BOE approves FY22 budget
By Christa Jennings
Senior Staff Writer
Following the second budget hearing, at a meeting held last Thursday evening the Board of Education unanimously approved its budget for the 2022 fiscal year, which once again is a deficit budget.
Chief School Financial Officer Amy Davis made the presentation for the final budget hearing. She explained that the budget presented is a deficit budget and that it anticipates a negative ending balance of $158,534.47 in the general fund at the end of the 2022 fiscal year.
Changes made to the budget since the first budget hearing included the general fund, special revenue fund and capital project portions of the proposed budget, originally presented August 26. During the first budget hearing, the proposed budget reflected an unusual positive ending balance for the school system, which was the result of COVID-9 relief funds being reflected in the budget even though the funds would not all be available in the upcoming fiscal year.
Davis further explained during last week’s hearing that funds received for COVID-19 relief, referred to as ESSER II and ESSER III, had to be fully budgeted even though those funds will be expended over a two- and three-year period. That made the budget appear better than it realistically was, since it resulted in more funds being reflected in the budget.
“Indirect cost revenue from these funds has been budgeted to be received by the general fund, but will not all be recognized in the Fiscal Year 2022,” Davis said. “With a recommendation from the State Department of Education, I have offset this indirect cost with an expenditure to show a more realistic ending balance.”
The total budgeted, but not expected to be collected in the 2022 fiscal year, is $200,040.66. That amount is for the COVID-19 relief ESSER II and ESSER III funds.
When working on the budget, Davis used a projected beginning fund balance as of October 1 of negative $242,376.45. That anticipated beginning fund balance, after projected expenditures and revenues for the upcoming year, resulted in the anticipated ending fund balance as of September 30, 2022, of negative $158,534.47.
Changes made to the proposed budget since the August 26 hearing included the following:
- Expenditure for required local vocational maintenance funds in the amount of $2,139.
- An adjusted indirect cost of -$465.95 from changes to Child Nutrition Program.
- Added an expenditure to the general fund for the indirect costs from the ESSER funds that the system is not anticipating collecting in the 2022 fiscal year.
- Added revenue and expenditure in the amount of $600,000 for the renovations to the old high school, with Talladega Clay Randolph Child Care, or TCR Child Care, reimbursing the board for that renovation.
- Added revenue and expenditure for the remaining portion of the HVAC upgrade, which is to be paid from the state bond issue.
- Added revenue for Child Nutrition Program, or CNP, After School Snack Program.
- Added revenue and expenditures for CNP Summer Feeding.
- Transferred $18,786 from ad valorem tax revenue from capital projects to the general fund.
Regarding that transfer of funds, Davis explained that the money was originally budgeted because of a shortfall in their state capital purchase funding to pay their leveraged bond payments. However, she said there will be enough from their local capital purchase required match to make the payment.
Included in the budget is $30,000 for the purchase of a transportation truck, with the transportation supervisor’s current truck being a 2007 model with 210,000 miles on it.
During the presentation Davis said that the supervisor’s old truck would be located at the schools for the custodians to use. She explained that the custodians are currently using a 2000 model truck.
The budget also includes $10,000 for the purchase of eBoard for the school board members.
Following the budget presentation, Board President Tiffany McCain asked for any further public comments or questions, but there were none.
With the budget hearing concluded, the board went on to unanimously approve the 2022 fiscal year budget for the school system.
Regarding personnel matters, during the meeting the board unanimously approved accepting a letter of resignation from Monica Benson, high school paraprofessional, effective September 10; George Gardin as a volunteer football coach with no pay for the 2021-2022 school year; and a Teacher Excellence and Accountability for Mathematics and Science, or TEAMS, contract with Jacques Mitchell, effective August 1, 2021, through July 31, 2022, in accordance with Alabama Act 2021-340.
In other business, the board also unanimously approved the 2021-2022 Code of Conduct for the school system and the 2021-2022 Central High School Student Handbook.
The board held a work session Tuesday morning, September 14, to discuss vacant facilities, the capital plan and a COVID-19 update.
The next regularly scheduled monthly meeting of the Coosa County Board of Education will be held at 5:30 p.m. September 23.