The Jefferson City Board of Education approved a budget amendment and the fiscal year 2022 preliminary budget Monday.
Revenue is $7.7 million more than expected, and expenses such as electricity and diesel fuel were $2.9 million less than expected, resulting in a net positive change of $7.92 million.
The school district also received about $800,000 due to Gov. Mike Parson recently releasing state withholdings.
The district expects to receive $14 million-$16.5 million in the next stimulus package in May or June, JC Schools Chief Financial Officer Jason Hoffman said.
Hoffman said he had expected to have a $1.6 million deficit, but the district will actually have a $2.76 million surplus by the end of the fiscal year. This includes moving $3 million into the capital projects fund, which the district hadn't originally planned to do.
"We're going to end the fiscal year obviously in a much, much better position than we thought," he said.
The fiscal year 2022 budget includes a 1.8 percent salary increase for paraprofessionals, custodians and Nutrition Services staff, which will be $1.2 million, Hoffman said.
New expenses also include the hiring of three custodians for Capital City High School, a 4 percent increase in the district's transportation contract and a 5 percent increase in energy costs.
The budget reduces COVID-19-related expenses, such as Plexiglas, masks, cleaning supplies and virtual tuition by $3.2 million.
There will be $974,000 less in expenses and $7.2 million less in revenues, which puts the district at a $485,000 deficit and 27.4 percent fund balance at the end of the 2022 fiscal year.
"Our goal is to have 20 percent fund balance, so we're significantly above where our goal is, and we will need to work to get to that, but we don't need to be in a hurry," Hoffman said.
Hoffman said he asked for the board's approval for this preliminary budget so the district can issue contracts and begin operating the salary schedule.
In other business, the board voted to approve interpreting service agreements with Deaf Heart Interpreting Service and Access Interpreters as well as contracts with the following companies: Bias Lawn Care and Landscaping for lawn maintenance renewal; Foresight for Thomas Jefferson Middle School roof repair; and Don Schneiders Excavating Company for improvements at Lawson Elementary School, Nichols Career Center, Miller Performing Arts Center and Southwest Early Childhood Center.
At the meeting, Superintendent Larry Linthacum said the district plans to present more details on the weekly early release days plan and recommend the board approve it at the April 12 meeting.
The district is proposing weekly 70-minute early- release days on most Mondays to allow for more staff professional development time in the 2021-22 school year.