FILE: DC
ANNUAL OPERATING BUDGET
The East Baton Rouge Parish School Board shall approve an annual budget for the general fund and each special revenue fund for the fiscal year July 1 to June 30, no later than September fifteenth of each year. The School Board shall submit a copy of its adopted budget to the State Superintendent no later than September thirtieth of each year, as well as a general summary of the adopted budget. The summary shall include projected revenues, expenditures, and beginning and ending fund balances. In addition, no later than September 30th of each year, the School Board shall post the most recent budget and general summary on its website.
It shall be the responsibility of the Superintendent and designated members of his/her staff to prepare the operating budgets for submission to the School Board. The budgets shall be prepared on forms in accordance with such rules and regulations as may be prescribed by statutes and by the State Superintendent of Education. Said budgets shall be submitted to the School Board for the purposes of revision and approval prior to submission to the State Superintendent.
The School Board shall cause to be published a notice in the official journal stating that the proposed budget is available for public inspection no later than fifteen (15) days prior to the date for budget adoption. The notice shall also state that a public hearing on the proposed budget shall be held specifying the date, time and place of the hearing. The proposed budget shall not be considered for adoption or otherwise finalized until at least one public hearing has been conducted on the proposal. The notice shall be published at least ten (10) days prior to the date of the first public hearing and may be published in the same advertisement as the notice of availability of the proposed budget and the public hearing.
The School Board shall certify completion of all action required by publishing a notice in the same manner as provided above.
No budget shall be approved where expenditures exceed the expected means of financing. The budget shall be reviewed periodically and such financial reports as the School Board directs shall be prepared and presented to the School Board by the Superintendent and/or his/her designee.
FUND BALANCE
The Superintendent and the Business Office are authorized to develop safeguards to keep the East Baton Rouge Parish School System from having financial problems and to improve the financial condition of the School System. To achieve these results, a minimum General Fund – Fund Balance goal of 15% of total revenues is needed for the following reasons:
Cash Flow – A fund reserve
ensures that the School Board has enough cash on hand for payroll
and other obligations to be made timely because (1) property tax revenues
are not received until January, February, and March of each calendar
year, and (2) most state and federal grants require the School Board
to make payment first before the grant will make reimbursement.
Unforeseen Events – Reserves
often act as a contingency to meet unbudgeted and unexpected needs,
thus allowing time to make permanent changes to the budget and preventing
fiscal problems from needlessly worsening.
Financial Security – A fund
reserve demonstrates a sign of financial strength and security to
banking and financial institutions allowing the School Board to borrow
funds and sell bonds when schools need to be built or renovated at
more favorable interest rates, thus saving the taxpayer money.
Daily Operation – Reserves
often act as a contingency during a financial adjustment period of
declining revenues and/or increasing expenditures.
Compliance – A fund reserve
would ensure that the School Board is compliant with the General fund
Balance as a Percentage of General Fund Revenues Risk Factor for the
State Department of Education’s Financial Risk Assessment.
Interest Earnings – Additional revenues can be earned by invested idle funds.
DAILY OPERATIONS
The adoption of the original budget and the adoption of all subsequent amendments by the School Board constitute the authority of the Superintendent and administrators of the School Board to incur liabilities and authorize expenditures from the respective budgeted funds during the fiscal year. The Superintendent and the Business Manager have the authority to enter into routine and necessary contracts or agreements to carry out the general business operations of the School Board.
ASSURANCE OF EQUITABLE FUNDING
The East Baton Rouge Parish School Board shall provide funding for education through local, state and federal sources and shall use funds for the benefit of all students in the district, in compliance with all regulations by state and federal agencies granting such funds. The School Board shall allocate such funds equitably and in the interest of all of the East Baton Rouge Parish Public School students. This ensures equivalence among schools in the provision of curricular materials and instructional supplies. It is the policy of the East Baton Rouge Parish School Board that it maintains an equitable and fair equivalence among the schools in the allotment of teachers, administrators, and auxiliary personnel.
Revised: June, 2010
Revised: October 19, 2023
Ref: La. Rev. Stat. Ann. §§17:88, 17:89, 17:89.1, 39:1301, 39:1302, 39:1303, 39:1304, 39:1305, 39:1306, 39:1307, 39:1308, 39:1309, 39:1310, 39:1311, 39:1312, 39:1313, 39:1314, 39:1315
Board minutes, 4-15-10, 10-19-23
East Baton Rouge Parish School Board