The Jackson County Board of Education ended its most recent fiscal year $908,600 in the red, and now has to create a plan for the state showing how it will eliminate the deficit.
The BOE approved a plan Monday at its meeting on the deficit, which hit the books June 30 at the end of the school system’s fiscal year.
State law requires that school systems that end the fiscal year with a deficit submit a deficit elimination plan to reduce its deficit by the equivalent of 1.5 tax mills.
For the Jackson County School System, that means outlining a four-year deficit elimination plan that will meet state law. By June 30, 2013, the district anticipates having a general fund reserve of $2.7 million.
Jeff Sanchez, assistant superintendent of finance and information services for the county school system, expects two key avenues to make that surplus a reality — decreasing expenses and increasing revenue.
There are no plans to increase the M&O (maintenance and operation) millage rate, which remains at 18.95 mills, he said.
The Jackson County BOE adopted a FY 2010 budget last month that featured a number of personnel expense cuts, including a hiring freeze for non-required positions, minimum wage for replacement classified employees (except bus drivers) and trimming days for paraprofessionals.
BOE in a financial hole
The school system is also using a “points system” to closely review staff needs and maximize funding for each school. That system is expected to determine which positions to reduce in the proposed FY 2011 budget.
As for revenue, Sanchez said he hopes that income from the state and the tax collection rate will improve as the economy rebounds.
Even if state revenue for schools dips — as is largely expected — the Jackson County BOE can amend its deficit elimination plan, Sanchez said.
This is the first deficit elimination plan for the Jackson County School System since he started working for the district in 1982, Sanchez said. The school system also encountered a deficit around 1986-1987, when it was making improvements to the Gordon Street Center and didn’t properly account for local funds to match state money in the project.
School leaders have said that building three large new schools since 2007 — East Jackson Comprehensive High School, Kings Bridge Middle School and Gum Springs Elementary School — led to a major reduction in the district’s reserve fund. The projects also followed major drops in state and local revenue with the slumping economy.
As for revenue, Sanchez said he hopes that income from the state and the tax collection rate will improve as the economy rebounds.
Even if state revenue for schools dips — as is largely expected — the Jackson County BOE can amend its deficit elimination plan, Sanchez said.
This is the first deficit elimination plan for the Jackson County School System since he started working for the district in 1982, Sanchez said. The school system also encountered a deficit around 1986-1987, when it was making improvements to the Gordon Street Center and didn’t properly account for local funds to match state money in the project.
School leaders have said that building three large new schools since 2007 — East Jackson Comprehensive High School, Kings Bridge Middle School and Gum Springs Elementary School — led to a major reduction in the district’s reserve fund. The projects also followed major drops in state and local revenue with the slumping economy.
"Decrease expenses and increase revenue" - doesn't sound like a joke to me! That's what MOST americans have to do every week with their own HARD EARNED money. Amazing how government agencies can never seem to wrap their budgets around that concept. SPEND SPEND SPEND - we'll get more from the taxpayers is the moto. Key words in the above quote are"INCREASE REVENUE" (i.e. raise millage rates)!!!
Hang onto your wallets folks...if you have anything left to hang on to!!!!