The Franklin County Finance Committee has rejected the School Board’s $47.04 million budget request, leaving the school system to amend the amount it will be asking for to balance its 2019-20 fiscal year budget.
The School Board is expected to reconsider the amount when it meets at 6 p.m. on Monday at the system’s administration building, then forward the new request for the Finance Committee to consider later.
Director of Schools Stanley Bean said that the system is in a position where it might have to dip down to dangerously low reserve-fund levels, depending on what amount the County Commission will eventually approve.
He added that the reserve funds are used to pay for unexpected expenditures, such as unforeseen capital building projects. Reserve funds have also been used by school systems to meet payroll obligations when tax collections have come up short.
The school system could meet its budget requirements by expending $2.4 million of its $4.6 million reserve fund total.
However, that would leave the system with only $2.2 million going into the next fiscal year’s budget.
The situation would spell a $200,000 shortfall if the 2020-21 expenditures remain at the same $47.04 million with no additional funds being appropriated by the county.
The school system’s budget lists that it would be receiving $15.9 million from Franklin County property taxes with about $700,000 coming from licensing fees and other local sources.
The system receives $28.1 million from the state of Tennessee with most of the money provided through the state’s Basic Education Program.
The system also receives $172,000 from the federal government, setting the combined revenue at $44.67 million — $2.37 million shy of the $47.04 million initial request.