DOE Looking at Big Deficit

Budget concerns were the talking point of the Jefferson County Board of School Commissioners’ Work Session on Tuesday, May 5, 2015. The Work Session followed a Called Meeting to address additional funds that are needed to cover the cost of additional roof decking for the Jefferson County High School Building 8 project. Tony Petitt of Rentenbach suggested that the $54,299 needed for the roof decking could come from the contractor’s contingency, which is $100,000. However, stipulations would need to be made to replace those funds should the contingency be needed in other areas. The project had budgeted for replacement of 40% of the roof decking but it was recently determined that 100% of the roof decking would need to be replaced, thus the additional cost. The increased work load may also be impacting to the completion date, which is tied to insurance recovery for the restoration portion of Building 8. At risk for Jefferson County is more than $200,000 that is tied to a early July deadline. Director of Jefferson County Schools Edmonds recommended that the Board allow the cost of the unbudgeted roof decking to come from the contractor’s contingency with the understanding that reimbursement may be required at a later date. Board Member Potts made a Motion to Accept the recommendation and was 2nd by Board Member Vines. A successful amendment was offered by Board Member Bradley and 2nd by Board Member Lowery to repay the contractor’s contingency from $117,000 left over from the Davis Bacon funds, in the amount of $54,299 to be held in a reserve account if necessary. The Motion as amended was Approved. Before moving into Work Session the Board also Approved, with a Motion from Bradley and 2nd from Vines, the recommendation of Jefferson County Finance Director Potts to use funds from scrap metal at Building 8 , in the amount of $16,076, for owner’s contingency on the project.

Work Session discussion was centered around the fiscal year 2015-16 budget, which is due to the Jefferson County Budget Committee on May 19, 2015 for consideration. Director Edmond informed the Board that there is not a balanced budget at this time and the current working document shows more that a $917,766 deficit. According to Finance Director Potts, salaries are up 3% from the current fiscal year ( $934,000) and salary related items increase account for $232,000. Also included is a $87,000 increase in non payroll related items. The actual variance from the original 2014-2015 expenditures and the anticipated 2015-2016 expenditures is $1,254,571. However, that number is offset by an increase in revenue to arrive at a current deficit of $917,766.

Board Member Potts stated that she would like to consider looking at line items for other charges and other materials and services( $800,000) as a starting point for cuts. She also noted that there is a significant increase ( $300,000) in technology. Potts stated that she would like to look at those departments and that the Board needs to have options and choices. Board Member Bradley stated that he will not support cutting into the salary or benefits of teachers as a means of balancing the budget and compared it to levying an additional tax on 560 teachers to balance a County budget. Potts and Board Chair Jarnigan stated that they would like to look at salary increases for classified employees. The Chair made the suggestion that Edmonds, Finance Director Potts and Budget Committee Chair Scarlett get together and comprise a budget. However, the suggestion did not find favor with the Board. Edmonds, Finance Director Potts and Board Members Bradley and Cavanah will meet to address the budget on Thursday and will present that budget to the entire Board at the regular meeting.

In other action, the Board approved, with a Motion from Board Member Cavanah and 2nd from Vines, general purpose fund 141 amendment #14. Upon a Motion from Bradley and 2nd from Cavanah, the Board Approved Federal Budget Amendment #14 from fund 142.

Source: K. Depew, News Director