School districts across the country have been taxed by trying to keep funding for schools at adequate levels in the midst of a shaky economy. For the Pell City Board of Education, their new budget reflects the uncertainty of the economy, but also looks for ways to help put the district on a more secure financial path.

Tuesday night, Chief Financial Officer Tanya Holcombe presented a first look at the FY2012 budget, which was well-received by members of the Pell City Board of Education.

“We’d like to have more money — who wouldn’t — but we’re in good shape,” said Superintendent Bobby Hathcock. “We’re just looking for a real good school year, and I don’t see any reason why we can’t have one.”

Holcombe reported that while enrollment is projected to have increased by 23 students over last year, the funding for 4.42 teachers was lost due to the increase of class divisors by 0.45 students.

“Because the divisors were raised, we adjusted that last spring as school let out to deal with that change,” Hathcock said.

Transportation saw an increase, Holcombe said, but after being hit hard by cuts in the past, there are still local dollars making up the state transportation funding shortfall.  

At the national funding level, the school district saw a $145,000 increase in Title I money, while Title II took a $35,000 hit. Nearly $1 million in ARRA money and $6,000 in vocational education funding were also cut, leaving the district to find ways to close the funding gaps.  

Locally, a total of $7.1 million is budgeted to be spent, generated through things like sales and ad valorem taxes. While ad valorem is expected to stay at the same levels, Holcombe said there has been an increase in sales tax revenues for the school system over the past year, which helped make up a shortfall.

But while funding can be scarce in some areas, overall, the financial future for the district seems to be a positive one.  

While the textbook budget is still very low, Holcombe noted a $135 student material allowance per teacher. While it isn’t much, she said it’s a step in the right direction.

If all goes according to plan, the district is slated to end FY2012 with $327,024 in excess revenue. Added to a budgeted $691,057 excess from FY2011, the school may have more than $1 million in their general fund balance at the end of the next fiscal year.

While the district is mandated to have $2.2 million in fund balance, the budget will bring them closer to their financial goals.

“It’s good to be building that reserve after three years of proration. This is a solid budget to get us through the next year,” Hathcock said. “But, there’s a fine line between building those reserves and meeting the needs of our people, and I feel that we are meeting the needs of people.”

A second budget hearing is scheduled for 5:30 p.m. Sept. 13 at the CenturyLink Building, with their regular school board meeting to follow.