Written by Lynn Kwilasz, Chief Financial Officer
The Valparaiso Community Schools completed the annual process that establishes its operating budgets when the school board adopted the 2012 budget on Oct. 18.
While the school year runs from August through June, the state of Indiana runs on a July-through-June fiscal year, and the VCS financial year runs January through December. Together, those varying time lines along with state and local regulations determine the money available for VCS to operate the entire school system -- from employing our teaching and instructional staff, to maintaining our buildings, to paying our bills, to driving our buses, and everything else that we do to educate our students.
The budgeting process for Indiana public schools is set by statute. Funding for public schools is primarily determined by a prescribed state formula and by the limits of the property tax system. In other words, public schools are not allowed to simply tax the local taxpayers and ask the state for whatever amount of money we decide is needed to run the school system. We must work within these statutes, rules and formulas.
Public school budgets are made up of several operating funds. Each fund has a specific purpose and a specific funding source.
The General Fund is the largest and most versatile fund. It is used to pay instructional staff salaries and benefits, purchase supplies, pay utility bills and administer the school system. General Fund money comes from the state, and the amount is based upon the number of students attending VCS.
The other operating funds are: Debt Service, Capital Projects, Transportation Operating, and Bus Replacement. These funds receive revenue from local property taxes. As their names imply, each fund has a specific purpose for which it can be used.
The money received from the state and from local property taxes varies each year. Unfortunately, the current trend, like the overall economic trend, has been a decrease in funding. Locally, the property tax caps further limit the money available for the tax-supported funds. And, the state formula has changed in such a way as to generate less money for the General Fund.
Over the next few months, VCS will be working to address this decreased funding by determining ways to reduce operating expenses. This effort will involve everyone in VCS working together to continue to provide a quality educational experience for all VCS students.