The Washington School will adopt a new budget for the 2013-14 school year Wednesday morning.
The school board will hold its regular monthly meeting at 7:30 a.m. at the Locust Street administration building.
District CFO Shelley Kinder was still finalizing budget numbers Friday morning.
Kinder told The Missourian the district is experiencing a large decline in assessed valuation for the upcoming year.
“We are in the process of having the Franklin County assessor review those numbers because it is such a large drop,” she said.
“Other decreases in revenue we will experience in the upcoming year is in federal money due to sequestration,” Kinder noted. “Although we will see an increase in Classroom Trust (gambling proceeds) we will experience a decline in state formula money overall due lack of funds at the state level.”
As far as increases in expenses, Kinder said salaries are increasing overall 2.4 percent and the district will have to absorb an 11 percent increase in health insurance. Both of these combined will generate an increase in retirement benefits.
Kinder said salaries and benefits are always the biggest expense to the district.
With the April passage of a no tax increase bond issue, the Capital Projects Fund will increase on the expense side as work gets started on construction projects.
“We received the bond issue money (this week) so the revenue will show on the budget amendment to close out this year,” Kinder said.
The Debt Service Fund also will increase on the expense side due to the increase in payments to cover the new bond issue. However, debt service revenues will decrease due to the loss of assessed value on property taxes, Kinder said.
According to the preliminary budget, annual expenditures for next year are estimated at $64 million, which is higher due to the bond issue construction expenses. Total revenue is projected to be $49 million As previously reported, Kinder said the district will deficit spend this year.
Other items on the agenda Wednesday morning include contracts for the Early Childhood Learning Center, approval of the gifted program handbook and calendar, and student services contracts.