Boone County Board of Education FY17 Budget Analysis & Explanations

7/25/2019 Boone County Board of Education FY17 Budget Analysis & Explanations

1/14

Boone County Board of Education FY17 Budget Analysis & Explanations

Item Description

Original FY17

Budget Change

Revised FY17

Budget Explanation

Fuel - Diesel 250,000 30,000 280,000 FY15 actual expenditures were $346,516 and YTD April

2016 expenditures (including encumbrances) totaled

$350,034. Per information provided by the county CSBO,the YTD FY16 expenditures as of June 17, 2016 were

$252,646. Not all invoices for FY16 would have been

received and included in the June 17, 2016 amount.

Further, fuel prices are starting to rise from the extremely

low prices earlier in FY16 and there are no known

significant changes in bus routing for FY17. In response

to WVDE's inquiry, Boone County proposed a more

reasonable amount of $280,000.

Fuel - Gasoline 32,700 10,300 43,000 FY15 actual expenditures were $59,245 and YTD April 2016

expenditures (including encumbrances) totaled $48,858.

Per information provided by the county CSBO, the YTD

FY16 expenditures as of June 17, 2016 were $39,292. Not

all invoices for FY16 would have been received and

included in the June 17, 2016 amount. Further, fuel prices

are starting to rise from the extremely low prices earlier in

FY16 and there are no known significant transportation

changes for FY17. In response to WVDE's inquiry, Boone

County proposed a more reasonable amount of $43,000.

Oil/Lubricants 6,000 4,000 10,000 FY15 actual expenditures were $18,951 and YTD April 2016


Per information provided by the county CSBO, the YTD

FY16 expenditures as of June 17, 2016 were $7,323. Notall invoices for FY16 would have been received and

included in the June 17, 2016 amount. In response to

WVDE's inquiry, Boone County proposed a more

reasonable amount of $10,000.

- 1 -


2/14


Item Description

Original FY17

Budget Change

Revised FY17

Budget Explanation

Other Professional Salaries 75,268 4,732 80,000 FY15 actual expenditures were $255,905 and YTD April


$202,589. Per information provided by the county CSBO,the YTD FY16 expenditures as of June 17, 2016 were

$153,639. In response to WVDE's inquiry, Boone County

proposed an increase of $4,732 to a total of $80,000 for

FY17. They also indicated that the significant reductions

from FY15 and FY16 were due to the reduction in extra

salaries for computer support at the schools and the

elimination of other extra pay. Boone County indicated

that the revised amount of $80,000 should be sufficient

for operations in FY17.

Service Personnel Salaries 5,960,265 68,960 6,029,225 Based on the number of known service personnel

reductions made during personnel season, WVDE

estimated service personnel regular salary costs of

$6,097,644. The county had only budgeted $5,960,265,

for a difference of $137,379. The county reviewed the

amount budgeted and indicated that an additional

$68,960 was needed to cover service personnel salaries

for FY17. While still less than the initial WVDE projection,

this amount seems reasonable given the additional review

performed by Boone County of this line item.

Service Personnel Substitute Costs 360,188 40,000 400,188 FY15 actual expenditures were $559,764 and YTD April


$505,769. The FY17 budgeted amount of $360,188 wassignificantly less than the historical data. Boone County

revisited this line item and proposed an increase of

$40,000 to bring the total budgeted to $400,188. They

indicated that substitutes will not be utilized for certain

service personnel vacancies during the 2016-17 school

year in order to allow them to achieve the significant

savings from recent years.

- 2 -


3/14


Item Description

Original FY17

Budget Change

Revised FY17

Budget Explanation

PEIA 3,359,859 410,246 3,770,105 The amount budgeted for PEIA expenditures was

compared to the state aid allocation for PEIA for state aid

eligible employees. The budgeted expenditure amountwas only $3,359,859 but the revenue was $3,770,105, a

deficiency of at least $410,246. The state aid allocation

for PEIA was calculated by WVDE and is based on actual

employee premiums during the current year, as adjusted

for the known 14.5% employer premium increases for the

2016-17 year. The state aid PEIA allocation never exceeds

the actual expenditures incurred by a county board of

education because county boards of education must fund

their share of the PEIA premiums for employees paid with

local funds. In reality, the budgeted expenditures should

be higher than the associated revenue, but Boone County

proposed to make the two amounts equal in anticipation

that the FY17 PEIA state aid allocation amount will be

adjusted to a lower amount once the FY17 certified list of

personnel is complete. Because the state aid is

recalculated annually, WVDE accepted the revised Boone

County increase of $410,246.

Workers' Compensation 285,749 152,084 437,833 The FY15 actual Workers Compensation expenditures

were $353,905. After adjusting that amount for an

estimated 12% reduction in total personnel for FY17,

WVDE projected Workers Compensation expenditures of

at least $311,436 for FY17, a difference of $25,687.However, per the CSBO, the actual low bid for Workers

Compensation insurance for FY17 was $437,833. The

county therefore needed to increase the amount

budgeted by $152,084 in order to cover their known cost

for FY17.

- 3 -


4/14


Item Description

Original FY17

Budget Change

Revised FY17

Budget Explanation

Retirement 1,886,003 150,046 2,036,049 Based on the actual retirement expenditures for FY15

($2,313,692) and an estimated reduction of 12% for the

reduction in personnel for FY17, WVDE projected aretirement expenditure amount of approximately

$2,036,049. The county had only budgeted $1,886,003, a

difference of $150,046. The county proposed to increase

the amount budgeted for retirement to the amount of the

WVDE estimate.

Unemployment Compensation 40,000 160,000 200,000 The county budgeted only $40,000 for unemployment

compensation insurance. County boards of education are

self-insured for unemployment, meaning that Boone

County will receive a bill for all unemployment

compensation claims during FY17. WVDE had concerns

this amount was insufficient to cover the potential

unemployment compensation claims given the significant

number of positions that were eliminated for the 2016-17

year during personnel season. While this is very difficult

to predict, based on the fact that some of the 77

individuals who lost their jobs for FY17 have already

secured employment in other counties, WVDE felt that

Boone County's revised unemployment compensation

budget of $200,000 should be sufficient to cover the

actual claims they incur during the 2016-17 year.

- 4 -


5/14


Item Description

Original FY17

Budget Change

Revised FY17

Budget Explanation

Other Professional Services 442,000 158,000 600,000 The county budgeted $442,000 for other professional

services for the 2016-17 school year. The actual

expenditures for FY15 were $582,801 and the YTD April2016 (including encumbrances) totaled $807,035. Per the

explanation provided by the county, FY16 actual

expenditures included some significant legal fees for a

personnel issue and a special education student issue.

This line item also included the cost for resource officers in

the school. Because these costs are not projected to

continue, the county had significantly reduced the

budgeted amount down to $442,000. However, given the

likelihood of additional employee grievances during the

2016-17 year, Boone County proposed increasing this line

item by $158,000 up to $600,0000. This revised amount

appeared reasonable.

Rent 47,000 23,000 70,000 FY15 actual expenditures were $152,384 and YTD April


$110,944. Per the explanation provided by the CSBO,

several of the historical rental items were eliminated for

the 2016-17 year. The strings music program was

eliminated so the rental of instruments is no longer

required, the schools will pay for golf course rentals

directly, and a modular building was removed. The county

proposed increasing this line item by $23,000 up to

$70,000 to ensure that the amounts budgeted were

reasonable given the anticipated rental costs that will

continue into FY17.

Flood Insurance - 90,000 90,000 The FY15 actual expenditure for flood insurance was

$89,419 but no flood insurance was budgeted for FY17.

Per the CSBO, this was an oversight when preparing the

FY17 budget and must be added.

- 5 -


6/14


Item Description

Original FY17

Budget Change

Revised FY17

Budget Explanation

Legal Advertising 2,000 3,000 5,000 FY15 actual expenditures were $5,022 and YTD April 2016


The county only budgeted $2,000 for FY17, but there wereno known reductions in the number of legal

advertisements that must be placed during the fiscal year.

Therefore, Boone County proposed an increase to this line

item in the amount of $3,000 to bring the total budgeted

to $5,000.

Services Purchased for Another District/RESA 304,800 (34,800) 270,000 The county budgeted $304,800 for purchased services

from another district or RESA for FY17. The FY15 actual

expenditures were $238,594 but the YTD April 2016

(including encumbrances) amount was $431,113. Per the

CSBO, the actual amount for FY16 will be $314,798 after

open encumbrances are closed, so the county originally

requested to add $15,200 to bring the budgeted amount

to $320,000 to be in line with the expenditures for FY17.

However, at the meeting on June 24, 2016, the county

proposed eliminating a computer technician position paid

through the RESA which would generate savings of

$50,000. The net reduction to the original budget was

$34,800 for a final proposed budget amount of $270,000.

School Board Association Dues - 3,644 3,644 No amounts were budgeted for School Board Association

Dues. Because the Boone County Board of Education

intends to remain members, such dues would be requiredduring the 2016-17 school year. The actual amount

expended during FY15 was $3,644, which is the amount

the CSBO indicated would need to be added to the 2016-

17 budget.

Fire Service Fees - 700 700 No amounts were budgeted for Fire Service Fees for the

2016-17 school year. Such amounts are required by local

fire departments and are necessary expenditures during

the 2016-17 school year. The actual amount expended

during FY15 was $625 and the county proposed to budget

$700 for FY17.

- 6 -


7/14


Item Description

Original FY17

Budget Change

Revised FY17

Budget Explanation

Natural Gas 35,000 1,000 36,000 FY15 actual expenditures were $64,616 and YTD April 2016


Per information provided by the county CSBO, the YTDFY16 expenditures as of June 17, 2016 were $36,114.

Based on the actual FY16 expenditures to date (which are

likely low due to not all bills being received yet) and the

fact that only one of the three schools being closed had

Natural Gas expenditures during the year (Nellis

Elementary School) totaling approximately $1,400, the

county proposed to increase the original budget of

$35,000 by $1,000 to $36,000.

Food Service Transfer to Fund 61 759,878 180,541 940,419 The actual food service transfer for FY15 was $1,663,468

and the amount budgeted for FY16 is $1,224,337. The

county only budgeted $759,878 for the child nutrition

transfer for FY17 under the assumption that the county

would be able to significantly reduce costs associated with

the child nutrition program. Based on an analysis

performed by the WVDE Office of Child Nutrition,

assuming no change in program participation rates for

FY17, the estimated child nutrition transfer must be at

least $898,613. However, due to the decline in student

enrollment, it is more likely that program participation will

decline in FY17 which will result in an increase in the

required sponsor contribution. Assuming a 5% decline in

student enrollment, the estimated sponsor contribution

would need to be $944,270, which is close to the revised

budget amount of $940,419.

- 7 -


8/14


Item Description

Original FY17

Budget Change

Revised FY17

Budget Explanation

Water/Sewage 196,000 (13,000) 183,000 FY15 actual expenditures were $176,929 and YTD April


$191,358. The county originally budgeted $196,000 forwater/sewage which exceeds the historical amounts

despite the fact that 3 schools are being closed for FY17

which should result in some savings. Per information

provided by the county CSBO, the YTD FY16 expenditures

as of June 17, 2016 were $183,135 so the county proposed

changing the budget for FY17 to $183,000. WVDE

inquired about the amount of water/sewage expense at

the three schools being closed, which was approximately

$22,000 in FY15. I f you subtract that amount from the

FY15 actual expenditures, the estimated utility costs would

be $174,000; however, the water/sewage bills are

expected to increase at the schools which are receiving

the students from the schools that are being closed due toincreased usage. Therefore, the revised amount

proposed by the CSBO of $183,000 appeared reasonable.

Garbage 80,382 (5,382) 75,000 FY15 actual expenditures were $80,329 and YTD April 2016


The county originally budgeted $80,382 for Garbage which

was close to the FY15 actual expenditures despite the fact

that 3 schools are being closed for FY17 which should

result in some savings. Per information provided by the

county CSBO, the YTD FY16 expenditures as of June 17,2016 were $75,314 so the county proposed changing the

budget for FY17 to $75,000. WVDE inquired about the

amount of Garbage expense at the three schools being

closed, which was approximately $6,400 in FY15. If you

subtract that amount from the FY15 actual expenditures,

the estimated Garbage costs would be $75,929; therefore

the revised amount of $75,000 proposed by the county

appeared reasonable.

- 8 -


9/14


Item Description

Original FY17

Budget Change

Revised FY17

Budget Explanation

Liability Insurance 200,000 (27,596) 172,404 The county budgeted $200,000 for Liability Insurance for

FY17, but FY15 actual was only $151,673 and the YTD April

2016 expenditures (including encumbrances) was only$129,426. The CSBO initially wanted to revise the amount

to $130,000 based on the FY16 actual expenditures but

subsequently received an invoice from BRIM for the first

quarter of FY17 in the amount of $43,101. That amount

annualized is $172,404 which is the revised amount

needed in the budget to reflect actual known costs for

FY17.

Data Communication Services 262,317 (52,317) 210,000 The county originally proposed a budget of $262,317 for

Data Communication Services but upon request of the

Office of School Finance to confirm that the budgeted

amount for Telephone & Voice Communication Services

was correct, the county reviewed their proposed budgetand proposed reducing the amount by $52,317. The

combination of the two categories of expenditures is

approximately $129,878 less than FY15 expenditures and

$26,186 less than YTD April 2016 expenditures. The

proposed reduced amounts are likely sufficient to meet

the needs of the county during FY17 given the closure of

three schools.

Custodial Supplies 105,000 (29,000) 76,000 The county budgeted $105,000 for custodial supplies for

FY17. FY15 actual expenditures were $133,281 and YTD

April 2016 expenditures (including encumbrances) totaled

only $77,036. The amount budgeted seemed excessivegiven the reduced expenditure level in FY16 and the fact

that 3 schools are being closed in FY17. After additional

analysis, the CSBO proposed reducing the proposed

budget for custodial supplies to $76,000 which appeared

reasonable.

- 9 -


10/14


Item Description

Original FY17

Budget Change

Revised FY17

Budget Explanation

Electricity 1,204,419 (204,419) 1,000,000 FY15 actual expenditures were $1,044,913 and YTD April


$936,158. The county originally budgeted $1,204,419 forelectricity which exceeds the historical amounts despite

the fact that 3 schools are being closed for FY17 which

should result in some savings. Per information provided

by the county CSBO, the YTD FY16 expenditures as of June

17, 2016 were $980,623 but that amount would not

include all of the invoices for the year. During FY15, the

county indicated that the three schools which are closing

had combined electricity expenses of approximately

$120,000. Total FY15 expenditures less the amounts for

the three closing schools equals approximately $925,000.

The county is now proposing to budget $1,000,000 for

FY17 to provide for continued minimal electrical expenses

at the closed schools (one of which will serve as awarehouse) and the possibility of a harsh winter.

Textbooks 368,937 (168,937) 200,000 The county had originally budgeted $368,937 in textbook

expenditures for FY17 but proposed to reduce that

amount to only $200,000. While the county initially

planned to adopt new science textbooks during FY17, that

textbook adoption is not required since other resources

may be used to ensure the appropriate content standards

are taught to all students. The county's excess levy

contains a line for textbooks which is projected to bring in

$142,254 in levy proceeds for FY17.

- 10 -


11/14


Item Description

Original FY17

Budget Change

Revised FY17

Budget Explanation

Technology Supplies - Student Hardware 150,000 (150,000) - The county had originally proposed a budget of $150,000

for technology supplies - student hardware. Upon inquiry

of whether the county could live within the Step 7b and

Tools for Schools Technology allocations for FY17, the

county initially proposed to reduce the amount by $15,000

to $135,000. Upon further discussion and consideration of

the financial difficulties being faced by the county, the

county agreed to eliminate this expense completely from

the FY17 general fund budget and to rely on the state

funding to meet all technology needs during FY17. While

there is a provision in the excess levy for technology

related items, the levy also contains language about the

using the funds for the general operation of the school

system if sufficient state, federal or other special funds

become available to provide monies for the purposes

stated in the levy.

Dental & Vision 465,000 (412,069) 52,931 The county originally proposed a budget of only $465,000

for vision and dental expenses for their employer paid

plan. However, the actual FY15 expenditures were

$880,256. Adjusting for a reduction in staffing of

approximately 12%, WVDE expected vision and dental

benefits of $774,625 to cover the benefits for employees

during FY17. Initially, the county proposed adding the

$309,625 necessary to cover the full projected

expenditure for FY17. If the county does not eliminatevision and dental benefits as directed, such an increase in

the amounts budgeted for vision and dental would be

required to fulfill the obligations of the county for FY17. If

the county follows the directive, the county would be able

to reduce the $465,000 in the proposed budget by

$412,069 down to the $52,931 required for retiree vision

and dental benefits included in the county's excess levy

call.

- 11 -


12/14


Item Description

Original FY17

Budget Change

Revised FY17

Budget Explanation

Various Line Items Moved to Fund 61 for Step 7 Plan Revisions 445,000 (445,000) - During discussions with central office personnel on Friday,

June 24, 2016, the central office staff indicated that in light

of the decision to no longer adopt new science textbooks

during FY17 and their further review of the Step 7a plan

submitted to WVDE, the county could move $445,000 of

educational supplies and other operational costs to be

paid through Step 7a funds. In deficit situations, the State

Superintendent has previously allowed county boards of

education to utilize a certain amount of Step 7a funding

for operational expenses and the general changes

proposed by the central office staff would have been

allowable based on prior precedent. While the specific

line items from the general fund were not identified

during the meeting, WVDE agree to allow Boone County

Board of Education to resubmit their Step 7a plan to help

alleviate some of the strain on the general fund budget.

Prof . & Serv ice Salaries & Fringe Benefits - County Salary Supplement Reduction 4,082,827 (2,633,203) 1,449,624 Based on the original staffing levels included in the FY17

budget at the full county supplement amounts currently

being paid by Boone County Schools, the county

supplement is projected to cost $4,082,827. The line item

in the excess levy call that specifically mentions county

salary supplements is only projected to bring in $1,139,684

during FY17. The estimated savings from reducing the

salary supplements down to the 1984 amounts is

$2,633,203, leaving an estimated cost of $1,449,624 to payfor the salary supplements. If the county were to reduce

additional staff for FY17, the cost would be reduced

further. Note that the remaining cost for the salary

supplement still exceeds the amount being brought in by

the excess levy for FY17, but reducing the county salary

supplement any further would have required the State to

provide additional state equity funding. Since such funds

were not appropriated by the Legislature, the salary

supplement could not be reduced further.

- 12 -


13/14


Item Description

Original FY17

Budget Change

Revised FY17

Budget Explanation

Prof. & Service Salaries & Fringe Benefits - Additional RIFs TBD* The estimated cost for the 48.11 positions being paid from

local funds for FY17 is $2,516,178. The county is projected

to be 13.44 professional personnel over formula, including

8 professional personnel that are employed in positions

that are not eligible for state aid, and be 27.401 service

personnel over formula for FY17. Certain positions will be

unable to be eliminated due to being required by statute

(ex: Treasurer), IEPs, etc.

Prof. & Service Salaries & Fringe Benefits - Reduction of Extended Contract Terms TBD* The Boone County Board of Education made some

reductions to extended day contracts for professional

personnel during personnel season but there are still

remaining extended day contracts that are paid with local

funds. Service personnel extended contracts are eligible

for state aid funding since the extended FTE is utilized to

calculate the number of personnel funded. The maximumestimated amount of salary savings if all extended service

contract days were eliminated is approximately $448,000.

The full amount would likely be unable to be achieved

since certain work must take place over the summer

months. Note that the maximum savings of $448,000 is

included in the estimated cost for positions being paid

from local funds above.

- 13 -


14/14


Item Description

Original FY17

Budget Change

Revised FY17

Budget Explanation

Medicaid Revenue 861,850 400,000 461,850 The county budgeted $861,850 for Medicaid revenue for

the 2016-17 school year. That amount is higher than

expected in light of current statewide trends in Medicaid

collections. FY16 Medicaid revenues statewide are

roughly 33% of the amount collected through the same

period the previous year. WVDE recommended a cut of

at least $400,000 to bring the estimated revenues for FY17

more in line with the statewide trends but that amount

stay may end up being too high. Boone County Schools

bills Medicaid one year behind the date of service, so their

actual collections during FY16 are not indicative of the

amounts that will be collected during FY17. The actual

experience from other county boards during FY16 (who

are not on a one-year lag in billing) is a more relevant

indicator of expectations for FY17.

E-Rate Revenue - (220,000) 220,000 During the meeting on June 24, 2016 with central office

staff, the county notified WVDE of their failure to include E-

Rate revenue in the FY17 budget. Based on the

information provided by the county regarding E-Rate

reimbursement rates, that missing revenue was projected

to be approximately $220,000 assuming that the budgeted

expenditure levels are achieved. WVDE agreed to allow

the county to correct this error and include the missing

revenue in the FY17 budget.

Total Overall Increase (Decrease) to the 2016-17 Budget (2,505,470)

- 14 -

Boone County Board of Education FY17 Budget Analysis & Explanations

Documents

Transcript of Boone County Board of Education FY17 Budget Analysis & Explanations