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The 2014–2015 Budget Process

Tuesday, June 24, 2014 — Board Meeting

Public Hearing and Third Reading of the 2014–2015 Budget

Lexington One board approves 2014–2015 general fund operating budget

Lexington County School District One administrators presented a third reading of the district’s 2014–2015 general fund operating budget at a public hearing held at 7 p.m. Tuesday, June 24, 2014.

The Lexington County School District One Board of Trustees approved the district’s 2014–2015 general fund operating budget at the board meeting that followed the public hearing.

The district’s general fund operating budget provides funding for the day-to-day operations of the district such as paying salaries, insurance and utilities and purchasing supplies, materials and services.

From the second reading to the third reading, the proposed budget was increased by $137,771 as Lexington One administrators added two new positions and extra days for some Guidance staff to the budget.

The third reading of the budget included a recommended general fund operating budget of $220,425,851 — about an 8.6 percent increase ($17,461,951) over Lexington One’s current operating budget for 2013–2014 of $202,963,901. The projected $220,425,851 in proposed operating expenditures consists of about 87 percent salaries and related costs, 7.5 percent for programs and services, and 5.5 percent for utilities and maintenance.

The proposed budget shows an increase of about $15.6 million in employee salaries and related costs (an 8.8% increase) and an increase of about $2 million in programs and services (a 7.0% increase).

It also adds 95.64 positions (to accommodate student growth across the district and the opening of Deerfield Elementary); includes a step increase (about $2.5 million) for all employees and a one percent salary increase (about $1.6 million) for all employees; transfers allowable costs to capital funds; budgets an additional $1 million from fund balance over last year ($9 million total) and includes a millage increase.

Act 388 provides a formula for districts to use to increase millage (the percent of growth in school district population and the CPI). For 2014–2015, that formula would allow Lexington One to increase millage by 9.71 mills. However, the district will add 6.75 mills (not the 9.71 mills it could have added) to fund the budget.

Act 388 millage is not added to owner-occupied homes but is added to businesses, automobiles, etc. With a 6.75 mill increase, a resident with a business valued at $100,000 would see taxes increase about $40.5 ($100,000 X .006 percent assessment rate X additional mills). Each mill brings in about $232,067 in revenue to the district. The district currently levies 271.46 mills for operations.

Budget Overview

Many things impact a school district’s general fund budget each year — student growth, student to teacher ratios, tax collection rates, property tax relief, changes in other revenue from state and federal government, program needs, mandates like increases in the cost of the district employee health insurance, retirement or other benefits. Here are some of the most significant things affecting this budget.

Growth

Lexington One is the largest school district in Lexington County — geographically and in student enrollment. The district is 360 square miles (much still undeveloped) while Lexington County is 701 square miles.

The district had an average daily membership of 23,364 students (not including 3- and 4-year-olds) on the 135th day of this school year (2013–2014). This is an increase of 429 students (1.9%) over the 2012–2013 school year’s 22,935 average daily membership.

Lexington One remains one of the state’s fastest growing school districts growing 5,135 students over the last 10 years (from 18,229 ADM in 2003–2004).) Administrators project a student growth of 573 students for the 2014–2015 school year. The district ranks ninth in the state in enrollment.

Revenue

The district has made preliminary projections for revenue based on historical data, the House and Senate version of the state budget, and preliminary local assessment projections from the county.

Districts continue to be funded by the state at lower levels than the Budget and Control Board’s formula recommends. South Carolina’s main funding mechanism for schools is the “Base Student Cost.” The $2,120 Base Student Cost recommended by the legislature this year is no exception. According to the Budget and Control Board, the Base Student Cost in 2014–2015 should be $2,742. Instead, it is below the Budget and Control Board’s 2005–2006 school year formula ($2,290).

In addition, the district anticipates once again losing the “hold harmless” funding (designed to ensure that no district lost money due to the changes in the calculation of the Index of Taxpaying Ability). This year the district lost $2.3 million in funding due to the loss of the hold harmless money and anticipates losing the same amount again next year.

As previously mentioned, millage is no longer added to owner-occupied homes but is added to businesses, automobiles, etc. Lexington County School District One’s tax base is made up of about half owner-occupied and half business tax assessments and other taxable assessments. Overall business assessments are not increasing as much as they could due to the county’s fee-inlieu of taxes agreements with some of the county’s largest corporations. The district does not participate in those negotiations. Neither is the district provided detailed information regarding those agreements. As a result, the district’s taxes derived from fee-in-lieu of agreements are budgeted based on historical data.

The 2007 industrial park tax distribution arrangement designed to help offset the cost to districts of the impact on student growth caused by new businesses moving to the county is a positive step. Although the district has not yet seen any revenue from industrial park development in the county, future revenue is predicted.

Each year the state provides school districts with money in an attempt to reduce the impact created by property tax relief (Act 388). When first implemented, property tax relief funds replaced dollar for dollar the taxes levied for school operations on an owner-occupied home valued up to
$100,000. Beginning in 2009, property tax relief money was distributed on a per capita basis rather than on a basis that takes into account the actual taxes lost by the county. Last year, the 2013 fiscal year, the district received almost $18 million less from the state than it would have received before Act 388 for the growth in homes.

Lexington One’s 2013–2014 general fund operating budget was $202,963,901. Board Policy DB Annual Budget requires the district to maintain no less than seven percent of its total general fund budget as a fund balance from one fiscal year to the next. However, the district usually reserves 10 percent, slightly more than one month of operating expenses.

06-18-2014 Public Notice

06-24-2014 Meeting Agenda

Chief Financial Officer John Butler’s Presentation

Lexington One board approves 2014–2015 general fund operating budget

Approved fees for 2014–2015

Approved 2014–2015 Budget

 

Tuesday, May 20, 2014 — Board Meeting 7:30 p.m.

Second Reading of the 2014–2015 Budget

Lexington One continues 2014–2015 budget process with second reading

Lexington County School District One administrators continued the district’s 2014–2015 budget process by presenting a second reading of the proposed 2014–2015 general fund operating budget at its May 20 monthly board meeting.

From the first to the second reading, the proposed budget was reduced by $758 as Lexington One administrators recommended a $220,288,080 general fund budget — about an 8.5 percent increase ($17,324,179) over Lexington One’s current operating budget for 2013–2014 of $202,963,901. The projected $220,288,080 in proposed operating expenditures consists of about 87 percent salaries and related costs, 7.5 percent for programs and services, and 5.5 percent for utilities and maintenance.

05-13-2014 Public Notice

05-20-2014 Meeting Agenda

Chief Financial Officer John Butler’s Presentation

Lexington One continues 2014–2015 budget process with second reading

Proposed fees for 2014–2015

 

Tuesday, April 29, 2014 — Special Board Meeting 6:00 p.m.

Budget Workshop
First Reading of the 2014–2015 Budget

Lexington One begins 2014–2015 budget process

On Tuesday, April 29, 2014, at 6 p.m. at a special budget workshop held for the district’s Board of Trustees, Lexington County School District One administrators presented a proposal for funding the district’s 2014–2015 general fund operating budget.

The district’s general fund operating budget provides funding for the day-to-day operations of the district such as paying salaries, insurance and utilities and purchasing supplies, materials and services. The budget, as it appears at the budget workshop/first reading, is merely a projection. The district has made preliminary projections for revenue based on historical data, the House version and Senate Finance Committee version of the state budget, and preliminary local assessment projections from the county.

In the workshop, which serves as first reading, Lexington One administrators recommended a $220,288,838 general fund budget — about an 8.5 percent increase over Lexington One’s current operating budget for 2013–2014 of $202,963,901. The projected $220,288,838 in proposed operating expenditures consists of about 87 percent salaries and related costs, 7.5 percent for programs and services, and 5.5 percent for utilities and maintenance.

The proposed budget shows an increase of about $15 million in employee salaries and related costs (an 8.7% increase) and an increase of about $2 million in programs and services (a 7.3% increase).

It also adds 92.44 positions (to accommodate student growth across the district and the opening of Deerfield Elementary School); includes a step increase (about $2.5 million) and a one percent salary increase for all employees (about $1.6 million); transfers allowable costs to capital funds; and budgets an additional $1 million from fund balance over last year ($9 million total).

Lexington One Superintendent, Dr. Karen Woodward, opened the budget workshop by saying, “Although we are encouraged by the moderate increase in revenue for 2014–2015 in the proposals put forth by the legislature so far, districts will continue to be funded below the 2005–2006 school year Base Student Cost.

“We’ve crafted a budget that continues our focus on our employees with a step increase and one percent increase, focuses on staffing for growth and change and provides start-up costs for a new school as we continue to grow.

“We are absolutely committed to providing quality education that is foundational to our students’ futures, essential to the quality of our community and significant in economic development — all of which is necessary for a vibrant Lexington community, good jobs and successful lives.”

04-22-2014 Public Notice

04-29-2014 Meeting Agenda

Chief Financial Officer John Butler’s Presentation

Lexington One begins 2014–2015 budget process

 

 
 

Other Financial Information

What is In$ite?

SCDOE In$ite Data for Fiscal Year 2012 Abbeville–Greenwood 52

SCDOE In$ite Data for Fiscal Year 2012 Hampton 1–York 4

SCDOE Fiscal Year 2012 In$ite Data State Totals

 

Transparency

To comply with Section 1.43 of Part I.B of the Appropriations Act of 2009 (Act 23 of 2009), Lexington County School District One is posting monthly expenditures.

 

Funding Flexibility — Joint Resolution 4299/Provisos 1.43, 1.50 and 1A.23

2013–2014 Funding Flexibility Report

2012–2013 Funding Flexibility Report

2011–2012 Funding Flexibility Report

2011–2012 Funding Flexibility Report

2010–2011 Funding Flexibility Report

2009–2010 Funding Flexibility Report

2008–2009 Funding Flexibility Report

 

Administrative Cost Reporting — Appropriations Act H-63 section 1.68

2012–2013 Administrative Cost Report

 
 
 
 

 

 
 
 
Lexington County School District One | 100 Tarrar Springs Road, Lexington, SC 29072 | Phone: 803-821-1000 Fax: 803-821-1010 Social Media Facebook Twitter YouTube Disclaimer
 
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