Explaining the $22 million budget of the Pea Ridge School District to three new School Board members was one of the main reasons school officials held a study session Thursday, Sept. 8. Adam Yager was the only one of the three new board members to attend the meeting.
Two of the five board members were incumbents. One of them, Mindy Cawthon attended the meeting. Veteran board member John Dye and new board members Jessican Branham and Sarah Saragusa were not in attendance.
School district superintendent Keith Martin, assistant superintendents Anne Martfeld and Kevin Ramey, treasurer Nathalie Brunell and executive director of teaching and learning Dana Tabor were present.
"Explaining the budget was the whole purpose of this meeting," Martin said. "We have three new members. It's a big deal!"
Cawthon said she found the explanation of the budget "really helpful."
"My philosophy in budgeting is to budget revenues low and expenses high," Brunell said.
"In our operating fund, we have restricted money and we have unrestricted money," Brunell explained. She said the restricted money includes categorical funds such as professional development, English as a second language, ALE and ESA (student enrichment); state funding for special education; grants and pre-kindergarten tuition and grant.
Martin said a $60,000 grant was just received for the pre-kindergarten program.
Brunell said unrestricted funds include state foundation funding and student growth. Currently, the state foundation funding is based on 2,333 students, last year's average of the first three quarters of the year. The growth funds are usually received in December and June, she said.
The student enrollment currently from kindergarten through 12th grade is 2,449.
"I don't budget student growth; it's not guaranteed," she said, explaining that it is "also kind of an emergency reserve fund" when additional money comes in.
Brunell explained that property taxes are based on millage which is 47.2 mills of the assessed value.
"It can be an estimate because you never know about collections. You are guaranteed 98% of first 25 mills.
"We've been averaging about 96% collections. So that's what I budgeted for," she said.
"Salaries and benefits are the majority of the expenses. That's where we put the most of our money. We invest in our people," Brunell said, explaining that the state mandates how much the district is to pay on the employees' health insurance,.
"It will go up at half the year and next year we will have the full hit... it hits the district's budget, but also keeps employees' portion lower," Martin said.
Yager asked about the revenue labeled donations. Brunell said there are different sources, but most recently it has been a grant from the Walton Family Foundation.
She also explained that "tuition" is what the school pays Arkansas Tech University and NorthWest Arkansas Community College for concurrent classes for Pea Ridge High School students.
The building fund comes from three sources -- money transferred when there are reserves, loans and partnership funds.
The child nutrition fund revenue comes from federal meal reimbursements, private pay meals and a state match. The funds are limited and must be used for the kitchen equipment, staff salaries and benefits and food. It may not be used for furniture in the dining room.
Federal funds revenue includes special education funding (Title VI-B, federal pre-k; ARP ESSER special education); Title I, improving the academic achievement of the disadvantaged; Title II, improving teacher quality; Title IV, student support and academic achievement; ARP ESSER, covid funding; Medicaid, therapists, special education needs; ARMAC, health and wellness; DHS funding for pre-K, prekindergarten education; and career and technical education funds. She said "federal funds can only be used for the purpose intended by law."
Martin said the budget was scheduled to be presented to all board members in the regularly scheduled School Board meeting Monday, Sept. 12.
Cawthon asked why the revenue and expenses for sports or activities are not on the budget.
Brunell explained that all activities' funds are "purely restricted" and all stay within each area's budget. "Any type of fundraiser, it stays within the group," she said. She said costs of fuel for buses to out of town games is listed in the transportation budget.
"After you make the purchase of the bus, the biggest expense is the people themselves," Martin said.
"As a public school with a $22 million budget, we have to account for every penny," Martin said.
"As we continue to grow, things that we are looking at from student involvement -- FACS, band -- where do we get the funds to grow programs to keep kids involved?" asked Cawthon.
Martin said adding activities has to be "need driven" and officials do plan to add more activities as the need requires. He said many of the programs work concessions at various games in order to raise funds for their programs.
Cawthon asked Brunell whether she keeps the books for all programs.
"Each activity account has its own fund within the main fund, so that's how we keep track," Brunell said. "There's state required financial information that will show line item by line item."
"Nathalie does an amazing job making sure we're operating in the black," Martin said. "We purposely don't budget student growth. It allows for that cushion. Sometimes we have a system failure that insurance will not cover. There's only one way to cover -- cash on hand."