Manatee school board OKs $889.4 million budget

The School District of Manatee County celebrated financial stability with the approval of its 2018-2019 budget on Tuesday evening, when the school board touted more than $889.4 million in expected revenue and an estimated fund balance of nearly $57.7 million.

Board members unanimously approved Dave Miner’s motion to approve the budget, which was seconded by Charlie Kennedy.

The district’s projected general fund — used for classroom supplies, utility bills, salaries and other daily expenses — increased by 12.05 percent, or $50.8 million, when compared to last year’s actual year-end numbers. Sixty-nine percent of the general fund, more than $324 million, is budgeted for salaries and benefits.

The district is levying the highest amount of taxes allowed by law, its financial ratings continue to rise and it maintained a B grade from the state. Its budget is bolstered by a voter-approved extension of the half-cent sales tax, and the successful passage of a one-mill increase on property taxes, which is expected to generate more than $37 million

Fifty-three percent of the budget is for operations, and the second highest expense (26 percent) is for capital projects.

In a letter presented to the school board, Superintendent Cynthia Saunders said the district made strides after it faced an $8.9 million deficit in 2013.

“The increased funding will allow the District to continue on the path to financial resiliency, educate 48,686 students, fill 210 vacancies, and further improve upon the educational experience for all students,” the message states.

However, current and future projects may challenge the district’s finances. When comparing the initial budgets for 2017-2018 and this year, the district’s budgeted revenue is about $5 million higher. But the budgeted expenses and transfers increased by more than $58 million, from $773 million to more than $831 million.

Its budgeted fund balance — the excess of assets and estimated revenue — dropped from about $111.4 million last year to $57.7 million this year. The largest decrease was in the capital fund balance, which goes toward construction and other projects

Along with the renovation of several existing schools, the district is spending tens of millions of dollars on the construction of three new schools, each slated to open in August 2019.

Fifty-five percent of capital funds are budgeted for new construction, and another 19 percent is budgeted for remodeling, renovation and “other.”

The district’s budgeted revenues, expenses and fund balances are still drastically higher than in past years. And, according to Saunders’ letter, the district has met or exceeded the state-mandated fund balance for the last five years.

Funding from the Florida Education Finance Program increased by less than one percent, netting the district an additional $3.2 million. Money from the state is restricted to certain uses, and much of the increased funding is for school safety and mental health resources, a result of the Feb. 14 shooting at Marjory Stoneman Douglas High School, in Parkland.

State funding may increase if more Manatee County students are discovered during a count in October and February. If the district faces a shortfall in its budget, it would have to draw from reserves.

Sometimes student enrollment is less than expected, causing a decrease in state funding. The state could also reduce its own budget and allocations if it collects less sales taxes than expected.

And sometimes the actual number of high-needs students who enroll in Manatee schools is less than the projected number. While the district may receive $4,600 for an average middle school student, it could receive up to $19,000 for a student with additional needs.

The state’s block grant for Exceptional Student Education, programs for students with disabilities, dropped about $503,000 from last year. And, according to the district, it received $52.7 million to maintain reduced class sizes, a decrease of $930,000.

Manatee’s school district expects to spend nearly $143.2 million from its general fund to maintain those class sizes. The expense resulted from of a constitutional amendment that was passed in 2002, limiting class sizes for core subject areas, according to the district.

While district finances appear to be stable, public trust was damaged by constant budget increases in past construction projects and in the recent software upgrade, which started at a budget of less than $10 million before it doubled in cost.

That 2018-2019 school year presents an opportunity to repair and maintain the trust of Manatee County residents.

“This is a robust budget,” Scott Hopes, the board chair, said at Tuesday’s meeting. “It was prepared during a pretty significant transition.”