The Salem Grade School Board approved a budget with a projected deficit of $844,930 at its meeting on Monday. Superintendent Dr. Leslie Foppe says this is a conservative budget that estimates low revenues and high costs and is sure to be amended. The deficit is a result of corporate replacement tax revenue decreasing by 34% and costs going up across the board.
“A lot of it is an increase in salaries, and also just with everything going up, the CPI going up and the cost of living going up, it hits us in every area,” Foppe said.
The budget includes deficits of $644,979 in the education fund, $30,526 in operations and maintenance, and $233,685 in transportation. Remaining fund balances are $4.7 million in education, $930,000 in operations and maintenance, $899,000 in transportation, and $593,000 in working cash, with an overall fund balance of $7.1 million.
To bring in additional revenue, the board approved placing $3.5 million into a twelve-month certificate of deposit with People’s National Bank to generate $140,000 in interest. The board also approved the issuance of $1,160,000 in General Obligations Refunding School Bonds. Foppe says the bonds are a means to save the taxpayers money and will result in $100,000 not being levied in the future.
The board also approved the hirings of Kandace Dagg as cook, and Allison Simmons, Destiny Wimberly, and Beth Ann Parker as Paraprofessionals.
