Shelby City Schools Board of Education hears bright financial forecast

SHELBY ― Unlike a number of school districts, Shelby doesn't have to worry much about its budget in the near future.

The Shelby City Schools Board of Education approved the district's five-year financial forecast at Monday's monthly meeting.

Shelby is projected to have a cash balance of just less than $17.2 million for fiscal year 2024, and that is the lowest projected total in the five-year forecast. The projected high is $19.6 million in fiscal year 2027.

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"Shelby City School District will see an increase in general property tax revenue due to a recent reappraisal; residential values increased 22.8% and commercial property increased 14.1%," Treasurer Beth Lykins said. "The district is patiently waiting for a conclusion to the Rover Pipeline appeal."

Lykins said 48% of the district's operating revenue comes from the state, with the remaining 52% coming from local sources such as real estate and income taxes.

"Expenditures continue to increase for the district with health insurance increasing the fastest," she said. "ESSER grant funds are coming to a conclusion as of September 2024 and those expenditures that were expended from the ESSER grant will move back into the general fund."

The Elementary and Secondary School Emergency Relief Funds have been provided to help safely reopen and sustain the same operation of schools and address the effects of the COVID-19 pandemic on the nation's students.

Shelby City Schools has plenty of days it could operate without getting revenue

Lykins said a good way to evaluate a school district's financial health is by its true cash days, the number of days the district could operate without receiving any revenue.

She said board policy Determination of Budget Priorities recommends a three-month (90 days) operating cash benchmark and if possible, four months (120 days) to six months (180 days). Shelby is forecasting a true cash days higher than 250 for the forecast years FY24-FY28.

"In conclusion, due to the district's heavy reliance on state and local funds, any state budget changes and/or legislation impacting these revenues needs to be closely monitored," Lykins said. "Expenditures of the district are one area that the district can control. The district will continually evaluate and make sound management decisions."

Those decisions benefit all of the district's students, including those featured in Monday's student spotlight. The last one of the year focused on grades pre-kindergarten through 2.

Willow Edwards was honored for preschool, along with kindergartners Jasmine Ferguson, Alex Hummel, Parker Shearer and Charlotte Tuttle; first-graders Beckham Carver, Rowan Diglaw, Aubrey Gilger, Brycen Hamilton, Adalynn Lindsey, Keiyan Porter and Elijah Turpin-Smith; and second-graders Olivia Cains, Gracelynn Edwards, Layla Ousley, Jameson Roub and Jacob Sexton.

Also recognized were intervention specialists Lindsey Nardo and Kerri Scarbrough and second-graders Addilyn Kuhn and Reilly Luce.

"I'm going to miss this portion of our monthly meeting during the summer months," Superintendent Michael Browning said, adding it was "easily" the best part of the agenda.

At the other end of the school cycle are 150 seniors, who were approved for graduation, set for 3 p.m. Sunday.

High school students visited Europe in April

Board members also heard a report on the high school's trip to Europe. A total of 28 students and five teachers toured Germany, Austria, Liechtenstein and Switzerland in April.

"It's an invaluable experience that you just don't get from a textbook," teacher Katie Wills said.

One of the highlights for her was riding in a cable car some 7,000 feet above the Swiss Alps. The students also visited the hallowed ground of Dachau Concentration Camp, the longest such operating camp for the Nazis during World War II.

Sophia Long, a junior, pointed out most people they saw were either walking or riding bikes instead of driving. The food contained no artificial flavoring. Her favorite country was Germany.

In other business, the board

• listened to committee reports on buildings and grounds, as well as safety;
• approved a long list of coaches for fall sports; and
• accepted a $10,000 donation from the Shelby Athletic Booster Club for a batting cage for the softball program.

mcaudill@gannett.com

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