By Janine DavisRecord Staff WriterWarren County R-III School District leaders hope a planned increase in funds from the state isn’t compromised by politics.The day before Gov. Jay Nixon announced he was withholding $100 million in state foundation formula funds for schools, the R-III school board unanimously approved a $33.2 million budget for the 2014-2015 school year. That spending plan was based in part on receiving more funding from the state this year.The district’s budget is up from $32.5 million the previous year.The general/operating and teachers fund portion of the budget (excluding capital spending and debt service) is $29.4 million, up from $28 million last year. With revenue for these funds at more than $29.5 million, the budget will run a positive balance of $169,877.“The budget was passed before we learned about the formula withholding,” said Tony Chance, district financial director. “DESE (Department of Elementary and Secondary Education) hasn’t yet issued any statements on direction for schools, so we’re waiting to see what unfolds.”The governor’s withholdings are linked to his veto of numerous bills passed by the Legislature that provide tax breaks he said the state cannot afford.The formula factors significantly into R-III’s — and every other district’s — budget revenues. The R-III district’s 2015 revenues are projected at more than $32.8 million across all funds versus $31.6 million last year.Included in this years’ figure is a $751,000 increase in state basic formula funding, a $159,000 increase in property and other local taxes, as well as an additional $104,000 in Prop C (sales tax) and $60,000 in state assessed railroad and utility taxes. The spending plan also anticipates increases in special services ($39,000), and title programs ($31,000).“We anticipated slight growth in local assessments, a state foundation formula based on DESE’s earlier direction and fairly flat federal funding,” said Chance.He also noted that the district has seen gains in average daily attendance on which state funding is partially based, and that student population was up by more than 120 last year.On the expenditure side, the district is incurring an additional $849,000 in salaries based on increases approved in June, along with $235,200 for six new full-time positions to meet the district’s growing elementary and special education populations. Also included in expenditures are an additional $179,100 to accommodate a 3.5 percent increase in health insurance premiums. The district’s dental insurance is expected to decrease by 3 percent, freeing up $4,500 compared to last year’s budget.Other variances from the previous year include $212,200 for surveillance cameras in all buildings as a security measure, $93,000 in debt service payments, as well as an additional $55,100 in utilities (natural gas, electric, fuel, water and sewer).The budget features a fund reserve balance of 22.14 percent.Collectively across all four funds, the district will deficit spend by $368,896 in this year’s budget because of shortfalls isolated to the capital spending fund. But Chance explained there are other monies already in that fund to balance it. Approximately $251,600 in the capital fund will be spent to upgrade the district’s aging bus fleet.Chance said that by the 2015-2016 school year, the budget across all four funds will be neutral or balanced as principal and interest payments related to Warrior Ridge Elementary continue to decrease.R-III Budget