Meom Gives Board Budget Information

This memo on the Manhattan USD 383 Budget from Dr. Robert Seymour & Bruce Stiles was given to Superintendent Dr. Sharol Little and Manhattan/Ogden USD 383 Board of Education. It tells how the Budget process worked:

Background Considerations

The development of the USD 383 budget began in October soon after our September enrollment count was confirmed. Preliminary information indicated that USD 383 would need to make substantial cuts to the budget as well as generate new revenue in order to fund the district for 2001-2002. The administration initiated a budget planning process involving large numbers of community members, teachers, and administrators. Subgroups of the large Budget Advisory Committee examined the budget and made recommendations for budget cuts. >From these recommendations the administration submitted final recommendations to the Board for approval. The administration also recommended staff reductions which were also approved by the Board and implemented through nonrenewal of teaching contracts.

Current Considerations

The actual budget is still in the process of development, however a clearer picture of the needs of the district has emerged. The Board currently has a tentative agreement with NEA-Manhattan for a salary schedule for 2001-2002. This requires $1.16 million in salary and benefits to teachers. In addition the administration will recommend additional funds of $60,300 for administrative salary, $150,000 for classified salary, and $60,000 for increased cost for administrative and classified health benefits. The amount budgeted for energy was also increased by $244,000 and the amount for property insurance was increased by $50,000.

Financial Implications

This year (FY 02) for the first time, special education funds will flow through the general fund to the special education fund. The FY 02 recommended $27,542,403 general fund budget for USD 383 includes $3,022,664 in special education funds; after these funds are transferred to special education, this will result in a net general fund of $24,519,739. Last year (FY 01) the general fund budget was $24,876,896, a $357,157 net reduction to the general fund for FY 02.

As discussed in budget meetings earlier this year, the administration estimated an increase of 3% to 3.5% in the LOB. Last year (FY 01) the LOB represented 18.72% of the general fund. This was funded with an LOB mill levy 17.242. For 2001-2002 (FY 02), the budget includes an LOB of 21.4% of the general fund and a mill rate of 17.882 resulting in an increase of 2.68% in the LOB and an increase in the LOB mill levy of .640.

In addition, the administration has reviewed the cash accumulated in all tax revenue funds and increased valuation and found that for one year USD 383 can levy the recommended amount without increasing the total mill levy for district taxpayers. In fact, the total mill levy for USD 383 will be reduced from 48.969 in FY 01 to 48.575 in FY 02, a net reduction of ..394 mills.

Recommendations

The administration recommends the USD 383 Manhattan/Ogden Board of Education approve publication of the 2001-2002 budget hearing on August 14, 2001 at 5:30 PM at Robinson Education Center, 2031 Poyntz Ave., Manhattan, Kansas.