From staff and press reports

In a public budget hearing held July 2 with two non staff attendees, the school district proposed its 2009 budget.

With the rise in fuel costs and other costs the district proposed a budget with increased expenditures and therefore a need for additional revenues.

The Louisville Municipal School District is proposing a 2009 budget with revenues of $25,357,764 and expenditures of $27,575,924. Budgeted revenues will primarily be funded from state sources ($14,379,296 or 56 .71percent). Other sources for revenues include: local ($6,044,015 or 23.83 percent), federal ($4,397,253 or 17.34 percent) and sixteenth section ($537,200 - 2.12 percent). The state mandated the local support contribution to be increased by $99,453 in 2009. The local support contribution was $2,582,971 for 2008; it will be $2,682,424 for 2009.

LMSD Business Manager Phyllis Gronewold explained that based on tax information available at the time of the budget compilation, Louisville Municipal School District anticipates a millage rate increase will be needed. However, when the tax assessor has updated rolls and new tax information is available, amounts and millage rates will be reevaluated before millage rates for the new year are set.

The increased millage will allow the district to cover its increased costs in all areas. The main use of funds will go toward instruction ($14,582,102 or 52 percent). Other large areas are operation and maintenance ($3,398,656 or 12.32 percent) and transportation ($2,235,156 - 8.11 percent).

LMSD employs approximately 450 regular employees and a varied number of substitutes during the school year. For 2009, teachers and teacher assistants will receive increases based on the state and local pay scale; cafeteria workers also have incremental pay scales. The other staff members will receive a 2 percent increase in pay. For all staff, salaries and benefit expenditures will be an estimated $19,338,038 or 70.13 percent of budgeted expenditures.

During the 2007, the board approved reactivating the Building Improvement and Equipment fund. This allows the district to wisely plan for future needs and have funds reserved for building renovation and improvement projects and for capital equipment purchases. The 2009 budget provides for $200,000 to be transferred to the fund from the 16th Section Interest Fund to keep the fund growing for future projects.

The board also approved 3-mill 15 year note to receive $3,300,000 to be used for needed capital improvements. Building and Bus Funds will be pledged over the 15 year time period to go toward the note payments; mills will be added to the tax assessment to fund the remainder of the annual payments.

The 2009 budget provides some increases in funds for utilities and gasoline to cover current rates and to provide for probable increases. The district's cost of gasoline increased by $140,000 from 2007 to the end of 2008 and larger increases are expected.

Due to increased costs, the allocations for supplies to schools were increased as follows: instruction from $35 to $40 per student, library from $10 to $15 per student, counseling from $2 to $3 per student and principal's office from $18 to $20 per student. Additional funds are in the budget for gifted programs, JROTC, Career and Technology programs, and equipment allocations for each school.

In order to maintain the bus fleet, the district aims to purchase several new buses each year. The 2009 budget contains $300,000 for four new buses.

Gronewold noted that the 2009 budget is a very conservative estimate of revenues and expenditures. It reflects an awareness of a volatile local, state and federal economy. The budget will be monitored closely during the year to conserve where possible to have reserves to cover unexpected expenditures and to carry forward to the next year.