Florence County School District Three Proposed Budget July 1, 2010 – June 30, 2011 Annual Citizens’ Meeting May 11,

1. Florence County School District ThreeProposed BudgetJuly 1, 2010 – June 30, 2011Annual Citizens’ MeetingMay 11, 2010 Donna D Sullivan, CGFO Senior Director of Finance

2. Largest of all funds - Total proposed budget of $21,181,470. • House and Senate proposed base student cost (BSC) is $1,630. This budget is estimated on BSC of $1,580. • Approximately 85% of the proposed budget is employee salaries and fringe benefits; six certified positions and five classified positions have been cut, and three furlough days are built into the budget to be taken if necessary. • FY 2009/2010 BSC proposed at $2,034 is currently funded at $1,764.98, down $269.02 due to state budget cuts. General Fund

3. Funding Sources Total $21,181,470

4. Balance of $1,166,061. • Recommended at 5% of the General Fund budget – currently is 5.3% of amended FY 2009-2010 budget of $21,976,727. • Reasons for maintaining fund balance: • Mid-year budget cuts, • Emergency expenditures due to disasters, • As a general cash flow tool: • Covers State and Federal grant expenditures that have to be paid up front and then are reimbursed. • Maintains operations while awaiting the receipt of property taxes, which are received primarily during the months of December to March. Fund Balance > General Fund

5. Balance of $3,788,260. • Used for ongoing capital improvements and other general expenditures. • Recommended net transfer of $1,813,598 back to the General Fund to balance the budget. Fund Balance > Local Building Fund

6. Florence School District Three continues in sound financial condition, with the fund balance in excess of recommendation by generally accepted accounting principles. • No general millage increase requested for proposed budget for FY 2010-2011 beyond what is authorized by law for inflation and growth. • Questions?? Summary