County schools to reach 1 month operating reserve in 2013

Discussion

July 22, 2012

County schools to reach 1 month operating reserve in 2013

1st time in 3 years CCBOE will have state-required surplus

By Trent Moore The Cullman Times The Cullman Times Sun Jul 22, 2012, 12:40 PM CDT

It’s been more than three years since the Cullman County Board of Education has had a one-month fund reserve, which is mandated by the State of Alabama. But, all that should change next year — thanks in large part to a new, county-wide half-cent sales tax.

Initial projections for the 2012-2013 budget were released this week, and officials anticipate the fund reserve to surpass one month’s operating expenses, finally putting the system in compliance with the state benchmark.

“We will have a 35 day reserve,” county schools finance officer Randy Dunlap said. “For the first time in three years, we won’t have to submit a plan to the state for how we plan to get to that level.”

With the economy down, and the state education budget slashed in recent years, Cullman County was among several systems statewide that fell below the one-month threshold. Superintendent Billy Coleman said he doesn’t want it to ever reach that point again.

“The Cullman County school system will never face what we’ve faced the past few years,” he said.

For fiscal year 2013, the board is projecting $66.6 million in expenses, and $67.1 in revenue —with more than $447,000 left in excess revenue, which should only add to the reserve.

“I’m very happy to say that,” Dunlap said. “Our revenue is above expenditures.”

The addition of half-cent sales tax revenue, approved by a referendum vote in March, is the catalyst that should put next year’s budget in the black. Officials have budgeted $2.8 million in new revenue, though that number could rise to $3 million if the economy remains stable.

As was promised during the campaign, officials say they plan to divide that revenue with 60 percent for instruction; 20 percent for maintenance and 20 percent for local school use. The board plans to release a full breakdown of the proposed half-cent revenue budget next month.

Though the detailed budget is still in the works, Dunlap said areas such as technology improvements will be among those addressed.

“One thing we want to do is expand technology, because we have a lot of pressure to add wireless to our schools,” he said.

Looking further down the line, Coleman said he believes there is one issue in the offing that could have an even larger impact than the recent half-cent sales tax vote: Section 16 land.

After a year of campaigning and lobbying legislators to allow a referendum, Cullman County residents will vote in November to decide if the county school system should be allowed to control a large piece of property on Smith Lake that was set aside decades ago for educational use. The property has most recently been controlled by the state, though Coleman argues that with local control, the property could be a financial asset that could provide money for decades.

“That’s a huge vote, and a lot of important people told us it couldn’t be done — but in November, Cullman County will vote to give the school board control of that,” he said. “Ten or 15 years from now, the financial impact from the Section 16 land could surpass the impact of the half-cent sales tax.”

The next budget hearing is set for Tuesday, August 14 at 6:30 p.m. at the central office board room.

* Trent Moore can be reached by e-mail at trentm@cullmantimes.com, or by telephone at 734-2131, ext. 220.

Text Only

Top News

Search Results

Discussion

County schools to reach 1 month operating reserve in 2013

1st time in 3 years CCBOE will have state-required surplus

Site Map

Contact Us