May 5, 2020 at 5:30 PM - Bradley County Board of Education Work Session

Discussion:  Chairman Weathers opened the meeting and turned the floor over to Dr. Cash.  Dr. Cash said that one of the major goals for this budget is our people because that is what makes our schools great .  In these times when we are unsure about sales tax and the state being in distress,  we just kept focusing on our people trying to be sure we could take care of them.  She applauded the Business Department for their hard work on this budget and keeping the focus on our employees.  Even with all the uncertainty, we have a budget that takes care of all our people.    

Mrs. Willcutt began her budget presentation by stating that the objectives for the budget were to provide EVERY CHILD in BRADLEY COUNTY SCHOOLS the best possible educational opportunities and to maximize the use of available resources.  She went on to say that she didn't need to tell them what a challenging time this is for us as a district, community and country for that matter.  She told them that back in February when the Board set budget priorities, she thought that this might be the easiest budget she had worked on during her tenure, but due to COVID-19 all of that went out the window and instead, balancing the budget has become a hugh challenge for the district.  She told Dr. Cash and the Board, especially Chairman Weathers how much she appreciated their support through this process.  She also told them that she appreciated the Mayor's input in determining the best guestimation on Local Revenue numbers.  

The sources of revenue are State Revenue (BEP) and Local Revenue (Property and Sales Tax).  The State Revenue (BEP) is true to it's name.  It is basic and what our district provides is advanced in comparison.  BEP funds 468.83 positions and Bradley County has 637.5 positions.  The certified positions NOT funded would cost the district about $11.75 million dollars.  When the state calculates the number of positions they will fund, they multiply that by the salary component (which is raises) are funded at 74.06% for the positions BEP funds.  Local Revenue covers unfunded positions in the BEP formula and also the remaining percentage of 25.94% required as local match in the funded positions.  Property Tax revenues are being projected based on historical data along with the current tax assessment, current year actuals, and estimated growth.  Projecting Sales Tax revenue is much more complicated this year due to COVID-19.  

Mrs. Willcutt explained to the Board that the Fund Balance is like a savings account or "Rainy Day" fund.  The state does not recommend using a fund balance to fund recurring expenses such as salaries and benefits. The most appropriate use is for one-time expenses like we have used over the last few years - capital outlay and technology refresh.  Another appropriate use of fund balance is to get us through an unforeseen occurrence that has not been planned for in the operating budget.  Because we are in unprecedented times, she recommends that the fund balance not be used in the FY21 budget.  She predicts that on July 1, there will be approximately 8 million dollars in the fund balance that equates to about 10.4%.  She also told them to keep in mind that one month of salaries and benefits cost about 5 million dollars.  

The budget highlights are:

• Maintain current positioins 
• Fund a 4% Health Insurance increase
• Apply Legacy certified retirement rate down by .36%
• Move WVHS and Prospect to the Custodial Service and WVHS to Lawn Service
• Fund Capital Outlay to fund our ESG payment and Technology refresh, with hopes to fund capital outlay needs approved by the committee if revenue exceeds current budget projections.

Mrs. Willcutt when through the budget and explained items that had a rather large change (either up or down) in the budget.  Mr. Bryson and Mr. Frazier ask about cutting the step raises.  The cost to put them back into the budget would be around 490,000 dollars.  Chairman Weathers told the Board that step raises were the last thing to be taken out and he felt like that if the revenue came in more than they expected, the Board would look at the possibility of adding them back in later.  The goal is to protect each employee.   Several of the Board members commented about how grateful the Food Service employees have been with continuing to be paid thru COVID 19.  Mrs. Lee told the Board that Bradley County Schools has managed our money well and we are fairing better than a lot of businesses and Districts.  

Dr. Cash gave an update on Summer School.  Bradley County will receive 1.6 to 1.9 million dollars through the CARES Act which will be used for Summer Camps.  The program will run for 2 weeks beginning July 24th.  There will be 10 students and 2 teachers for each grade level for each elementary school.  May 18th there will be a webinar for the does and don't of the act.  This is one time money - no recurring.  It must be spent by September of 22.  Dr. Cash thanked the Technology Department for their help during this time.  They created hot spots at each school that parents could access.  Scott Webb, Technology Director, told the Board that access to devices have been a problem but Bradley County is working on that.  Connectivity at home is another problem that he needs their support with talking to government officials, representatives and leaders about beginning to think about internet as a UTILITY.    

Teacher Appreciation Week is next week.  We hope that you saw through this meeting that you are important to Bradley County Schools and the Board of Education.  We care and we want to take care of our teachers.  On behalf of the Bradley County Board of Education, congratulations on Teacher Appreciation Week.  We appreciate what you do and how you do it with our students.  You do make a difference, Chairman Weathers stated.