SIKESTON -- With the district fund balance at nearly double the minimum suggestion, Sikeston R-6 Board of Education members approved a pay raise for district staff in the new school year.
The Sikeston R-6 Board of Education adopted on June 27 the nearly $34-million budget for the new fiscal year, which officially began July 1.
Lori Boardman, director of R-6 business services, outlined the revenue and expenses that will leave the district with a deficit of $892,778. Revenues are projected to be $33,718,453 while expenditures are projected to be $34,611,231.
"Our tendency has always been to budget on the low end and hope for the high end," Boardman said.
A good rule of practice is for the minimum fund balance to be three months of operation expenses, Boardman said.
"If you look at our projection of revenues, three months of operation is going to run about $8.5 million; we have a fund balance of $15.2 million," Boardman said.
Because the fund balance is nearly twice the minimum suggestion, Boardman said that was the only reason the administration could make a recommendation for a raise that shows a deficit on the books.
"It's not a good business practice to deficit spend to fund salaries and benefits, but an evaluation of the budget shows that we have over $525,000 in general equipment and building upkeep that is a one-time cost for the FY17 budget," Boardman said.
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