The State budget for FY 2019 – finalized after both the Board of Supervisors and the School Board balanced and adopted their respective budgets – included $868,877 in additional funding for the Schools.  To allow time to understand the financial impacts of the final State budget on School Operating Fund and the General Fund, the Board of Supervisors adopted FY 2019 appropriations that were $1 million less than the budgets adopted for both the School Operating Fund and the General Fund. 

With time came understanding of the Schools’ priorities for the additional State funding, as well as funding needs associated with the mandated Children’s Services Act program and School Resource Officers.

Schools

At a joint work session between the two boards on August 14, the Schools presented an overview regarding their priorities for the additional State funding (see table below):

However, more recently, Schools staff indicated that they are seeking full appropriation of the original budget to ensure that they are made whole for the budget as it was originally adopted.

Children’s Services Act (CSA)

There has been steady increase in the number of children in foster care and in the number of children in the school system whose educational needs cannot be met in the public school setting, but who must be served in accordance with the Children’s Services Act (CSA).  As such, CSA costs in FY 2018 exceeded budgeted costs by $1.9 million.  At this time, staff anticipates the FY 2019 CSA budget for mandated services being $1.65 million short.  CSA costs are shared by the County and the State with certain reimbursement rates being in place.  It is anticipated that additional revenue from the State would fund approximately $890,000[1] of the added costs and the County would have a local cost share of approximately $760,000.  This would be on-going funding and such on-going funding is not available in the contingency or elsewhere within the budget without making cuts to the approved budget.

School Resource Officers (SROs)

The County applied for a grant for four additional SROs and has been notified that one of the four will be awarded, leaving three of these additional positions to be funded locally.  The Sheriff’s Office reports that January 2019 is the soonest it could hire and implement three additional SROs, and that no new vehicles would need to be purchased in FY 2019 for these three additional SROs.  The mid-year cost of hiring and equipping three SROs is $141,000.

The FY 2019 Budget set aside $143,450 to be the local match for the three SRO grant positions for which the County applied but did not receive.  This funding could be used to fund the $141,000 cost of three mid-year SROs.

To meet the varying needs identified, staff recommends that the Board takes the following actions:

1. Appropriate the full $868,877 in State funding to the Schools.
2. Appropriate $131,123 of the original $1 million in local funding that was withheld from initial appropriations.  The combination of item #1 and this item #2 totals $1 million in appropriations to the Schools and makes the Schools whole for the budget as originally adopted.
3. This “frees” $868,877 in local funding for the County’s use on the $760,000 needed for CSA costs and to meet other local needs that may arise as FY 2019 progresses.
4. From the $143,450 included in the adopted General Fund budget as a local match for a grant for the three SRO positions that were not awarded, allocate $141,000 for hiring and equipping three mid-year SROs.  Additional funding to cover the full year costs of these three positions will need to be included in the FY 2020 base budget.
5. Appropriate the original $1 million withheld from the General Fund.

The budget adjustment and appropriation attached reflect these recommendations.