As most readers now know, I serve on our local school board. \u00c2\u00a0That’s why much of my writing has to do with education, government, and children. \u00c2\u00a0This morning on Facebook, a gentlemen who’s recently moved back to town asked several questions that I’d like to answer, in a format better suited to a longer response.<\/p>\n
1)\u00c2\u00a0how does the school system operation get the funds to operate; where does the money come from and what is the source?<\/em><\/p>\n The school system receives funding from the federal government (4%), the state (41%), Anderson and Roane Counties (27%), and the City of Oak Ridge (28%). \u00c2\u00a0Funds from the federal government are fairly restricted to specific uses, and state funding (known as BEP) comes with significant strings attached. \u00c2\u00a0State law dictates a minimum in matching funds from counties, although nearly all contribute more than the statutory minimum since state funds+county minimums isn’t adequate — in Oak Ridge or anywhere else. \u00c2\u00a0[Source: p. i, ORS FY14 Budget<\/a>]<\/p>\n 2)\u00c2\u00a0the sales tax enacted for the HS Project: is that paid to the ORSS or CoOR?<\/em><\/p>\n Sales taxes are all submitted to the State, and the local option (about 2.5% of the 9.75% sales tax) is returned to the County Trustee. \u00c2\u00a0Of the local option sales taxes collected in any given county, half is divided equally (proportionate to enrollment) between all the school systems in the county. \u00c2\u00a0 In Anderson County, Oak Ridge gets about 1\/3, Clinton City gets just a little bit, and Anderson County Schools gets almost 2\/3. \u00c2\u00a0The other half — the half not designated by state law for education — goes to the local government in the jurisdiction where it was collected. \u00c2\u00a0So, if the item was purchased in Oak Ridge, half of the local option sales taxes is split between the three school systems, and the other half goes to the City of Oak Ridge.<\/p>\n After the County superseded the tax rate, the school board unanimously approved a resolution (requiring a like resolution by City Council) that the schools would continue to contribute the schools’ portion of the half-cent collected in Oak Ridge — exactly what the referendum specified — to the City for debt service on the high school. \u00c2\u00a0However, the City never even voted on that resolution, so it’s meaningless unless and until they do.<\/p>\n 3) \u00c2\u00a0from the published budget report there is an overage in the School Budget: is that correct or am I reading that wrong?<\/em><\/p>\n No, the budget is balanced. \u00c2\u00a0It has to be, by law. \u00c2\u00a0Revenues are budgeted at $55,485,152, and expenditures are budgeted at the same amount. \u00c2\u00a0[Source: p.1-3 of the budget, linked in the answer to question 1]<\/p>\n 4) \u00c2\u00a0\u00c2\u00a0if there ARE excess and above spending in the school account, what is the money for and where did it come from, and why is there an excess of funds when the BOE ask the CoOR for funding? Granted the City should pay the funding for the MOE, but again what is the $5,000,000 excess in the school account?<\/em><\/p>\n We, like the City and the State, have an undesignated fund balance. \u00c2\u00a0If, at the end of the year, any money remains, it goes into the fund balance. \u00c2\u00a0The state requires that we keep an amount equal to 3% of our budget (this year, that would be \u00c2\u00a0$1,664,554.56) in the fund balance, that we are not allowed to spend for any purpose without state approval. \u00c2\u00a0There are also restrictions — fund balance cannot be used for salaries.<\/p>\n An example of what fund balance is used for would be last Spring, when a large sinkhole suddenly developed in the middle of the soccer field (and of course, this had to happen during soccer season). \u00c2\u00a0It had to be repaired, and it had to be repaired immediately. \u00c2\u00a0Sometimes, fund balance is used for one-time purchases during the budget process, when local revenues are inadequate to meet needs. \u00c2\u00a0That happened this year: funding to add additional computers to the middle schools, required for mandated on-line testing, was taken from fund balance. \u00c2\u00a0It’s a good practice to keep fund balance at 12% of the budget, but we’re substantially below that.<\/p>\n Because we cannot legally overspend the budget (one can go to jail for that, I think) and it’s darn near impossible to project expenses to the penny, we typically end the year with a little bit left over. \u00c2\u00a0Not much, but a little bit. \u00c2\u00a0Over the last 70 years, we’ve built up a bit of a reserve, but over the last 15 years, it has dwindled as local funding failed to keep up with the pace of inflation.<\/p>\n * \u00c2\u00a0* \u00c2\u00a0*<\/p>\n School Board members<\/a> can be easily reached: if you click on any member’s name, you’ll be taken to a page with a phone number and e-mail link. \u00c2\u00a0Thanks for asking, and let me know if I can be of further assistance.<\/p>\n","protected":false},"excerpt":{"rendered":" As most readers now know, I serve on our local school board. \u00c2\u00a0That’s why much of my writing has to do with education, government, and children. \u00c2\u00a0This morning on Facebook, a gentlemen who’s recently moved back to town asked several … Continue reading