HCSD 2017-2018 tentative budget approved

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HCSD 2017-2018 tentative budget approved

August 12, 2017 - 11:00

Budget talks continue across Hernando County, including the incoming funds and expenditures of the School District. Kendra Sittig, Director of Budget, and Joyce McIntyre, Director of Finance and Purchasing, presented their tentative budget to the School Board on 07/25/17.

The anticipated incoming funds total $265,982,706. However, the finance department included the potential loss of revenue from transfers of approximately $14,699,540. There are four primary revenue sources for the district’s general funds.

The State of Florida provides the lion’s share of revenue - $115,267,800. This year, the state will provide $4,203.95 per student, an increase of $43.24 over last year. The proposed budget’s second-largest funding source is from the millage rates from property taxes, with an anticipated $45,864,810 for the 2017-2018 year.

Transfers from Capital Funds accounts for $5,100,000. The district also receives $1,839,811 from new construction impact fees in the county, and $8.7 million from the ½-cent sales tax.

Finally, the federal government provides $1,214,000. Special Revenue funds from federal grant programs (such as Title I, IDEA, Adult Education, Food Service, and several others) can only be used for those specific purposes. These entitlement grants bring the district approximately $12,185,598.

Food Service, however, is unique. While it does receive federal funding (via reimbursement for student meals), and some state funding, it is also self-sustaining through its cafeteria sales to both adults and students.

Unassigned funds of $10,376,044 are also included in the proposed tentative budget. This brings the total of incoming funds to $179,662,465.

Turning to expenditures (appropriations), salaries and benefits consume nearly 83% of the budget. The remaining 17% is used for purchased services, materials/supplies, energy, and miscellaneous expenditures and capital outlay. The total anticipated expenditures equal $167,898,737. This does not include any transfers between funds or the unassigned fund.

Regarding Debt Service revenues and expenditures, some figures have not been released by the State and are incomplete. Anticipated funds include transfers from the capital funds, bringing the total of funds to approximately $17,509,615. These expenditures are the repayment of the school district’s debts on general obligation and other bonds and capital improvement bonds.

Capital improvement or outlay projects involve obtaining and constructing facilities or equipment. As noted above, the ad valorem tax primarily funds this portion of the budget. Anticipated revenues are approximately $24,287,986, and expenditures could be as much as $14,438,244.

The fiscal year ended 06/30/17, but the figures are being audited for accuracy. The final figures from the 2016-2017 school year have not been determined but will be included in the presentation at the second budget hearing scheduled for 09/15/17.

The School Board voted unanimously to approve the tentative proposed budget for the 2017-2018 fiscal year.