Dade County Schools CPA Russell Raney revealed during a special called board meeting on July 23 that Dade schools are facing a 10% budget cut for FY2021.
Because of the cuts, Dade County Schools will face a budget deficit of over $1 million. However, Raney said that no significant cuts or changes were made to next year’s budget compared to last year.
“We’re not required to make any significant cuts to the budget,” Raney said. “We’ve actually been able to add some positions to help during the COVID-19 pandemic.”
However, Raney admitted that DCS is not thrilled to be in the negative financially.
“Nobody likes to be in a deficit,” Raney said.
DCS is expected to spend $20.2 million from the General Fund and make a total of $19 million in revenue.
Staff salaries will cost $18 million after benefits and takes up 89.3% of school expenses. Raney said that the employer match percentage decreased from 21.14% to 19.06%, which will keep $371,000 in the budget.
The full budget sees the General Fund make up 62% of the FY21 budget, with local taxes contributing to 31% and “other sources” providing the final 6.6%.
Raney said that with the new budget setup, DCS should end 2021 with 12% or 1.4 months of reserve funding left.
“It’s good that we’ve been able to maintain the reserve up until this point,” Raney said.
The School Board has the option of rolling back the millage rate. Dr.Sandra Spivey said that if this happens, ad valorem revenue will fall, the reserve budget will decrease to 11% and equalization funding could be affected down the road.
If the board accepts the current tax digest, three public hearings will be required.
The next meeting to discuss the budget will be on Aug. 17.