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Budget Hearing: Chief School Financial Officer Presents $231.3M Proposed FY24 Budget
September 8, 2023
Hoover City Schools (HCS) District Chief School Financial Officer Michele McCay presented the District’s $231.3M proposed Fiscal Year (FY) 2024 budget during the first of two scheduled budget hearings. The FY24 budget runs from October 1, 2023, to September 30, 2024.
Here’s a breakdown of the total proposed FY24 expenditures:
General Fund - $177,632,283
Special Revenue Fund - $25,585,590
Debt Service Fund - $12,686,465
Capital Projects Fund - $13,628,142
Fiduciary Expendable Trust Fund - $1,803,471
McCay says some facts in preparing next year’s budget included allocations based on an Average Daily Membership from September 2022. Due to a decrease of only 66 students from 2021 to 2022, the District maintained the same amount of earned units and funding for instructional support.
Teachers received a $100 increase for student materials from $900 to $1,000. There was an increase in salaries and benefits with a 2% legislative raise and an additional year of experience. The proposed FY24 budget allocates 75% of the General Fund spending toward instruction. An additional 20 new A/C buses were purchased for the transportation department fleet renewal, which will make 100% of the route buses for students equipped with A/C. Those new buses are expected to arrive in October 2023.
Some of the concerns shared by McCay include:
• Stable student enrollment district-wide
• Special education funding is not enough to meet the needs of students with disabilities
• Continued increase in Maintenance of Effort
• Attracting and retaining highly qualified teachers
• Federal funding decreasing; student needs increasing
• Projected inflation on revenue stream
• Continued residential growth
$14.5M in capital projects are planned for Hoover schools in 2024, and some of those projects are listed below:
New Playground (Shades Mt. Elementary, Deer Valley Elementary, Brock's Gap Intermediate)
Theater Upgrade (Spain Park High)
Building Addition (Transportation)
Additional Parking (Hoover High)
HVAC Project (Riverchase Elementary)
Athletic Field Upgrade (R.F. Bumpus Middle)
HCS is pleased to have completed all capital projects without incurring additional debt since 2007. McCay says with a projected ending fund balance of $108.1M, HCS will end FY24 with 7.3 months’ reserve.
McCay says it is important to take note of the following key points:
• The timing of revenues and expenditures has a huge impact on how the financial statement looks from one year to the next
• The economy drives our revenue stream
• Salaries and benefits are a reflection of the degrees held and years of experience employees bring to Hoover City Schools
• HCS has not expensed more than we are taking in
• HCS is using savings (rainy day fund) for major capital projects
• The district has not incurred additional debt since 2007
The second budget hearing before the Board votes is scheduled for Tuesday, September 12, 2023, at 4:30 p.m. before the regular Board meeting. Here’s a link to the budget hearing presentation.