Lawrence schools on 'good footing' financially

Sep. 7—MOULTON — With county sales tax and property tax revenues up, coupled with federal relief money related to the COVID-19 pandemic, the Lawrence County school system appears to be on "really good footing" but school officials have a concern when the federal relief funds disappear after 2024.

During a budget discussion for fiscal year 2023 last week, Chief Financial Officer Suzy Berryman said she is conservatively projecting $46.3 million in general fund revenue and $47.6 million in expenditures, a deficit of $1.3 million. Superintendent Jon Bret Smith and Berryman said the deficit comes from "underestimating revenue and overestimating expenditures."

"At the end of the year — this is my sixth budget — we've always been in the positive," Smith said after the budget meeting. "We believe this is the same way. We've added about three teacher units in conjunction with R.A. Hubbard (closure) to make sure those students are taken care. We look to have a solid reserve and room to grow."

Included in the budget is $2.5 million of Elementary and Secondary School Emergency Relief II money from the federal government to help schools cope with the pandemic. ESSER III money is $7.2 million more. Those funds stop after 2024, an issue District 2 school board member Gary Bradford is worried about.

The ESSER money now helps fund 20 high-dosage tutors, six virtual/blended teachers, two registered nurses, summer camp instructors, professional development, bookkeeping, software, supplies and HVAC units.

"The federal money has been a godsend no doubt about it," Bradford said. "Suzy does a good job of keeping things going, but I have cautioned several times when this money runs out, are our hands going to be tied where we have to keep these people? I'd love to keep everybody we can; it's just not feasible."

Berryman said the school district is seeing immediate savings from the closure of R.A. Hubbard High School in North Courtland in May.

She said the district's payment of supplements to teachers and coaches is down more than $100,000 as a result of the closure. She said the cost of utilities is down significantly, too. The school board hasn't made a decision on what to do with the former school and its athletic facilities.

Berryman said the beginning general fund balance on Oct. 1 is projected to be $8,573,227 and $7,895,134 on Sept. 30, 2023.

"About $7.5 million is a two-month operating reserve and we should exceed that," she said. The state requires a minimum of a one-month reserve.

In the 2023 general fund budget, the board will pay $1.9 million for 20.65 local teaching units. In this fiscal year, 17.5 teachers were funded with local funds. Three additional assistant principals, one at each high school, are in the fiscal 2023 budget. Total teacher salaries are budgeted at $17.6 million in fiscal 2023, up from this year's $16.898 million.

Teachers will receive $900 each for classroom student materials, up from $700 in fiscal 2022. The $50,000 purchase of two new driver's education vehicles is in the 2023 budget. Another $200,000 is budgeted for school resource officers across the district.

Ad valorem taxes this year are up to $1.565 million through July vs. $1.411 million through July of fiscal 2021, Berryman said. She budgeted $1.59 million for fiscal 2023. County sales tax numbers are budgeted at $5.6 million in fiscal 2023, $300,000 more than budgeted in fiscal 2022. However, sales tax collections through July were already at $5.254 million with two more months of taxes to be calculated in fiscal 2022, Berryman said. As an example of the growth, sales tax revenue in April was $695,937 vs. $556,487 in April 2021, and $439,253 in April 2020.

District 1 board member Christine Garner said she has mixed feelings on the budget numbers.

"It sounded good ... but I'm concerned about some things," she said "If we have a lot of excess money they are talking about, if we have 2.5 months of operating reserve, why were we in such a hurry to close R.A. Hubbard? I don't feel like those kids were treated fairly."

— mike.wetzel@decaturdaily.com or 256-340-2442. Twitter @DD_Wetzel.