Budget Case Problem

Meadow Lake Elementary will receive 600 additional students next fiscal year. This increase in student enrollment will raise the school over the number needed for several additional staff. You are only concerned with the budget for the additional students.

Your school will be allocated an additional:

Description                                                                              Salary Costs

Assistant Principal                                                                    $ 53,000 

Guidance Counselor                                                                                 $ 48,000

4 six-hour Teacher Aides                                                        $  9,600 each 

Regular Classroom Teachers                                                    $ 48,000 each

One ESE Classroom Teacher                                                   $ 48,000 each 

One Speech/Language Teacher                                                 $ 48,000 each

One ESOL Teacher                                                                  $ 48,000 each 

One Custodian                                                                         $ 20,000

Secretary Clerk                                                                        $ 14,000 

Data Processor,                                                                        $ 16,000 

The regular education student-teacher formula is 20:1

The school will also receive:

A. $ 4 per student for administrative supplies

B. $16 per student for classroom supplies for regular teacher

C. $ 5 per student for custodial supplies

D. $ 300 per classroom teacher (ALL teachers except speech/language) for textbooks

E. $ 200 per ESE teacher for ESE supplies

F. $ 200 per ESOL Teacher for ESOL supplies

G. A computer package for making class presentations for each regular, ESE, and ESOL teacher (not Speech) (package includes laptop computer with LCD projector) - cost per package is $3,500 per teacher.

H. Substitute budget for $ 5,000

Outline and total the school's additional budget resources based on the increased enrollment. Use State of Florida Function and Objectcodes (Redbook codes), and group the budgeted items by common function.

Use the following headers: (an Excel spreadsheet is available to assist with this assignment)

FUNCTION OBJECT DESCRIPTION EMP. CT. SALARY NON-SALARY

Using the following employee benefit costs, determine the TOTAL employee costs for the enrollment increase (Salary + Benefits)

Variable Benefits                                    Fixed Benefits 

Retirement  10.40%                                 Health $ 5,000

FICA    7.65%                                          Life $  75

Work Comp                                             1.50% 

Total  19.55%                                         $ 5,075

1. What are the Function & Object codes for each of the personnel items?

2. What are the Employee Counts for each Function group?

3. What are the total non-Salary Costs, by Function and Object, for the non-salary items for these additional 600 students? (3 points, ½ points for each incorrect Function, Object, or total cost)

4. What are the total variable and fixed employee benefit costs?