Etowah schools facing deficit

The Etowah County School system is  facing a $1.2 million deficit.

The Etowah County Board of Education last week voted to approve the $74 million budget.

The three factors that will have a major impact on the budget, according to Superintendent Alan Cosby, are the opening of Sardis Middle School, an interest payment to Schnedier Electric and an increase in insurance costs for support personnel.

When a new school opens, Cosby said, it must operate a year before the state reimburses any costs.

“It will be fiscal year 2017 before we get full funding,” he said.

The school is scheduled to open next year at a cost of about $492,000 for one year, .

No estimate of additional building maintenance costs have been budgeted.

Health insurance costs have increased for everyone. Legislation covered the cost to help offset the increase for teachers, but the increase for support personnel was not fully covered.

That will cost the school system about $452,000 more than last year in overall  insurance costs.

The biggest increase in the general fund expenditures is $692,749 for  debt service

for interest to Schneider Electric.

The school board has signed a contract with Schneider that should substantially reduce the energy and operational costs for the schools, while improving facilities and infrastructure.

“By paying the interest costs up front, we will save $782,000 in interest on overall project costs,”