Jefferson City school administrators expect to get 1.3 percent more money in the 2015-16 school year, and they expect to spend 1.4 percent more than in the current business year that ends next Tuesday.
The seven-member board of education Monday night unanimously approved the proposed, $85,757,204 spending plan, which is based on an anticipated $86,757,530 in revenues.
The budget includes $7.2 million in capital improvements already under way this summer, including a major renovation of East School, construction of secure vestibules at several buildings, some renovations at the high school and Nichols Career Center complex - including a new Culinary Arts classroom at Nichols - and asphalt resurfacing projects throughout the district.
Facilities Director Bob Weber reported work is being done on 11 of the nearly 20 buildings the district owns.
Chief Financial Officer Jason Hoffman said the district should have a $20 million fund balance when the current budget year ends next week, which is above the target.
"We're a little bit unusual in that we get almost 50 percent of our budget from local property taxes," he told the board. "It's not a very popular tax - everyone has to pay it at one time, right at Christmastime, unlike sales tax which accumulates throughout the year and you don't really notice it.
"But one of the nice things about property tax is it's very stable - much more stable than sales tax or state revenues."
The state contributes about 23 percent of the district's revenues.
Nearly 80 percent of the expenses go to employee salaries and benefits.
Board President John Ruth said the most significant part of the new budget is "10 straight years of increasing pay for teachers (and other employees) and six consecutive years of no changes for (employees) and what they pay toward their health insurance plan - and no changes in the plan itself."
The budget doesn't include money for building a new elementary school or high school, because neither the board nor district patrons have approved those proposed expansions.
But the board approved hiring the Stifel Nicolaus company as financial advisers to help district administrators plan for possible tax or bond issue proposals to take to voters.
"We sent it out to seven vendors and got five responses," Hoffman said. "I think there were three that we could have chosen and not gone wrong."
Stifel's fees will be slightly higher than some of the other proposals, Hoffman acknowledged.
"Fees, while they are important and were, certainly, a major consideration, are going to be relatively small compared to the interest rate that a firm will be able to get for us, by their marketing and distribution capabilities," he said.
"Just a small percentage change in interest rates would far outweigh the increase in fees."
The district won't have to pay anything for the service unless "we actually enter into the debt market" if voters approve a buildings proposal, Hoffman added.
"They obviously think we can pass an issue," he said.
Board members spent 80 minutes in a work session about future facilities, without reaching any decisions.
Ruth said the board generally supports the Long Range Planning Committee's proposal to build a second public high school, a new elementary school and to add classrooms at Callaway Hills Elementary.
"Tonight we talked more about when could we take those plans to voters, knowing that November is the first opportunity," he said, "so we started discussing the pros and cons of November or a later date."
To hold a special election in November, the board must notify the county clerks in Cole and Callaway counties by Aug. 25.