By Myrna Trauntvein
Times-News Correspondent
Juab School District Board of Education members voted to
adopt a proposed budget of $10,275,239 for the school year
2000-2001 at the conclusion of Thursday's budget
hearing.
The budget represents a 3.94 percent change over the
1999-2000 budget of $9,885,443.
Darin Clark, CPA and district clerk-treasurer, said the
budget consisted of four governmental fund types: general
fund, special revenue fund, debt service fund and capital
projects fund.
"The General Fund accounts for financial resources in use
for general types of operations such as maintenance and
regular operations," said Clark.
Clark said the general fund was approximately 4.1 percent
greater than the prior year's budget. The state legislature,
in the 2000 session, approved an increase of 4.5 percent in
the weighted pupil unit&emdash;the basic education funding
unit in the state.
A decrease in enrollment and budget cuts in other
programs led to a less than the 4.5 percent increase
approved by the legislature.
"The education of students is a labor-intensive
enterprise that is reflected in personnel costs," he said.
"Instruction is the biggest expenditure and represents 85
percent of that budget."
He said salaries and fringe benefits are budgeted to
consume the largest amount of the money in the general fund
which is where funds for maintenance and operations of
schools comes from.
Health care for the district staff is a large expenditure
in the general fund. An increase in insurance costs is the
largest chunk of the fund, therefore, has a large impact on
the budget. Over the last two years, district health
insurance cots have increased by 40 percent, or
approximately $250,000.
In addition to these costs, transitional costs for
utilities, maintenance, and other expenses involved in the
operation of the new high school are projected to be
approximately $240,000.
If all other expenditures in the budget were held static,
including no cost of living adjustment in salaries and
wages, the district has a need for additional funding of
approximately $490,000.
In 1999-2000, the district joined with 11 other school
districts in forming a new health insurance pool that, in
the opinion of the board, should help minimize the increase
in health insurance costs in the future.
The district must, by state law, balance the budget but
doesn't have the funding to do so and would face a
significant shortfall.
"Unfortunately, the increase in state funding over the
last two years has not been adequate to cover needs," said
Clark. "Last year, the district was able to handle this fund
issue through the use of district reserves, the use of a
transfer of 10 percent of basic funds from the district
capital outlay levy as allowed by state statute and by
making budget cut in areas of the budget that have the least
impact on instruction."
Clark said the district needs to receive additional
revenue or cut the current level of services. After
receiving public input, the board decided to avoid making
any budget cuts that would impact the classroom.
Some other budget cuts have been made, however.
Nevertheless, it became necessary, said Clark, to increase
revenue by increasing property tax revenue by increasing the
recreation and capital outlay levies slightly.
The district currently subsidizes the recreation program
with general funds and the capital outlay fund subsidizes
the general fund. By increasing the two levies,
approximately $183,000 will be raised to help fund the
current educational program.
"Special Revenue Funds, which are special programs and
school food services, are used to account for the proceeds
of specific revenue sources that are legally restricted to
expenditures for specific purposes (Students-At-Risk, School
Lunch)."
Over 60 percent of district students participate in the
school lunch program and the program operates so efficiently
that few price increases have been necessary, however,
rising costs have forced the need to collect more for each
lunch and the 2001 budget represents a 10-cents a student
meal and 25-cents an adult meal in the budget.
He said that the debt service fund accounts for the use
of debt service taxes and other revenues collected for the
purposes of retiring bond principal and paying interest
due.
The debt service fund includes payments for the 1996
General Obligation Bond of $12 million. The proceeds were
used to construct and furnish the new high school which
opened in 1998-1999,
"We are in our second year of a 20-year repayment
obligation," said Clark. "The payment of principal and
interest on this bond issue represents the majority of the
Debt Service Fund expenditures and the largest portion of
the district's property tax rate.
"The Capital Projects Fund accounts for proceeds from
sales of bonds and other revenues to be used for authorized
construction," Clark said.
The capital projects fund actually decreased in the
2000-2001 budget. Last year the amount was $628,409 and this
coming school year it will be $590,235.
"The increase in the property tax levy will reduce the
need to dip into the capital outlay fund," said Clark.
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