Hickory Public Schools
Budget Message
2014-2015
In compliance with the North Carolina School Budget and Fiscal Control Act, the Budget of the Hickory City Board of Education for fiscal year 2014-2015is submitted herewith. It totals $39.7 million, with $1.4 million designated for capital expenditures and $38.3 million earmarked for operations. The budget, as required by state statute, must be adopted and administered in accordance with GS 115C-425. The adopted budget resolution is balanced and the sum of the estimated net revenues and appropriated fund balances is equal to appropriations.
Overview
The economy is showing signs of improvement in Catawba County and across the State and country. The recovery is slow so we are not seeing much growth in our budget. The County’s unemployment rate is 6.90%, down from a high of 11.6% in 2012.
Our current county funded average daily membership (ADM) is 4,286, which is down 93 students from the prior year.
The Catawba County Board of Commissionersincreased 2014-2015 funding levels by $14 per pupil, but with a decrease in enrollmentour funding dropped $75,869. If our ADM had remained consistent the approximate increase would be $61,000. Funding from the County primarily pays for the facilities upkeep and repair, utilities, teacher supplements, local teacher positions and other instructional support.
State funds and federal grants are directly tied to the classroom, funding the majority of the school-based personnel including teachers, teacher assistants, office staff and administration. Instructional support accounts for 92% of State funds and88% of Federal funds.
The budget reflects a slight decrease in state revenue along with increased operational costs. Specific cuts in the state budget are to central office, teacher assistants, English as a Second Language program, and At-Risk allotment categories. Decrease in state funds is also related to decrease in ADM.The increased operational costs for the state budget are an average Hickory Public Schools teacher salary increase of 7.6%, salary increase of $500 for all non-certified staff, retirement rate increase of 3% (14.69% to 15.21%) and health insurance increase of 1%.
The federal budget did not see a significant increase or decrease compared to the prior year, but with increased operational cost as noted above additional expendable dollars for each federal program are down.
Other operational increases budgeted for are utility rate increases and property insurance increases with the addition of the new Longview Elementary School.
State Public School Fund
The State Public School Fund accounts for the largest portion of the school system’s Operational Budget, representing 61%or $23.3 million.
Local Current Expense Fund
The Local Current Expense Fund reflects a $14 per pupil increase in funding as compared to the 2013-2014 budget.
Approximately 53% of local funds are budgeted for maintenance and support of the system’s nine schools, with 92% of state funds going directly to the classroom. This division of expenditures is in accordance with the North Carolina Constitution, which stipulates the County’s responsibility is to provide adequate facilities for public education. The State’s responsibility lies in providing all students an equal opportunity for public education.
Federal Grants Fund
The Federal Grants Fund includes funding of approximately $1.3 million in Title I and $1.0 million in IDEA funds. Over $3 million has been received from the Federal Grants Fund.
Capital Outlay Fund
The Capital Outlay Fund totals $1.4 million and includes continuing installation of energy management, security upgrades and system-wide rekeying. Other projects include HCAM mobile units and parking lot, Southwest Elementary HVAC project, old Longview Elementary renovations and activity bus purchase.
Child Nutrition Fund
The Child Nutrition Fund budget for this year totals $2.5 million. At the end of the 2013-2014 school year, students approved for free or reduced lunch totaled 63%
Sixty-nine percent (69%) of Child Nutrition revenues come from federal reimbursement for the free lunch program and USDA commodities. Food sales account for approximately 21% of revenues received by the Child Nutrition program. The Director of the Child Nutrition program projects more than 515,000lunch meals will be served this year to HPS students.
Other Local Special Revenue Fund
Other Local Special Revenue Fund was established in the 2010-2011 budget and represents funds received through student fees, donations, and state or federal grants. These restricted use resources represent funds generated within the systemthat were previously budgeted under the local current expense fund. The fund totals approximately $1.0 million with approximately 31% of funds generated coming from student fees, donations and other income.