School Board Must Close $738K Budget Gap
The Board of Education has two months to close the budget gap.
The Board of Education will be tasked with closing a $738,188 gap to balance the district's proposed 2012-2013 budget, superintendent Bruce Watson said Thursday during a presentation of the budget's first draft.
“We’re faced with $738,000 now and we’re going to be spending the next two months with the board in committees talking about how do we close the gap," he said.
The proposed budget, which assumes a 2 percent tax increase, maintains the district's current assets and seeks to add new positions.
“Remember a little over two years ago when we lost $4 million?" Watson said, referring to state aid cuts. "We cut out a ton of positions and we’re trying each year to bring some of them back a little at a time."
The district's goal, he said, will be to keep "everybody and all the programs," while also adding the new positions.
In addition to the revenue raised through taxes and other sources (broken down below), the budget proposes to appropriate $1.1 million from the district's surplus.
As the district approaches the delicate budget balancing process, Watson said it would seek entrepreneurial solutions to bridge the shortfall, citing shared services agreements and school bus advertising as potential revenue generators.
A breakdown of the first draft of the 2012-2013 Fair Lawn school budget is contained below:
First Draft of 2012-2013 Budget
* = column that is summed to reach 'Balance'
|2012-2013 Tax Revenue (with 2% Increase)||$74,621,364|
|Appropriated Fund Balance||$1,100,000|
|*Tax Revenue + Additional Revenue + Fund Balance||$81,964,037|
|*Budget Book Today (General Expenses)||$82,702,225|
Breaking it Down
Tax Revenue - Expenses
|2011-2012 Tax Levy||$73,158,200|
|Allowable Levy Income (2%)||$1,463,164|
|*2012-2013 Tax Levy Cap (Tax Revenue)||$74,621,364|
|*Budget Book Today (General Expenses)||($82,702,225)|
|State Aid Estimate||
|Special State Aid Payment||$797,622|
|Extraordinary Aid Estimate||$1,000,000|
|Capital Reserve Interest||$2,000|
|Capital Reserve Withdrawal||$300,000|
|Special Education Medicaid Interest||$40,078|
|Other Revenue (Community School)||$1,454,478|
|Misc. Revenue and Interest||$195,500|
|Education Job Fund Aid||$0|
|*Total of Additional Revenue||$6,242,673|
|*Tax Revenues - Expenses||($8,080,188)|
Anticipated Closing Fund Balance
|*Planned Fund Balance Appropriation (Surplus Appropriation)||$1,100,000|
|*Tax Revenue - Expenses + Additional Revenue||($1,838,188)|