Posted: Thursday, April 26, 2012

School Board Begins Work on 2012-13 General Fund Budget

The School Board began work on the 2012-13 General Fund Budget when Board members received preliminary revenue and expenditure projections from the Administration. Preliminary information indicates a $25 million gap between revenues and expenditures WITHOUT the use of generated savings (Fund Balance in excess of the Board required 8.33%), any local millage increase (businesses, rental property, cars, boats), and/or any reductions.

District Superintendent Burke Royster noted, “For several years we have pursued a strategy of reductions and cost savings resulting in fund balances exceeding the board required 8.33%. Savings have been utilized as a strategy to minimize reductions that directly negatively impact the classroom. This strategy was intended to serve as a bridge to carry us through until the economy recovers. Our cost-saving efforts were never intended as a long-term solution to inadequate funding, and were implemented with the knowledge that at a point in time there would be no fund balance excess available to maintain that bridge. Without significant additional resources, FY13 will be the last year that this strategy will effectively bridge that gap.”

Key Points

  • While Education Finance Act (EFA) funding from the State has increased, the funding is at 2000-01 level.
  • The one-year $4.6 million relief provided by the State to Greenville County Schools as one of the districts negatively affected by a change in their ability to pay under EFA is NOT included in the current House version.
  • The district has exhausted all one-time federal (SFSF) stimulus funds.
  • The value of the implemented cost savings is being eroded by cost increases (utilities, etc.) that exceed the rate of inflation.
  • The value of an operational tax mill is stagnant.
  • The proposed $13.6 million in additional State funding is LESS than the $15.6 million in State-mandated increases.
  • There are $6,359,000 in budgeted costs directly related to student population growth and inflation, including the estimated costs for fuel and utilities.

The following documents are available for review:

First reading of the administration’s proposed 2012-13 General Fund Budget is scheduled for Tuesday, May 15, 9:00 a.m. As required by State law, the superintendent is required to present a balanced budget. A public hearing on the proposed budget will be Tuesday, June 5, 6:00 p.m., followed by second reading of the budget beginning at 6:30 p.m. The location for these meetings will also be the J. Floyd Hall Administrative Center.


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