School Board Approves $149.7 Million Budget

Lexington-Richland 5 Board of Trustees approved a $149.7 million budget that includes a 2 percent cost of living increase plus a step increase for all employees. 

Dr. Karl Fulmer, the district's chief financial services officer, originally proposed a 3 percent pay raise based off state budget versions. 

Fulmer said the 2 percent increase plus a step increase would be better for employees than what was recommended during first reading. 

“We have to wait until the legislature finishes their work to see exactly what they do," Fulmer said. "We think they’ll either do [a] 2 [percent increase] or 2 percent plus a step."

Board member Jim Turner asked Fulmer how he would address the salary increases if the state's budget didn't recommend a 2 percent increase plus step or another variation. 

Fulmer said since the difference of what was proposed during first reading to now is $330,823 he thinks the district will be able to cover it. 

He said he's recommending the 2 percent plus the step as long as the State gives the equivalent of the House version (2 percent) or better.

The 3 percent increase would have cost $3,375,488 compared to $3,706,311 for the 2 percent increase plus a step.

Board member Jan Hammond said she was very excited for the pay increases. Hammond had urged the board during first reading to consider including a step increase in addition to the cost of living raise. 

Superintendent Dr. Stephen Hefner said the raises will not apply to him. 

The new budget is about $7.5 million more than the 2011-2012 budget but no millage increase is recommended. 

Other changes since first reading include adding back money from a 5 percent reduction in school allocations ($121,259); an additional $30,000 for International Baccalaureate (IB) training; and $20,000 for security at Chapin High School due to the construction.

Fulmer said the security is to provide more supervision of students to ensure their safety while construction is being completed. 

Fulmer anticipates the district receiving $2,345,841.08 in new money from the State based on Senate projections. 

Turner made the motion to approve the budget "contingent upon the State appropriations being approved to support a minimum 2 percent increase to employees and if any reason the state fails to provide sufficient funding, the district may amend this budget with adjustments necessary including removal of approved raises for employees."

Board vice chairwoman Beth Watson seconded the motion. The budget passed 6-1, with board member Kim Murphy opposing. 

Murphy said while she supports the teachers and staff she couldn't support the budget because she wasn't able to documents she requested and answers to all of her questions submitted to Fulmer.

She also questioned the accuracy of financial reports given to the board and said Fulmer's work on the budget was "unacceptable."

"I cannot in good faith support a $150 million budget under these circumstances," Murpy said. 

Board chair Robert Gantt responded to Murphy's statement saying he was appalled by her statements against Fulmer and found it to be harassment. 

Budget highlights

• $3,706,311-2 percent cost of living increase plus step
• $912,318-One percent increase in retirement
• $337,735-Savings from closing the district's warehouse
• $289,713-4.5 teacher reduction due to CATE Center opening
• $1,064,816-Projected new costs for the new high school
• $50,000-McKinney-Vento Act costs to district (transportation)
• $1,081,630-Maintenance of Effort (projected)
• $30,938,843-Education Finance Act (Senate projection)
• Under the district's Technology Integration Plan, a coordinator and three teachers — one for each high school — would be hired. The teachers would serve as technology specialists. A $2,000 supplement would be paid to teacher technology leaders (TTL) in each high school. Currently, each high school has two technology leaders. The technology committee recommends an additional leader at each school. Five support staff — three on the school level and two on the district level — is also proposed in the plan. The proposed cost is $535,394. 
• An additional $100,000 was added to the CATE Center cost for additional startup supplies. Projected annual costs for the center is $1,906,492, which includes utilities, maintenance, an assistant director position, teachers/certified staff (11.5), and support staff (7.5 positions).
• Projected annual new costs for Spring Hill High School, the district's new high school, is $1,064,816 (additional costs).
• Teacher and staff increases by 31.5 positions
• The budget doesn't include a millage increase.
• Total fund balance is $24,646,085. The board's policy requires 8.5 percent be reserved ($12,097,533). A total of $3 million has been assigned to start up cost for the district's new schools; $247,951 for school parking lot maintenance; and $2,935,628 for use in the 2011-2012 fiscal year. There's $6,364,973 in unreserved fund balance. 

View the attached PDF for the general fund budget. 

Check back later for a summary of actions taken and discussions held during Monday night's meeting. 

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