By Ken Carter, Finance Director
The Pike County Board of Education and administrative staff
are pleased to announce that budget planning for the financial year 2015 / 2016
(FY16) is complete and ready for public comment. The budget process provides
resources for the instruction of our children and associated support activities
such as media, technology and professional training. The budget also develops
funding necessary for student transportation to and from school while also
providing for the upkeep and maintenance of buildings and grounds.
The revenue climate for Pike County Schools continues to
improve for FY16. State revenues provided under the Quality Basic Education
funding law increased by over $1.1 million. This marks the second straight year
of restored State educational dollars after a long seven year period of
reductions. We must point out, however, that State earnings under the funding
law remains below a “full funding level” by almost $1 million as a hangover
from the recent recession. Local funding for education through the property tax
remains level for the third straight year. No additional tax dollars are called
for in the FY16 budget.
Even given additional funding, balancing the expenditure
budget remains a difficult task as the School District digs out from the
effects of the sustained economic recession. This budget targets threes areas
which suffered during the recession – financial reserves, building maintenance
and employee wages. To balance the budget during the years 2009 – 2015,
the Board of Education depleted financial reserves, deferred maintenance and
mandated an employee wage freeze. The FY16 budget plans for building the
reserve account, a structured small project maintenance plan and for a modest
wage increase of 2-3% for support, transportation and nutrition employee
groups. Funding for teacher pay raises are as provided in the State teacher
salary scale.
Despite our optimism surrounding the FY16 budget, major
areas of concern for our financial future remain. Our transportation fleet
continues to age resulting in more and costlier repairs. The planned small
project maintenance program helps but many small and large maintenance projects
go unfunded. Budget pressures continue in the employer cost of State mandated
benefits. This is an area of concern for all governmental bodies and will
remain so for years to come as health costs continue to rise. Commitment of
significant financial resources will be required to address concerns in these
and other areas in future budgets.
With that brief overview of the FY16 budget, we move forward
as a community thankful for the resources we have to support the building and
flourishing of a most precious resource – the children and families of Pike
County.
