Anderson 3 staff report $2.67 million surplus through February; state and federal funding shifts could reshape next year’s budget

At its March 9 meeting, the Anderson 3 School Board received a budget update from district finance staff who reported that, through the end of February, the general fund’s revenues exceeded expenditures by $2,669,627.

"Revenues exceeded our expenditures by 2,669,627," said Mr. Moore, the staff presenter on the financial report, who told the board the district’s revenue is roughly 1% behind last year but that a wave of property-tax receipts should push collections higher. He estimated the district is on track to exceed budgeted property-tax revenue by about $375,000 to $400,000 when collections are finalized.

Why it matters: the district is balancing near-term positive cash flow with uncertainty about several funding streams that affect next year’s budget. Mr. Moore reviewed drivers that changed recent-year spending patterns — notably the district’s decision to outsource substitute-teacher services and the reclassification of some special-education costs from federal to general-fund support — and provided dollar estimates.

Mr. Moore said the shift of substitute services to a contractor (ESS) and the reclassification of some special-education costs each accounted for roughly $190,000 in higher purchase-services spending, together about $370,000. He told the board outsourcing improved sub coverage but increased purchase-services costs because those expenses moved out of salaries and into contract spending.

State-level actions remain a key variable. Mr. Moore briefed trustees on the House Ways and Means budget language that sets aside $150 million to raise the state minimum starting teacher pay from $48,500 to $50,500 and on proposed technical changes that would remove an additional CTE weighting and reallocate it to a separate statewide fund. "We don't yet know how that's going to look for Anderson 3," he said, adding that the district could qualify for a $75 million rural-and-charter capital fund should it remain in the final budget.

Federal programs also present risk. Staff warned the board that Title I funding is expected to decline next year (Mr. Moore cited the district’s Title I allocation as roughly $866,000) and that more than 90% of several federal-program dollars currently pay staff salaries. That means any drop in federal allocations would likely require shifting positions or finding alternate local funding.

Staff also quantified near-term personnel cost items the board asked about: a districtwide step for teachers is estimated at about $185,000, a step for other non-teaching staff about $120,000, and a 2% bus-driver step is about $20,000 on the district schedule.

What’s next: staff said the district will receive its 135th-day enrollment update on March 11, which will clarify some state-aid projections. Moore told the trustees he will return with updated numbers next month and recommended conservative projections while state and federal budgets remain unsettled.

The board did not take any budget votes at the meeting; members asked follow-up questions and directed staff to continue refining revenue and enrollment assumptions.