At the heart of the discussion was the Chief Financial Officer’s presentation, which delineated the various components of the budget. The general fund combined, encompassing the operating budget, adult education, and referendum, accounted for approximately 47% of the total budget at $11.3 billion. The capital projects fund was the second-largest at $444 million, about 34% of the budget, mainly due to the increased borrowing for school construction.

The CFO highlighted the need to adopt the tentative millage rates to leverage community contributions for state funding. Emphasis was placed on maximizing discretionary millage to receive additional state funding and to address the impact of property value increases on local funding. This action is anticipated to reinforce the district’s financial status and support the strategic planning for the fiscal year.

The meeting delved into a detailed breakdown of the budget allocations. The general fund combined held the majority, while the capital project fund, special revenue fund for food service, and special revenue for other purposes were significant components of the budget. The internal service fund, which includes the self-funded health insurance plan and general insurance, represented 7% at $88.4 million. The Debt Service fund accounted for about 2% at $27.7 million.

The budget also underwent scrutiny based on objects and functional areas. Salaries and employee benefits constituted about 39% of the budget at $459 million. Other significant expenses included purchase services, energy services, materials and supplies, and a notable 36% or $427 million allocated for capital outlay. Instruction and instructional support were identified as major functional areas, with a 40% budget allocation.

The superintendent addressed several fiscal challenges, including uncertainties related to enrollment due to choice programs, the costs of maintaining technology hardware, aging buildings, vehicles, buses, and expenditures related to safe schools mandates and inflation. The increase in the budget was primarily attributed to an expansion in the capital projects fund, a direct result of a bond obtained in the previous year.

The board’s action sets the stage for a series of work sessions aimed at a careful review of the budgetary allocations and objectives.

In addition to the budget and millages, the meeting also served to remind attendees of the forthcoming administrative briefing and work sessions. The next administrative briefing and work session was scheduled for August 1st, 2024, which would be accompanied by a special board meeting. Subsequent administrative briefings and work sessions are slated for the weeks following, with a focus on further scrutinizing the budgetary details and operational strategies.