Frequently Asked Budget Questions

Enrollment, Inflation, and per pupil wealth impact state aid. More detailed information can be found in the Report on State Aid.

Non-restricted revenues (i.e. non-grant revenues) have remained essentially the same in recent fiscal years. Expenses are continually evaluated to determine areas for potential reduction in costs. More detailed information is available in this document.

Over recent history (the last 15 years), the county has averaged providing the school system with a little more than 50% of the county’s operating budget. Their current operating plan approved last spring, if followed, would just meet this level in fiscal year 2014 before accounting for the increased contributions for pensions required by the State. In the years beyond this, the operating plan calls for no increases in operating funding except for additional required pension funding. Even with the increased costs for pension included, the county forecasts only providing 45.7% of their income by fiscal year 2018. Click here to see several charts showing this decline in the school system’s share of total county funding in visual and numeric formats.

Maintenance of effort is a part of State law governing funding provided by the county government to the school system. It essentially sets a floor, or minimum funding level, that the county must provide to the school system. The county may not decrease funding, when calculated on a per pupil basis, from year to year. This means that in times of increasing enrollment, the total minimum amount of funding increases; conversely, in times of declining enrollment a county can decrease total funding provided to the school system. For further information, please click here.

The major factors in the calculation of state aid are as follows:

• County Wealth – funding distributed by formulas inversely proportional to local district wealth (personal property; income and real property for railroads, utilities, businesses and individuals)

• Enrollment – funding is adjusted based on a per pupil formula for changes in enrollment

• Inflation Factor – funding is adjusted annually to reflect changes in the cost of providing goods and services

For further explanation of each of these factors, please click here.

This is a complex area and there are a number of strategies in use throughout the system. They are discussed in this document.

The Payroll Office has eliminated the printing and mailing of direct deposit payroll vouchers. Employees are able to access a virtual image of their payroll voucher through the Employee Access Center website, which maintains these electronic images, as well as W-2s, for employees to access at their convenience at any time. In addition to printing and voucher stock, postage for mailing the documents to temporary employees (hourly or substitute workers) is saved. By combining this initiative with the mailing of payroll checks for the limited number of employees not taking advantage of direct deposit, special courier runs to every school and cost center each payday have been eliminated. It is estimated that this saves $43,000 per years.

The Finance and Purchasing Departments have initiated and/or expanded several initiatives to generate additional revenue for the school system. These revenues go back into the general fund and are budgeted alongside traditional funding sources in the non-restricted operating budget. These initiatives are discussed in this document.

Fund balance reserves result when revenues exceed expenditures for a given fiscal year. CCPS fund balance reserves are governed by Board of Education Policy DBDA which states that fund balance reserves shall not accumulate to exceed 5% of the current year operating budget (e.g., the current limit is approximately $15 million) and fund balance reserves shall only be used to offset one-time, non-recurring expenses. 

We recognize that maintaining a fund balance reserve makes good business and operational sense. A reserve account can help to minimize the impact on operations of the school system when unexpected, one-time expenses occur. For example, an unexpected spike in utility costs, fuel for busses, or medical insurance claims could be covered by, and would be good uses of, fund balance reserves. 

Conversely, current budget shortfalls caused by anticipated permanent revenue reductions and permanent inflationary expenditure increases are not good uses of fund balance reserves. Due to the one-time nature of reserve funds, prudent fiscal management dictates that these funds shall only be used to offset non-recurring expenditures. 

We focus primarily on personnel items because between salaries, wages, and fringe benefits, 82% of our operating budget expenditures are tied to personnel. We have reduced and will continue to look for efficiencies in the other areas of the budget, but due to the size of the reductions we’ve had to make, we’ve been forced to reduce positions. For further information, including areas in which the school system has made reductions and a look at the portion of the budget tied to personnel, please click here.

A furlough is the placement of an employee in a temporary, non-duty, non-pay status (i.e., time off without pay) for budget-required reasons. Organizations cut costs through the use of furlough days in order to deal with reduced budgets. Furloughs allow an organization to reduce labor costs temporarily without layoffs.   

The drawback to furloughs is that they do not permanently reduce the budget. They are best used as a stopgap measure to deal with unanticipated revenue downturns after the fiscal year has begun.   

Carroll County Public Schools has considered furloughs and determined that they are not the best strategy at this time. Due to impending permanent revenue reductions, we believe permanent expenditure reductions are a more appropriate action. 

Furloughs remain an option in the future. 

The Food Service Program receives restricted federal funding or reimbursement for each breakfast and lunch served to children. Most of the funding is for those meals served to children eligible for free or reduced priced meals. This funding, specified for the nutrition of children, is restricted to the food service program budget.

Food Services operates as a separate budget within the school system where the only direct local funding received is the money parents pay to the cafeteria for meals and snacks sold. From the parents’ payments and the federal per meal reimbursement the program funds all direct costs which include food, supplies, and equipment purchases and all salaries and benefits for the food service program staff.

Yes, thanks to a variety of revenue enhancing and cost reducing strategies implemented, the food service program has been able to operate as a true enterprise fund and has a viable fund balance.

The Food Service Fund Balance is similar to the General Fund Balance.  The Food Service Program should always maintain an adequate fund balance but no greater than the amount needed to operate the program for three months. It is, in a sense, the savings or safety net for the program. It allows the flexibility to purchase much needed equipment, manage unforeseen program costs, and absorb lost sales days due to inclement weather or emergencies.