Mercer County Schools project solid reserves but await state ‘‘seat’ funding numbers

Van, the district finance officer, told the Mercer County Board of Education that year-to-date actual revenue through December 2024 was “just under $22,000,000,” a 17% rise from the prior fiscal year, and that the district has budgeted roughly $29,500,000 for the current year. He later presented a draft budget for the next fiscal year that lists total revenue at $28,500,000 and total expenses at $25,800,000.

The draft budget includes a 10.75% contingency and a planned step increase for all current staff that the finance officer said increases salary and fringe costs by about $132,000. “This budget includes a step increase for all staff,” Van said while reviewing the draft figures. He also reported that the district’s ending balance is 27% higher than last year and that some categorical expenses — instruction and school-level supports — account for the largest shares of spending.

The board was warned that state funding remains uncertain. Van and Bruce Booher, the superintendent, said they had recently heard indications of a shortfall in state “seat” (SEEK/seat) funding but that exact amounts were not yet available. Van said the Kentucky Board of Education (KBE) had not supplied final per-pupil numbers: “We have not received our final seat numbers from KBE yet.” Booher said he was told by the commissioner of education that the commissioner would ask the General Assembly during the short session to fund the shortfall, but the district has not received confirmed allocations.

District staff emphasized that the draft budget is preliminary and will be adjusted as final state figures and local tax receipts are known. Van noted the district historically budgets conservatively against state draft numbers: “We always budget under where they tell us we’re going to be in the beginning.” The finance officer said tax receipts typically become clearer in July or August and that the board will revisit the working budget in May when staffing and salary schedule decisions are made.

Board members asked clarifying questions about the draft. No formal vote was taken on the draft budget at the meeting; the board reviewed the materials and moved the draft forward for further review in the budget cycle.

Ending note: The finance officer asked trustees to review the draft materials ahead of future budget hearings and said staff will return with updated numbers once KBE issues final SEEK/seat allocations and local tax estimates are available.