Teachers across the Vestavia Hills City School system will receive a 2% pay increase as part of a statewide salary raise, Vestavia Hills Chief Schools Financial Officer Courtney Brown said.
Toward that end, the state of Alabama gave the school system a little bit more of an allocation to cover those raises, which, along with a projected 1% increase in property tax revenues, means projected revenues for the fiscal year 2022 are roughly $3.6 million more than they were in 2021, increasing from $82 million in 2021 to $85.6 million in 2022.
“It’s a really good, solid budget this year,” Brown said. “Last year we had a lot of COVID-19 uncertainties.”
Because the Vestavia Hills school system does not have as many COVID-19 related expenditures as other school systems, that helped keep expenses down for the new fiscal year, Brown said. Expected expenditures total $82.6 million, $3 million less than projected revenues.
The surplus will be used to help build up the system’s fund balances, which are required by the state to be able to fund the school’s operations for one month, a cost of about $6.5 million. However, the Board of Education wants to have two months on hand, a total of about $13 million. The system currently has about $9.3 million in reserves, Brown said.
While there is still some concern with COVID-19 as the Delta variant makes its way through the country, Brown said the school system is focused on keeping kids in school.
“We’re in a better place this year,” Brown said. “We know how to operate in this environment.”
With the state passing its largest-ever education budget this year, Brown said it helps ensure schools receive what they need to provide outstanding education to their students.
The system has also received $1 million in state-allocated funds to make up for lost instructional time due to the pandemic, with that money going toward summer camps and after-school programs to help students who have fallen behind in the past year, Brown said.
While the state has funded the increase in raises, the number of state-funded teacher units dropped by four this year, meaning those positions have to be covered by the school system, Brown said. However, the state gave the school system a one-time $400,000 teacher stabilization grant, allowing them to help cover the cost of taking on those units themselves, Brown said.
Instructional services make up the largest portion of the budget, at 57% of expenditures. Brown said that includes paying nurses, contractors, paying for professional development services and administrative roles like librarians and principals. Instructional support is the second-highest expenditure at about 19%, according to the budget provided by Brown.
The school system anticipates about $46 million in local revenues, $39.5 million in state revenues and $75,000 in other revenues.
The school system also has a five-year capital plan, which this year will focus on phase one of energy improvements recommended by Schneider Electric.
Patrick Martin, the assistant superintendent of operations and services, said this year, the $5 million phase one work includes upgrading mechanical systems, lighting and improving various rooftops throughout the system. The phase two option is currently being considered, and the school system is looking for funding sources, Martin said.
In addition to energy upgrades, the school system will also make improvements to its safety and security systems and operations, Martin said.
