The Pattonville Board of Education on June 11 approved a $113.4 million operating budget for the 2024-2025 school year. This is primarily due to additional capital funds received in 2023-2024 for HVAC improvements throughout the district.
The 2024-2025 budget was established based on several factors:
- Property value increase - Pattonville's revenues are based on the assessed value of property in the district as set by the St. Louis County assessor's office. Property values are assessed every two years, with 2024 being a non-reassessment year. However, total property values increased significantly in 2023 due to reassessment. Due to the significant increase in assessed values in 2023, significant protests to reduce these values can be expected. Local property tax revenue is budgeted to increase 1.5% and generate approximately $1.9 million in operating property tax revenue. Protested assessed values continue to remain a challenge for all of St. Louis County. For 2023-2024, the collection of delinquent property taxes is projected to result in a $1.0 million payback of settlements made in favor of the taxpayer. Therefore, a conservative $1.0 million payback of settlements is also budgeted for 2024-2025.
- Revenues - Local revenue sources account for 82%, or $96 million, of the district’s total operating revenue budget, and current property taxes make up $84.1 million of this revenue. Only 11% of the district’s budget comes from state funding. Next year’s budget represents a revenue decrease of 1.06%, or $128,770, at the state level. Total state revenue is estimated to be $12.1 million in 2024-2025, most coming from the Foundation Formula, the state’s formula for allocating education funds. Under this formula, Pattonville continues to be a hold harmless district, receiving $5.1 million per year or approximately $829 per student. The hold harmless designation means Pattonville received a higher level of funding under an older state formula than the current formula provides. As a result, Pattonville is held to the same level of funding it received in 1992. Pattonville receives the 511th lowest level of funding from the state out of 520 districts. The remainder of state revenue includes transportation, which is fully funded for the third straight school year since 1991, and early childhood special education, which is reimbursed at 100% of the district’s allowable costs. Federal revenue will decrease by 48.8%, primarily due to the ending of American Rescue Plan Elementary and Secondary School Emergency Relief (ARP ESSER) funding, meaning Pattonville will only see 4% of funds come from federal resources.
- Staff salaries - Salaries and benefits are the largest expenditure in the district budget and, in 2024-2025, will account for $90.2 million, or 80%, of the total district budget (excluding debt service and bond-funded construction). Pattonville is entering its final year of a three-year agreement in which teachers and support staff receive an overall 3.7% increase in salary and benefits each year. However, the budgeted cost to the district is lower due to staff retirements and resignations, many of them due to a separation incentive plan (SIP) offered in the 2021-2022 school year. Those accepting the incentive were replaced by staff with fewer years of experience and lower salaries. As a result, $500,000 of the projected savings is being used to make market adjustments to specific positions where Pattonville is experiencing staffing shortages. Overall, however, salaries will increase a total of 2.61% for 2024-2025, which is below the 3.7% salary schedule increase due to staff turnover as well as reductions in custodians and food service positions that have been eliminated in the 2024-2025 budget due to attrition.
- Total benefits - Total benefits will increase by 5.86% based on the district’s insurance allowance, taxes and contributions to the retirement system. The increase is primarily due to staffing vacancies and the 2023-24 budget being revised down; however, the 2024-25 budget has held these positions open and budgeted accordingly. The allowance for eligible staff to select health and dental benefits has been flat for eight out of the last 12 years, and is budgeted to remain flat for the 2024-2025 school year.
- Debt service fund increases due to construction - Work on Prop S, Pattonville’s $111 million no-tax rate bond issue began in the 2022-2023 school year with most of the expenses being architect fees and stored materials from early bid packages. The debt service fund will decrease $3,858,160 for the 2024-2025 fiscal year due to the $5 million principal payment on the 2024 issuance per the debt service schedule. Expenditures in this fund are for scheduled payments of principal and interest on the district’s outstanding general obligation bonds. The projected Prop S phase 2B debt service payments on the $20 million of the $111 million in general obligation bonds authorized by voters in April 2022 are not included in this analysis and are anticipated to be sold in August 2024. Debt schedules will be revised once the sale is final. By law this fund can only be used for this purpose, and cannot be used to fund operations like salaries. This fund does not follow a typical fiscal year, and any deficit or surplus at a fiscal year end results from fluctuating principal and interest payments. Based on the current $.49 debt service tax levy, the district will begin the 2024-2025 fiscal year with $9.8 available in the debt service fund balance. Currently the district maintains approximately one year of principal and interest payments in fund balance to accommodate the future debt payments from Prop S.
- Food service - An estimated $2.1 million is expected from the National School Lunch and School Breakfast Program payments. Sales from food service is expected to remain flat from the 2023-2024 school year. The budget is based on conservative levels of expanded participation as the district struggles to return to pre-pandemic serving levels due to staffing shortages. The goal of the program for the 2024-2025 school year is to be fully staffed and bring full menu and a la carte options back. The district bid and renewed the food service management contract in June 2024 recommending Chartwells include transitioning all new hires to be hired as Chartwells employees to increase staffing levels. Pattonville continues to be one of only seven districts in the area to offer free breakfast.
- State funding of transportation - Based on state statute, the state is expected to reimburse districts for 75% of their eligible transportation costs. During the 2022-2023 school year, and for the first time since 1991, the state paid its full portion of transportation costs. This resulted in $1.2 million in additional revenue for Pattonville during the 2022-2023 and 2023-2024 school years that has been used to fund transportation in the past. The state has budgeted for full funding during the 2024-2025 school year as well.
- Operating funds forecast - Local revenues are the largest source of revenue, and reassessment will occur in 2025-2026 and 2027-2028. Based on current conservative projections, the district will likely experience budget deficits beginning in 2026-2027. Projections are subject to changes in local property values and other factors such as health insurance and student enrollment.
Find out more.