March Notes From The Wicomico County Board Of Education

These Board Notes provide an informal summary of business conducted at recent meetings of the Wicomico County Board of Education. Notes are provided for the March 13 Board meeting first, followed by summaries of the Board work sessions held March 6 and 27.

The Board of Education at its March 13 monthly meeting:

Fiscal Year 2012-13 Proposed Consolidated Current Expense Budget

Approved the proposed Fiscal Year 2012-2013 Consolidated Current Expense Budget, for delivery to the County Executive by March 15. The approved proposed budget is posted at www.wcboe.org; click on the Budget box.

A number of budget hearings, input sessions and work sessions will occur in the coming months, prior to the adoption of a final budget by June 30 for the fiscal year that will begin on July 1. The County Executive has scheduled community forums on the county’s FY 2013 economic outlook for March 28, Wicomico Youth & Civic Center Midway Room; March 29, Hebron Volunteer Fire Department; and April 2, Pittsville Volunteer Fire Department, all at 7 p.m. The Board will have its second public budget hearing on May 24.

On March 13, the Board approved the Proposed Consolidated Current Expense Budget of $172,568,018. The unrestricted portion of the budget, referred to as the general fund operating budget, totals $160,199,120. The Board has requested an additional two (2%) percent in general fund operating aid from the County. The additional 2% equals $723,938 above last year’s appropriation of $36.2 million. This additional amount will more than cover the maintenance of effort (MOE) amount of $206,108 required under state law.

The proposed FY 2012-13 general fund operating budget revenues are projected to increase by $4,425,287. This increase is the result of netting:

-a 2% increase requested from the county, $723,938
-an increase in other local revenue of $164,280, which includes new revenue enhancements
-an increase of $4.9 million in state aid as recommended in the governor’s budget submitted to the legislature in January. This large increase in state aid is driven by our modest increase in student enrollment and a decrease in our county’s wealth; both variables are key drivers of the Thornton state aid to education formulas. The governor’s budget reflects a 1% increase in the “target per pupil foundation amount,” an increase that has not been funded since FY 2008. It is important to note that much is undecided about state’s budget. With discussions ongoing about the pension pushback, MOE requirements and other legislation, the governor’s proposed budget is likely to be modified.

-a loss of one-time funds, which used to balance our FY 2011-12 budget and will no longer be available. This includes $1 million from the School Construction Savings Fund and a $4 million fund balance.

-$3.3 million in one-time federal dollars from the Education Jobs Fund, which must be fully obligated by Sept. 30, 2012. This $3.3 million can only be used by the Board (according to federal law) to pay school based salaries and fringe benefits.}

The Board is projecting $6,104,660 of additional costs to operate existing programs and facilities for FY 2012-13:

-the lion’s share of this increase ($2.4 million) is attributable to fixed charges such as health insurance, workers compensation insurance and property and liability insurance
-$1.6 million for recruitment and retention of a highly qualified workforce. The Board is engaged in ongoing negotiations with its employee bargaining units.
-$770,200 is attributable to assuming costs previously funded by federal grant funds that are no longer available
-$571,000 increase as part of our tuition exchange contract with the Delmar (DE) School District
-$155,000 in operation and maintenance costs
-$97,000 for emergency environmental cleanup costs
-$170,000 for additional costs related to our bus transportation program including escalating fuel costs

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