PURPOSE OF PRESENTATION: Staff seeks approval of the Fiscal Year 2020 (FY2020) Operating Budget.
BACKGROUND/SUMMARY: The Board of Education (BOE) Operating Budget, totaling $637,141,096 includes the unrestricted budget of $558,621,997 and the restricted budget of $78,519,099. This Board item includes three attachments:
(1) Sources of Funds for the Operating Budget
(2) Operating Budget Appropriations by Maryland State Department of Education (MSDE) Categories
(3) FY2020 Detailed List of Expenditure Adjustments
The FY2020 Operating Budget is $7.6 million above Maintenance of Effort (MOE) funding from the Frederick County Government (FCG). The County Council approved its operating budget and associated appropriation to the BOE on May 21, 2019.
The FY2020 state revenues increased by $23.5 million. Increases to state funding are the result of increases in enrollment as well as funding from the Blueprint for Maryland’s Future legislation passed in May 2019.
The first two attachments, the Sources of Funds and MSDE Expenditure Categories, are the documents that require BOE approval. The third attachment is the detailed working file for which the Board has been working from throughout the budget cycle.
PRESENTER(S) & TITLE(S):
Heather Jo Clabaugh, Budget Officer
SUBMITTED BY:
Leslie Pellegrino, Chief Financial Officer
PURPOSE OF PRESENTATION: Staff seeks approval of the Fiscal Year 2020 (FY2020) Capital Budget.
BACKGROUND/SUMMARY: Frederick County Government’s Capital Budget was approved by the Frederick County Council on May 21, 2019. The budget provides construction funds for the Urbana Elementary School Replacement, the new East County Area Elementary, the Rock Creek Replacement and the Oakdale Middle Addition. Funding is also included for thirteen (13) systemic renovation projects.
Due to budgetary constraints, the budget listed for Catoctin High School Pavement Reconstruction and Lighting Replacement project is less than the estimated cost. Surplus funds from the Walkersville High Pavement Reconstruction and Lighting project will be included in a future budget amendment to this project.
There will also be a future budget amendment for the prior year Reserved Appropriations from the State. The Interagency Commission on School Construction (IAC) will meet to approve those funds on June 13, 2019.
The FY2020 Capital Budget is recommended at a total of $82,294,781. This is comprised of state and local funding. The projects listed in the attached budget summary are part of the comprehensive six-year plan that is updated annually.
PRESENTER(S) & TITLE(S):
Heather Jo Clabaugh, Budget Officer
SUBMITTED BY:
Leslie Pellegrino, Chief Financial Officer
PURPOSE OF PRESENTATION: Staff seeks approval of the Fiscal Year 2020 (FY2020) Food and Nutrition Services Operating Budget.
BACKGROUND/SUMMARY: The proposed FY2020 Food and Nutrition Services Operating Budget is $13,418,122. The revenues are $474,052 more than the FY2019 budgeted revenues of $12,944,070. This increase is due to an estimated 2% in federal reimbursement rates and an increase in ala carte sales. This proposed budget does not include a price increase to breakfast or lunch prices.
The recommended expenditures are $13,418,122, which is $474,052 more than the budgeted expenditures for FY2019 of $12,944,070. Changes from the budgeted FY2019 expenditures include an increase for the salary resource pool, an increase for health insurance, and an increase for equipment. The budget reflects an increase in disposable paper products due to Maryland House Bill 109 and Maryland Senate Bill 285, prohibiting polystyrene food service products, effective January 1, 2020.
The Food and Nutrition Services Fund’s current fund balance is approximately $1.8 million.
PRESENTER(S) & TITLE(S):
Heather Jo Clabaugh, Budget Officer
SUBMITTED BY:
Leslie Pellegrino, Chief Financial Officer
PURPOSE OF PRESENTATION: Staff seeks approval of the Fiscal Year 2020 (FY2020) Self-Insurance Fund Budget.
BACKGROUND/SUMMARY: The proposed FY2020 Self-Insurance Operating Budget is $110,700,149. The budget is $6,417,412 or 6.15% over the approved FY2019 budget. The proposed budget includes a 2% medical premium increase.
The recommended expenditures are $110,700,149, which is $6,417,412 more than the budgeted expenditures for FY2019 of $104,282,737. Included in the expenses is a contribution to the OPEB Trust Fund calculated based on audited FY2019 financials. Monies in excess of 125% of the target reserve will be contributed to the OPEB Trust. Included in Health Claims Paid is an estimated $1,941,800 to cover the insurance cost for new retirees and $1,221,900 to cover the insurance cost for new employees. Administrative contracts are expected to decrease as the run-out period for claim processing with the prior Medical Administrator ends June 30, 2019. The Stop Loss Insurance contract, effective July 1, 2019, is currently out to bid and is anticipated to increase significantly. Within the Wellness line item there is an additional $140,000 for increased initiatives. To balance the FY2020 Self-Insurance Fund Budget, $3,598,426 of fund balance reserve will be utilized.
PRESENTER(S) & TITLE(S):
Heather Jo Clabaugh, Budget Officer
SUBMITTED BY:
Leslie Pellegrino, Chief Financial Officer