Executive Summary
The analysis of the budget of the York County School Division for the next two years, i.e., FY 2020 and FY 2021 is carried out in this report. It is noted that there are eight different types of expenditure accounts of the school division, including instruction, transportation, maintenance/operations, food services, technology, insurance, workers’ compensation, and administration and attendance.
The analysis shows that the school division allocated the most substantial portion of its revenue to Instruction (74.6%) in FY 2019, which covers salaries paid to teachers and instructors and also the cost of resources used in classrooms. Furthermore, it is indicated that the division incurred significant expenditures on technology and operations and maintenance in FY 2019. The budget analysis indicates the school division expects an increase in all expenditures in the next two fiscal years, i.e., FY 2020 and FY 2021.
The budget of the York County School Division for the next two fiscal years, i.e., FY 2020 and FY 2021 is analyzed in this report. The division’s revenue by source indicates that it received 51.9% of revenue from state funding, and 9.4% is contributed by the Federal government. Furthermore, it generates 37.6% of revenue from local appropriation operations, and grounds and 1.1% from local operating miscellaneous, and a very small percentage is collected from location appropriation-transfer from revenue stabilization fund (The York County School Division, 2020, p. 4).
The school division utilizes these revenues for funding different instruction programs and other activities, including administration and attendance, operations and maintenance, transportation, technology, food, insurance, and workers’ compensation. The total expenditure incurred by the school division in FY 2019 was $159,486,458 (The York County School Division, 2020, p. 10).
Furthermore, the budget expenditure amounts for the next two fiscal years, i.e., FY 2020 and FY 2021 are $168,729,295 and $174,442,605 respectively (The York County School Division, 2020, p. 10). The analysis of the division’s expenditures is provided in the following:
Instruction
- A key component of the school division’s operations is to provide instruction facilities to students in schools located in York County. Different schools in the country offer elementary, secondary, middle, high, and other programs. This category of expenditure makes up the most substantial proportion of total expenditures allocated by the school division in managing schools in York County. Further analysis shows that each program has different instruction subjects that are assigned expenditure budget for the next two years.
- The budget indicates that the York County School Division allocated 74.6% of its total expenditures to Instruction (The York County School Division, 2020).
- The breakdown of Instruction expenditures indicates that the highest spending was on elementary-regular education as the division spent $29,192,572 in FY 2019. It spent $21,642,239 on high school-regular education (The York County School Division, 2020).
- The total expenditure on regular education was $64,448,552 in FY 2019, and the budgeted amounts for the next two years are $67,399,787 and $69,381,877 (The York County School Division, 2020). It indicates that the school division plans to increase regular education expenditure by 4.58% in FY 2020 and 2.94% in FY 2021.
- The review of the budget indicates that the school division spent $12,952,370 on special education in FY 2019, and it plans to allocate $14,036,909 in FY 2020 and $15,427,980 in FY 2021 (The York County School Division, 2020).
- The school division also spent $2,343,156 on career/technical programs in FY 2019, and the budget set for FY 2020 is $2,526,644 and $2,647,975 for FY 2021 (The York County School Division, 2020).
- The total expenditure for gifted education programs was $443,345 in FY 2019 which are expected to be increased to $461,336 in FY 2020 and $475,572 in FY 2021 (The York County School Division, 2020).
- The division also operates other programs which incurred an expenditure of $4,431,540 in FY 2019, and it is expected to increase as the budget values set for FY 2020 and FY 2021 are $5,681,369 and $5,405,797 respectively (The York County School Division, 2020).
- It is noted that the total expenditure for instruction support programs was $17,228,250 which is expected to increase to $18,217,361 and $19,319,358 in FY 2020 and FY 2021 (The York County School Division, 2020).
Transportation
This category of expenditure relates to the transportation facilities provided to students by the school division, which include operating school buses that pick and drop pupils from and to schools located in York County. Moreover, these expenditures include payments by the division for maintaining vehicles such as trucks, tractors, and staff vehicles. In addition to these, the division also spends a significant amount on “repairing vehicles, replacing vehicle parts, cleaning, painting, greasing, fueling and inspecting vehicles for safety” (The York County School Division, 2020, p. 103).
- The budget indicates that the York County School Division has allocated 5.8% of its total expenditures to Pupil Transportation (The York County School Division, 2020).
- The summary of program budgets indicates that there are two elements included in Public Transportation are Vehicle Operation Services and Vehicle Maintenance Services.
- The division spent $8,164,214 in FY 2019 and its budget for FY 2020 is $8,388,252. It indicates that the division expects to that its expenditure on Pupil Transportation will increase by 2.744% (The York County School Division, 2020).
- It is noted that the school division had estimated to spend $6,866,389 for vehicle operation services in 2020 and $7,186,326 in 2021 as compared to the actual spending of $6,600,822 in 2019 (The York County School Division, 2020).
- The budget report indicates that the division’s actual spending on vehicle maintenance services was $1,563,392 in 2019 and its project expenditure is $1,521,863 in 2020 and $1,631,110 in 2021.
Maintenance/Operations
This category of expenditure includes management and direction, building services, grounds services, vehicle services, and warehouse/distribution services. The school division purchase services from contractors, which include repair and maintenance, building service contract maintenance, and other contractual services. It implies that most of the maintenance work is carried out by contractors, who are listed on the approved panel (The York County School Division, 2020).
- The Chief Operating Officer of the school division authorizes all such expenditures according to the budget plan.
- The budget indicates that the York County School Division has allocated 7.7% of its total expenditures to Operations & Maintenance (The York County School Division, 2020).
- The division spent $11,414,851 in 2019 and its budget for FY 2020 is $8,388,252 and $11,578,280 for FY 2021 (The York County School Division, 2020). It indicates that the division expects an increase in its maintenance/operations expenditure in the next two years.
- Building services include inspection of school buildings, repairing, and ensuring a safe environment for students and teachers.
- Ground services are contracted to specialized service providers who have signed an agreement with the County.
- Warehousing services include warehouses that are used for storing equipment, furniture, and other supplies.
Food Services
The school division also provides meals to students in schools. Food services are integral parts of school operations as students are provided healthy, meals. Schools have to ensure the highest quality of food and also the cleanliness of the dining area. The school lunch program is in accordance with the guidelines provided by the USDA. Furthermore, the school division sold an average of 4,352 lunches and 1,1137 breakfasts in 2019. The school division has contracted a private company, SODEXO to prepare and delivery food services to students in different schools (The York County School Division, 2020).
- The summary of program budgets indicates that the York Country School Division spent $3,838,009 in 2019 (The York County School Division, 2020).
- The budgeted values of food services expenditure are $42,80,500 in FY 2020 and $4,336,441 in FY 2021 (The York County School Division, 2020). The projected increase in food expense is in line with the rising costs of ingredients and food preparation.
- It could be stated that food expenditure is directly related to the number of students enrolled in schools. Therefore, the estimated increase in the food budget is not affected by this variable.
- The growth rates in the next two years are 11.5% and 0.118%. It is also noted that the expected expenditure amount is $4,285,500 in FY 2020, which is higher than the budgeted value (The York County School Division, 2020). It implies that the school division will cover the possible additional cost by paying for it from its reserves.
Technology
Technology is also a vital component of the school division’s budget. The adoption and use of technology in schools of York County and its maintenance incur significant expenditure. This category of expenditure relates to the use of technology for classroom instruction, instruction support, administration, and operations and management, and other programs, including grants.
- The budget indicates that the York County School Division has allocated 6.8% of its total expenditures to Technology (The York County School Division, 2020).
- The highest proportion of total technology expenditure is allocated to classroom instruction, which incorporates the development and maintenance of interactive platforms for students and teachers.
- It is noted that the school division reported that it incurred $9,633,936 on technology-related services in FY 2019 (The York County School Division, 2020). Furthermore, the expenditure on technology is projected to increase in the next years as the school division aims to invest more in developing and implementing technologies for in-class and online teaching.
- The budget analysis shows that the division will spend $10,159,271 in FY 2020 and $10,320,908 in FY 2021 (The York County School Division, 2020). It indicates that the division’s spending on technology will remain significantly high in the next two years.
Insurance (Health & Dental)
Insurance plans, including health and dental, are offered to faculty members, administrative staff, and other key staff members. The purpose of this expenditure is to give medical coverage to all staff members. The fund is managed through the operating fund and premiums paid to insurance companies for its employees. Employee benefits indicate they are given health, dental, group life, and VRS hybrid disability insurances.
- The budget indicates that the York County School Division has allocated 5.8% of its total expenditures on Pupil Transportation (The York County School Division, 2020).
- The school division works with different insurance companies to cover accidental damages to its properties, including buildings and personal assets.
- It is noted that the division only made an insurance recovery of $108,139 in 2019 (The York County School Division, 2020).
- The health services provided to the school personnel comply with OSHA regulations.
- The summary of program budgets indicates that division spent $17,257,096 in 2019 on insurance, and its budget for FY 2020 is $18,366,250 and $18,482,415 for FY 2021 (The York County School Division, 2020). The estimated growth rate in technology expenditure is 0.6% per year.
Workers’ Compensation Fund
This category of expenditure relates to the savings fund managed by the division for its employees other than teachers. It implies that this fund covers salaries in case of a shortfall in the division’s revenue.
- The budget indicates that the York County School Division has allocated a small value of funds to Workers Compensation (The York County School Division, 2020).
- The summary of program budgets indicates that the division placed $301,037 in this fund in 2019 (The York County School Division, 2020).
- It is noted that the division is likely to increase its contribution to the workers’ compensation fund in FY 2020 and also maintain the same level in FY 2021.
- The budgeted value of workers’ compensation fund is $538,000 for next two year, i.e., FY 2020 and FY 2021, which indicates a 78.72% increase in its value (The York County School Division, 2020).
- The possible reason for the increase in its value is the current coronavirus pandemic which is affecting the ability of schools to carry out their regular teaching activities, generate revenue, and also a sharp increase in unemployment claims.
Administration and Attendance
This category of expenditure covers payments that are made by the school division to board members and management executives. Furthermore, it includes payments made for communication services, human resources, fiscal services, health services, psychological services, and speech/audiology services (The York County School Division, 2020).
- The school board has one chairman and four board members.
- The services provided by board members include setting and managing the activities of the school board and key decision making about schools’ operations.
- The executives of the school division are responsible for its overall administration. They are responsible for making recommendations for school policy and its subsequent implementation and monitoring.
- The board and executives are actively engaged in communications with school employees, students, and parents.
- The human resource department is responsible for hiring, training, and managing employees and teachers.
- The program budget indicates that the district school division has allocated 4.9% of its total expenditures to Administration/Attendance and Health (The York County School Division, 2020).
- The summary of program budgets indicates that the division spent $7,030,102 in 2019 on different services (The York County School Division, 2020). This included compensation made to board members for attending board meetings.
- It is also noted that the school division is expected to spend a higher amount on administration, attendance & health in the next two years, i.e., $7,280,675 in 2020 and $7,710,566 in 2021 (The York County School Division, 2020).
Reference
The York County School Division. (2020). Fiscal year 2021 proposed annual budget. Web.