Parkway e-News Story

2006-07 Budget Approved with $2 Million Shortfall

The Parkway Board of Education unanimously approved the district's $186 million proposed budget for the 2006-07 fiscal year at its June 21 meeting. With inflation expected to run between 3 and 3.75 percent next year and in spite of continuing cost containment measures, overall operating costs are expected to exceed revenues by approximately $2 million. The district has cut more than $18 million from the annual budget since 2002. In 2006-07, operating revenues (excluding debt service, student activities and bond funds) are projected to increase to $184.09 million (+1.44 percent) while operating expenditures will increase to $186.09 million (+1.3 percent). Over the past five years, revenues have increased approximately 1.25 percent annually as compared to an inflation rate of 2.73 percent. Revenues from the 2004 bond issue continue to fund facility and technology capital replacement needs. This is the fifth time over the past seven years in which revenues have fallen short of expenditures, requiring the district to use its operating cash account to cover the difference. Parkway is requesting a 37-cent tax increase on the November 7 ballot, part of which is designated to prevent future spending deficits caused by inflation, declining VST enrollment and frozen state funding. The new budget is also posted on the Parkway web site at: http://www.pkwy.k12.mo.us/finance/index.cfm Tax proposal information can be found at http://www.pkwy.k12.mo.us/taxplan