SerpApi.Org
Fayette County school officials said Monday a projected deficit of $17.8 million will likely shrink to between $5 and $10 million as the district closes its books.
Budget documents included in the Fayette County Board of Education Monday agenda showed a projected shortfall of $17,775,254.88 for the fiscal year that ended June 30.
Interim Executive Director of Financial Services Amy Smith told board members as the district works through outstanding bills and incoming tax revenues, “we expect this deficit to shrink based on looking at history and our outstanding purchase orders.”
Smith said they are hoping that means a budget shortfall of between $5 and $10 million.
School finance officials have warned the district would likely end the year with a shortfall.
School finance officers for the district reported during a July 8 Fayette County School Board Finance and Accountability committee meeting that a prior-year deficit would mean more cuts to this year’s tentative budget.
Interim Chief Financial Officer Kyna Koch has previously said the amount of the current-year shortfall likely won’t be known until September, after the district’s bills have been paid and all tax revenues are collected. It takes roughly 60 days to close out the books, she said.
The district announced earlier this year it had discovered its finances have been misstated for decades.
A negative balance in last year’s books will mean more cuts, school finance officials have warned.
The district approved a tentative $711.3 million budget in May that included $20 million in cuts, the elimination of 120 positions and cuts to staff work days. To help it with cash flow, the board has also approved a $95 million short-term loan.
Smith said Monday the district has used $30 million of that $95 million. It has invested the remaining more than $65 million to use at a later date.
