Board OKs proposed $600M spending plan

The Oklahoma City School Board on Monday night approved a proposed budget of nearly $600 million for the coming fiscal year, which begins July 1.

The $598.6 million spending plan is based on projected federal, state and local revenues and includes and operating fund of $434.7 million (more than half is devoted to salaries and benefits); a capital fund of $74.1 million (bond projects); and a debt repayment and insurance fund of $89.8 million.

By comparison, last year’s proposed budget was slightly less, about $597.7 million. The operating budget, which combines the district’s general, business and nutrition funds, was about $401 million.

Jean Bostwick, the district’s chief financial officer, characterized the FY 2019 budget as flat.

“Basically, it is reflective of the legislative impact for new revenues and new expenses,” she said following the 5-0 vote. “We are anxiously awaiting specific information from the state Department of Education about what the impact will be for Oklahoma City Public Schools.”

Bostwick was referring to new compensation legislation that raised taxes on cigarettes, motor fuels and some oil and gas production to provide pay raises for teachers and support personnel.

The district is projecting $124.4 million in state aid, an increase of about $22 million over last year. The increase, though, is tied to the pay raises and based on the district’s average daily attendance, which has dropped by more than 2,000 students since FY 2016.

Prior to the legislation passing, the district projected about $3.4 million less in funding from the state based on declining enrollment, according to figures provided by the district.

“So really, at the end of the day, we’re still looking at $3 million less in state aid than we had last year to spend,” said Mark Mann, who chairs the panel’s finance committee.

“It’s good that we have money to help pay for the pay raises and the benefits, but at the end of the day it still doesn’t solve the fact that we’ve got fewer students going into next school year on our count then we had in previous years.”

The district is projecting 38,125 students in FY 2019, down from 40,942 students in FY 2014 and 40,472 students in FY 2016 (not including charter school enrollment).

“Although there are positive signs like increased state funding, our district is still facing tough times because of declining enrollment,” board member Rebecca Budd said. “I believe the board will rely heavily on our finance team to help it navigate the tough decisions ahead.”

The board will meet again July 2 to ratify the new budget and renew dozens of contracts, leases and agreements for the new fiscal year.