TUPELO – The Tupelo School Board approved the district’s $88.3 million budget during its regular meeting Tuesday.
The budget will not require a tax increase and will likely lead to a slight decrease in taxes. Because the district finished paying off two shortfall notes on money it borrowed in 2009 and 2010, its debt millage will decrease by 0.8 mills.
The district’s largest expense will be instructional, on which it will spend $49.6 million, or 56.18 percent. That includes $43 million on salaries and fringe benefits and $6.56 million on other expenses.
Other large expenses include $10.4 million for facilities construction services (11.82 percent), $8.6 million on operational services (9.7 percent), $6.1 million on debt services (6.88 percent) and $4.1 million on non-instructional services (4.67 percent). The district would spend $3.4 million on school administration (3.89 percent) and $2.1 million on general administration (2.38 percent).
The budget would be funded by $77.9 million in revenue, meaning the district will spend some of its fund balance. The reason for the discrepancy is that it will spend construction money from its fund balance that it received in past years, finance director Linda Pannell said.
Revenue sources include $32.6 million (41.9 percent) from local taxes, $32 million from the state (41.2 percent), $9 million from the federal government (11.6 percent) and $4.1 million from other sources.