BY TRACY LEE TATE
Special to the Times
The Union County School District has drafted its 2024-25 school year tentative budget, which is awaiting final approval by the Union County School Board on Aug. 20, 2024. Some changes in funding sources are the main difference in the new budget, due to some Federal programs sunsetting at the end of September and a slight increase in the state-mandated millage rate charged taxpayers as a part of their property tax.
General revenues are decreased slightly for the coming year. These are funds that come from federal, state and local sources. Federal funding has increased by $12,000, while state funding has increased by a little over $688,160, and local funding has decreased by $1,212,439. Fund balances for the coming year are also lower than last year by $1,936,655. This sets the total for revenues and fund balances at $2,347,769 less than the 23-24 school year.
Special revenue is showing an increase for the new school year. These are funds that are designated for specific uses or programs, coming from federal and local sources. The special revenue fund is slightly more than $1 million more than last year thanks to a much larger carry-over of fund balances.
The big loss is in the area of special revenue from specific government sources, most of which were connected with special funding to assist schools with COVID issues during the pandemic. The programs are ending as of Sept. 30, 2024. They include the Elementary and Secondary School Emergency Relief Fund (ESSER), the American Rescue Plan (ARP), and CARES funds. Last year, these funds totaled $3,575,513. There are none this year. Last school year much of this funding was used by the district to repair roofs, improve or replace air conditioning units and improve ventilation in the schools, costs that are considered to be non-recurring.
Capital projects spending is also down for the new year, with a decrease of $385,830. As with last year, the bulk of the funds will be spent on student transportation services.
The overall total for the 2024-25 school year is less than last year by about $5 million dollars, but the Union County School District is no stranger to working with a “bare-bones operating budget,” called such by District Finance Director Renae Prevatt. She said that some of the issues for the coming year include the increase in the minimum wage (and the compression increases given to employees already making $15 per hour or more) and the increase in the cost of goods and services that has been seen in all areas of the economy since the pandemic. These increases are one of the main motivations for the slight increase in the School Tax cost in the state this year. The increase is so small that it should not cause any hardship to individual taxpayers but the accumulated fund will help provide for the schools increased costs. Prevatt provided an example of the effects of the tax increase.
For a property with an assessed value of $50,606, with a homestead exemption of $25,000, the tax assessed will be on the taxable value of the property of $25,606. Before the increase (last year) the school tax paid on this property was $138.76. Since the increase the cost has increased to $138.81 – an increase of five cents.
Given all the changes in funding amounts, the total budget is down by only about $5 million. Much of this is due to the district’s general frugality, which allows the carryover of fund balances from the previous year. Prevatt said the 2024-25 budget should be sufficient to provide Union County students with the quality education they have received in the past.
“The county is just doing a little belt-tightening due to the decrease in funding – something that happens frequently over the years,” Prevatt said. “As long as we hold the line and work to keep steady as we go, there should be no problems.”
