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Boone County Board of Education FY17 Budget Analysis & Explanations
Item Description
Original FY17
Budget Change
Revised FY17
Budget Explanation
PEIA 3,359,859 410,246 3,770,105 The amount budgeted for PEIA expenditures was
compared to the state aid allocation for PEIA for state aid
eligible employees. The budgeted expenditure amountwas only $3,359,859 but the revenue was $3,770,105, a
deficiency of at least $410,246. The state aid allocation
for PEIA was calculated by WVDE and is based on actual
employee premiums during the current year, as adjusted
for the known 14.5% employer premium increases for the
2016-17 year. The state aid PEIA allocation never exceeds
the actual expenditures incurred by a county board of
education because county boards of education must fund
their share of the PEIA premiums for employees paid with
local funds. In reality, the budgeted expenditures should
be higher than the associated revenue, but Boone County
proposed to make the two amounts equal in anticipation
that the FY17 PEIA state aid allocation amount will be
adjusted to a lower amount once the FY17 certified list of
personnel is complete. Because the state aid is
recalculated annually, WVDE accepted the revised Boone
County increase of $410,246.
Workers' Compensation 285,749 152,084 437,833 The FY15 actual Workers Compensation expenditures
were $353,905. After adjusting that amount for an
estimated 12% reduction in total personnel for FY17,
WVDE projected Workers Compensation expenditures of
at least $311,436 for FY17, a difference of $25,687.However, per the CSBO, the actual low bid for Workers
Compensation insurance for FY17 was $437,833. The
county therefore needed to increase the amount
budgeted by $152,084 in order to cover their known cost
for FY17.
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7/25/2019 Boone County Board of Education FY17 Budget Analysis & Explanations
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Boone County Board of Education FY17 Budget Analysis & Explanations
Item Description
Original FY17
Budget Change
Revised FY17
Budget Explanation
Retirement 1,886,003 150,046 2,036,049 Based on the actual retirement expenditures for FY15
($2,313,692) and an estimated reduction of 12% for the
reduction in personnel for FY17, WVDE projected aretirement expenditure amount of approximately
$2,036,049. The county had only budgeted $1,886,003, a
difference of $150,046. The county proposed to increase
the amount budgeted for retirement to the amount of the
WVDE estimate.
Unemployment Compensation 40,000 160,000 200,000 The county budgeted only $40,000 for unemployment
compensation insurance. County boards of education are
self-insured for unemployment, meaning that Boone
County will receive a bill for all unemployment
compensation claims during FY17. WVDE had concerns
this amount was insufficient to cover the potential
unemployment compensation claims given the significant
number of positions that were eliminated for the 2016-17
year during personnel season. While this is very difficult
to predict, based on the fact that some of the 77
individuals who lost their jobs for FY17 have already
secured employment in other counties, WVDE felt that
Boone County's revised unemployment compensation
budget of $200,000 should be sufficient to cover the
actual claims they incur during the 2016-17 year.
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Boone County Board of Education FY17 Budget Analysis & Explanations
Item Description
Original FY17
Budget Change
Revised FY17
Budget Explanation
Other Professional Services 442,000 158,000 600,000 The county budgeted $442,000 for other professional
services for the 2016-17 school year. The actual
expenditures for FY15 were $582,801 and the YTD April2016 (including encumbrances) totaled $807,035. Per the
explanation provided by the county, FY16 actual
expenditures included some significant legal fees for a
personnel issue and a special education student issue.
This line item also included the cost for resource officers in
the school. Because these costs are not projected to
continue, the county had significantly reduced the
budgeted amount down to $442,000. However, given the
likelihood of additional employee grievances during the
2016-17 year, Boone County proposed increasing this line
item by $158,000 up to $600,0000. This revised amount
appeared reasonable.
Rent 47,000 23,000 70,000 FY15 actual expenditures were $152,384 and YTD April
2016 expenditures (including encumbrances) totaled
$110,944. Per the explanation provided by the CSBO,
several of the historical rental items were eliminated for
the 2016-17 year. The strings music program was
eliminated so the rental of instruments is no longer
required, the schools will pay for golf course rentals
directly, and a modular building was removed. The county
proposed increasing this line item by $23,000 up to
$70,000 to ensure that the amounts budgeted were
reasonable given the anticipated rental costs that will
continue into FY17.
Flood Insurance - 90,000 90,000 The FY15 actual expenditure for flood insurance was
$89,419 but no flood insurance was budgeted for FY17.
Per the CSBO, this was an oversight when preparing the
FY17 budget and must be added.
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Boone County Board of Education FY17 Budget Analysis & Explanations
Item Description
Original FY17
Budget Change
Revised FY17
Budget Explanation
Legal Advertising 2,000 3,000 5,000 FY15 actual expenditures were $5,022 and YTD April 2016
expenditures (including encumbrances) totaled $3,021.
The county only budgeted $2,000 for FY17, but there wereno known reductions in the number of legal
advertisements that must be placed during the fiscal year.
Therefore, Boone County proposed an increase to this line
item in the amount of $3,000 to bring the total budgeted
to $5,000.
Services Purchased for Another District/RESA 304,800 (34,800) 270,000 The county budgeted $304,800 for purchased services
from another district or RESA for FY17. The FY15 actual
expenditures were $238,594 but the YTD April 2016
(including encumbrances) amount was $431,113. Per the
CSBO, the actual amount for FY16 will be $314,798 after
open encumbrances are closed, so the county originally
requested to add $15,200 to bring the budgeted amount
to $320,000 to be in line with the expenditures for FY17.
However, at the meeting on June 24, 2016, the county
proposed eliminating a computer technician position paid
through the RESA which would generate savings of
$50,000. The net reduction to the original budget was
$34,800 for a final proposed budget amount of $270,000.
School Board Association Dues - 3,644 3,644 No amounts were budgeted for School Board Association
Dues. Because the Boone County Board of Education
intends to remain members, such dues would be requiredduring the 2016-17 school year. The actual amount
expended during FY15 was $3,644, which is the amount
the CSBO indicated would need to be added to the 2016-
17 budget.
Fire Service Fees - 700 700 No amounts were budgeted for Fire Service Fees for the
2016-17 school year. Such amounts are required by local
fire departments and are necessary expenditures during
the 2016-17 school year. The actual amount expended
during FY15 was $625 and the county proposed to budget
$700 for FY17.
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7/25/2019 Boone County Board of Education FY17 Budget Analysis & Explanations
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Boone County Board of Education FY17 Budget Analysis & Explanations
Item Description
Original FY17
Budget Change
Revised FY17
Budget Explanation
Natural Gas 35,000 1,000 36,000 FY15 actual expenditures were $64,616 and YTD April 2016
expenditures (including encumbrances) totaled $48,000.
Per information provided by the county CSBO, the YTDFY16 expenditures as of June 17, 2016 were $36,114.
Based on the actual FY16 expenditures to date (which are
likely low due to not all bills being received yet) and the
fact that only one of the three schools being closed had
Natural Gas expenditures during the year (Nellis
Elementary School) totaling approximately $1,400, the
county proposed to increase the original budget of
$35,000 by $1,000 to $36,000.
Food Service Transfer to Fund 61 759,878 180,541 940,419 The actual food service transfer for FY15 was $1,663,468
and the amount budgeted for FY16 is $1,224,337. The
county only budgeted $759,878 for the child nutrition
transfer for FY17 under the assumption that the county
would be able to significantly reduce costs associated with
the child nutrition program. Based on an analysis
performed by the WVDE Office of Child Nutrition,
assuming no change in program participation rates for
FY17, the estimated child nutrition transfer must be at
least $898,613. However, due to the decline in student
enrollment, it is more likely that program participation will
decline in FY17 which will result in an increase in the
required sponsor contribution. Assuming a 5% decline in
student enrollment, the estimated sponsor contribution
would need to be $944,270, which is close to the revised
budget amount of $940,419.
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Boone County Board of Education FY17 Budget Analysis & Explanations
Item Description
Original FY17
Budget Change
Revised FY17
Budget Explanation
Water/Sewage 196,000 (13,000) 183,000 FY15 actual expenditures were $176,929 and YTD April
2016 expenditures (including encumbrances) totaled
$191,358. The county originally budgeted $196,000 forwater/sewage which exceeds the historical amounts
despite the fact that 3 schools are being closed for FY17
which should result in some savings. Per information
provided by the county CSBO, the YTD FY16 expenditures
as of June 17, 2016 were $183,135 so the county proposed
changing the budget for FY17 to $183,000. WVDE
inquired about the amount of water/sewage expense at
the three schools being closed, which was approximately
$22,000 in FY15. I f you subtract that amount from the
FY15 actual expenditures, the estimated utility costs would
be $174,000; however, the water/sewage bills are
expected to increase at the schools which are receiving
the students from the schools that are being closed due toincreased usage. Therefore, the revised amount
proposed by the CSBO of $183,000 appeared reasonable.
Garbage 80,382 (5,382) 75,000 FY15 actual expenditures were $80,329 and YTD April 2016
expenditures (including encumbrances) totaled $93,291.
The county originally budgeted $80,382 for Garbage which
was close to the FY15 actual expenditures despite the fact
that 3 schools are being closed for FY17 which should
result in some savings. Per information provided by the
county CSBO, the YTD FY16 expenditures as of June 17,2016 were $75,314 so the county proposed changing the
budget for FY17 to $75,000. WVDE inquired about the
amount of Garbage expense at the three schools being
closed, which was approximately $6,400 in FY15. If you
subtract that amount from the FY15 actual expenditures,
the estimated Garbage costs would be $75,929; therefore
the revised amount of $75,000 proposed by the county
appeared reasonable.
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Boone County Board of Education FY17 Budget Analysis & Explanations
Item Description
Original FY17
Budget Change
Revised FY17
Budget Explanation
Liability Insurance 200,000 (27,596) 172,404 The county budgeted $200,000 for Liability Insurance for
FY17, but FY15 actual was only $151,673 and the YTD April
2016 expenditures (including encumbrances) was only$129,426. The CSBO initially wanted to revise the amount
to $130,000 based on the FY16 actual expenditures but
subsequently received an invoice from BRIM for the first
quarter of FY17 in the amount of $43,101. That amount
annualized is $172,404 which is the revised amount
needed in the budget to reflect actual known costs for
FY17.
Data Communication Services 262,317 (52,317) 210,000 The county originally proposed a budget of $262,317 for
Data Communication Services but upon request of the
Office of School Finance to confirm that the budgeted
amount for Telephone & Voice Communication Services
was correct, the county reviewed their proposed budgetand proposed reducing the amount by $52,317. The
combination of the two categories of expenditures is
approximately $129,878 less than FY15 expenditures and
$26,186 less than YTD April 2016 expenditures. The
proposed reduced amounts are likely sufficient to meet
the needs of the county during FY17 given the closure of
three schools.
Custodial Supplies 105,000 (29,000) 76,000 The county budgeted $105,000 for custodial supplies for
FY17. FY15 actual expenditures were $133,281 and YTD
April 2016 expenditures (including encumbrances) totaled
only $77,036. The amount budgeted seemed excessivegiven the reduced expenditure level in FY16 and the fact
that 3 schools are being closed in FY17. After additional
analysis, the CSBO proposed reducing the proposed
budget for custodial supplies to $76,000 which appeared
reasonable.
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Boone County Board of Education FY17 Budget Analysis & Explanations
Item Description
Original FY17
Budget Change
Revised FY17
Budget Explanation
Electricity 1,204,419 (204,419) 1,000,000 FY15 actual expenditures were $1,044,913 and YTD April
2016 expenditures (including encumbrances) totaled
$936,158. The county originally budgeted $1,204,419 forelectricity which exceeds the historical amounts despite
the fact that 3 schools are being closed for FY17 which
should result in some savings. Per information provided
by the county CSBO, the YTD FY16 expenditures as of June
17, 2016 were $980,623 but that amount would not
include all of the invoices for the year. During FY15, the
county indicated that the three schools which are closing
had combined electricity expenses of approximately
$120,000. Total FY15 expenditures less the amounts for
the three closing schools equals approximately $925,000.
The county is now proposing to budget $1,000,000 for
FY17 to provide for continued minimal electrical expenses
at the closed schools (one of which will serve as awarehouse) and the possibility of a harsh winter.
Textbooks 368,937 (168,937) 200,000 The county had originally budgeted $368,937 in textbook
expenditures for FY17 but proposed to reduce that
amount to only $200,000. While the county initially
planned to adopt new science textbooks during FY17, that
textbook adoption is not required since other resources
may be used to ensure the appropriate content standards
are taught to all students. The county's excess levy
contains a line for textbooks which is projected to bring in
$142,254 in levy proceeds for FY17.
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Boone County Board of Education FY17 Budget Analysis & Explanations
Item Description
Original FY17
Budget Change
Revised FY17
Budget Explanation
Technology Supplies - Student Hardware 150,000 (150,000) - The county had originally proposed a budget of $150,000
for technology supplies - student hardware. Upon inquiry
of whether the county could live within the Step 7b and
Tools for Schools Technology allocations for FY17, the
county initially proposed to reduce the amount by $15,000
to $135,000. Upon further discussion and consideration of
the financial difficulties being faced by the county, the
county agreed to eliminate this expense completely from
the FY17 general fund budget and to rely on the state
funding to meet all technology needs during FY17. While
there is a provision in the excess levy for technology
related items, the levy also contains language about the
using the funds for the general operation of the school
system if sufficient state, federal or other special funds
become available to provide monies for the purposes
stated in the levy.
Dental & Vision 465,000 (412,069) 52,931 The county originally proposed a budget of only $465,000
for vision and dental expenses for their employer paid
plan. However, the actual FY15 expenditures were
$880,256. Adjusting for a reduction in staffing of
approximately 12%, WVDE expected vision and dental
benefits of $774,625 to cover the benefits for employees
during FY17. Initially, the county proposed adding the
$309,625 necessary to cover the full projected
expenditure for FY17. If the county does not eliminatevision and dental benefits as directed, such an increase in
the amounts budgeted for vision and dental would be
required to fulfill the obligations of the county for FY17. If
the county follows the directive, the county would be able
to reduce the $465,000 in the proposed budget by
$412,069 down to the $52,931 required for retiree vision
and dental benefits included in the county's excess levy
call.
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Boone County Board of Education FY17 Budget Analysis & Explanations
Item Description
Original FY17
Budget Change
Revised FY17
Budget Explanation
Various Line Items Moved to Fund 61 for Step 7 Plan Revisions 445,000 (445,000) - During discussions with central office personnel on Friday,
June 24, 2016, the central office staff indicated that in light
of the decision to no longer adopt new science textbooks
during FY17 and their further review of the Step 7a plan
submitted to WVDE, the county could move $445,000 of
educational supplies and other operational costs to be
paid through Step 7a funds. In deficit situations, the State
Superintendent has previously allowed county boards of
education to utilize a certain amount of Step 7a funding
for operational expenses and the general changes
proposed by the central office staff would have been
allowable based on prior precedent. While the specific
line items from the general fund were not identified
during the meeting, WVDE agree to allow Boone County
Board of Education to resubmit their Step 7a plan to help
alleviate some of the strain on the general fund budget.
Prof . & Serv ice Salaries & Fringe Benefits - County Salary Supplement Reduction 4,082,827 (2,633,203) 1,449,624 Based on the original staffing levels included in the FY17
budget at the full county supplement amounts currently
being paid by Boone County Schools, the county
supplement is projected to cost $4,082,827. The line item
in the excess levy call that specifically mentions county
salary supplements is only projected to bring in $1,139,684
during FY17. The estimated savings from reducing the
salary supplements down to the 1984 amounts is
$2,633,203, leaving an estimated cost of $1,449,624 to payfor the salary supplements. If the county were to reduce
additional staff for FY17, the cost would be reduced
further. Note that the remaining cost for the salary
supplement still exceeds the amount being brought in by
the excess levy for FY17, but reducing the county salary
supplement any further would have required the State to
provide additional state equity funding. Since such funds
were not appropriated by the Legislature, the salary
supplement could not be reduced further.
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Boone County Board of Education FY17 Budget Analysis & Explanations
Item Description
Original FY17
Budget Change
Revised FY17
Budget Explanation
Prof. & Service Salaries & Fringe Benefits - Additional RIFs TBD* The estimated cost for the 48.11 positions being paid from
local funds for FY17 is $2,516,178. The county is projected
to be 13.44 professional personnel over formula, including
8 professional personnel that are employed in positions
that are not eligible for state aid, and be 27.401 service
personnel over formula for FY17. Certain positions will be
unable to be eliminated due to being required by statute
(ex: Treasurer), IEPs, etc.
Prof. & Service Salaries & Fringe Benefits - Reduction of Extended Contract Terms TBD* The Boone County Board of Education made some
reductions to extended day contracts for professional
personnel during personnel season but there are still
remaining extended day contracts that are paid with local
funds. Service personnel extended contracts are eligible
for state aid funding since the extended FTE is utilized to
calculate the number of personnel funded. The maximumestimated amount of salary savings if all extended service
contract days were eliminated is approximately $448,000.
The full amount would likely be unable to be achieved
since certain work must take place over the summer
months. Note that the maximum savings of $448,000 is
included in the estimated cost for positions being paid
from local funds above.
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Boone County Board of Education FY17 Budget Analysis & Explanations
Item Description
Original FY17
Budget Change
Revised FY17
Budget Explanation
Medicaid Revenue 861,850 400,000 461,850 The county budgeted $861,850 for Medicaid revenue for
the 2016-17 school year. That amount is higher than
expected in light of current statewide trends in Medicaid
collections. FY16 Medicaid revenues statewide are
roughly 33% of the amount collected through the same
period the previous year. WVDE recommended a cut of
at least $400,000 to bring the estimated revenues for FY17
more in line with the statewide trends but that amount
stay may end up being too high. Boone County Schools
bills Medicaid one year behind the date of service, so their
actual collections during FY16 are not indicative of the
amounts that will be collected during FY17. The actual
experience from other county boards during FY16 (who
are not on a one-year lag in billing) is a more relevant
indicator of expectations for FY17.
E-Rate Revenue - (220,000) 220,000 During the meeting on June 24, 2016 with central office
staff, the county notified WVDE of their failure to include E-
Rate revenue in the FY17 budget. Based on the
information provided by the county regarding E-Rate
reimbursement rates, that missing revenue was projected
to be approximately $220,000 assuming that the budgeted
expenditure levels are achieved. WVDE agreed to allow
the county to correct this error and include the missing
revenue in the FY17 budget.
Total Overall Increase (Decrease) to the 2016-17 Budget (2,505,470)
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