M&O Funding

M&O Funding

The maintenance and operations (M&O) fund at RISD is funded by three sources. Two of these sources a substantial in the funding and the other do not even provide 1% of the revenue for the M&O fund. The two major revenues are State Funds and the other is Local/Intermediate funds. State funding is $10,017,200.00 which is 72% of RISD’s revenue and Local/Intermediate funding is $4,005,336.00 which is 28% of RISD total revenue. Federal funding for the M&O fund adds in a mere 45,009 which is less than 1%. These figures clearly show that RISD operates primarily on state funds.
After reviewing the revenue for RISD and comparing it with the expenditures, we have a balanced budget each year. RISD expenditures never exceed the actual revenue. RISD has earned the State's Highest Fiscal Accountability Rating for the past three years. The Superior Achievement rating is the state’s highest, demonstrating the quality of Rusk ISD’s financial management and reporting system.
When looking at expenditures I had the opportunity to evaluate the object codes and the function codes. Object Code 6100 is the payroll code. Payroll accounts for 75% of the M&O expenditure at Rusk.7.23 million of the payroll is in Function 11 which is instruction with the remainder of the 10.5 million designated in other functions. With this in mind basically we spend all of our state revenue on payroll and all of the districts Local/ Intermediate funds are responsible for all other areas of the M&O expenditures. This is something that is very appropriate to point out to individuals who have negative comments about where the districts money is being spent. It is easy to tell them that ¾ of our revenue goes towards staffing.
The other object codes that we spend the remaining 25% on are; Professional and Contracted Services (6200), Supplies and Materials (6300), Other Operating Costs (6400), and Capital Outlay, (6600). Professional and Contacted services are 10% of total expenditures. These services consist mainly of utilities, custodial services, and maintenance labor. Supplies and Materials fall in at 8% of expenditures. Over half of this object fund is spent in function 11, which is instruction. The other majority of funding is for custodial supplies with the remainder being minimal in each function. Other Operating Costs is at 5% and Capital Outlay is 2%. The majority of Operating Cost comes from travel, registration, and staff development. Capital Outlay represents funds associated with funding to certain departments.
Overall the evaluation of the RISD budget reflects good use of the revenue funds allocated to expenditures. We continually have a balanced budget and funds are appropriated efficiently. RISD focuses the majority of its funding on instruction with a minimal amount on its funding elsewhere. In my opinion RISD budgeting is very well deserving of the State's Highest Fiscal Accountability Rating for the past three years. I continue to be amazed at the performance of our district pertaining to the budget.