Denita Dowell-Reavis
The Alexander County Board of Education unanimously approved spending nearly a million dollars in fund balance for the 2023-2024 school budget. At the December 12th meeting, chief finance officer Sharon Mehaffey shared the budget proposal with board members, a budget that is nearly five million dollars more than last year’s. The system budget just now went before the board for approval because the North Carolina General Assembly did not pass a budget for schools until late September. After the state passage, it takes some time for the state to disperse the money to districts. Once Alexander County Schools learned the amount the system was to receive, the district budget could be built. Included is a list of the different amounts of money the district will receive for 2023-2024:
State Fund $36,761,452
General Expense Fund $ 8,453,025
Federal Fund $ 7,437,196
Capital Outlay Fund $ 8,099,759
Child Nutrition $ 4,434,970
Child Care $ 297,337
Local Fund $3,766,254
Total $69,249,993
More than 80% of the system budget is spent on staff salaries and benefits. The district did lose state money this year due to declining enrollment. Plus, the state budget mandates more money to be paid to staff for retirement and health insurance but the state budget does not fund the increases. The health insurance increase alone is $160 per staff member. Mehaffey also explained that every dollar that is spent on a salary requires a quarter to be spent for retirement. The increase for benefits is not paid with state money but must come from local funding. Those adjustments account for the increase in 4.7 million dollars needed for this year’s budget. Meantime, the county school system will spend nearly a million dollars ($950,089) in fund balance to make the budget for this school year. This will leave less than one million dollars in fund balance (a savings account) for future operations.
Another problem with the state budget passing so late, is that teachers have already been hired for the year that the state says are over allotted. Those 4.5 positions are, in part, the reason the district must spend down the fund balance.
Finally, employees are currently paid locally with supplements. The amount ranges from two percent to nine percent of the salary. With the state increase in raises, the increase in supplements must be funded locally.
Alexander County Commissioners have agreed to fund the county with $66,000 more than last year (2022-2023). This money will help pay for the School Resource Officers at each campus.
Andrea Robinette included information about federal money. She told the board that federal money awarded because of the pandemic is expiring. As people leave those positions, the district is not rehiring them.
The district is receiving about $3 million dollars less in federal money for 2023-2024.
The board unanimously approved the budget; Anthony McLain was not present for the meeting.