District has a small deficit, and it may continue in future, Board of Trustees is told
The Taft City School District Board of Trustees approved a budget for the 2019-20 fiscal year next week that has a small deficit and it may be the first of a series.
Chief Business Official Steven Gragg told the Board last week that the District will be spending more than it takes in for the next several yeas.
"It's a pretty safe bet expenditures are going to be higher than revenues," Gragg said.
The District is losing some extra funding that came through the Local Control Funding formula that it has had for several years and will have to rely only on cost of living increases while the District's expenditures continue to increase, Gragg said.
He outlined the proposed budget for the Board and it approved it Wednesday.
It calls for total revenues of $30,027,861 and expenditures of $30,021,861 with a deficit of $5,864.
The TCSD will have a funding balance of $6,236,97 at the end of the fiscal year stating July 1, but projections for next year foresee a significant drop by the end of 2020-2021.
Gragg's projections call for an ending balance of $5,982,9129 at the end of the 20-21 fiscal year.
Two-thirds of the budget goes for personnel costs - $10.4 million for certificated salaries, $4.4 million for classified salaries and $9 million for benefits.
Most of the District's revenues will come through the Local Control Funding Formula, which includes property taxes supplemented by state funds.
Gragg projects the District will receive $24.88 million based on its ADA and a three percent cost of living increase of $489,898 over last years.
He estimates the TCSD will get just over $2 million in federal money, $2.232 million in federal money and $1.3 million in funding from other local agencies for services, interest and other sources.