Much has been said about the Hoover board of education (BOE) passing budgets that contain “deficits”. In simple terms, a deficit exists when you spend more money than you receive.
Yearly expenditures have exceeded yearly revenues in all but one year (or two, depending on how you measure the deficit).
Alabama law does not allow a BOE to spend more money than it has available. Because Hoover’s BOE has money available, approved budgets comply with the law.
Deficits can be defined two ways: (1) excluding capital expenditures, a.k.a. the operating deficit, or (2) including capital expenditures a.k.a. the total deficit.
We will show you Hoover’s deficit defined both ways.
First chart: actual expenditures based on Hoover City School audits (look in the “Archived Audited Financial Statements” folder).
Second chart: budgeted expenditures from original (as opposed to amended) budgets passed by the Hoover BOE. The source for these numbers is the original budget summaries on file with the Alabama State Department of Education. Click here to view the source documents.
Here’s a cool infogram to share with friends on Facebook. (It can’t be embedded on this WordPress blog, but you can share it through Facebook!)
Recap: Deficits occur when expenditures exceed revenues. The Hoover BOE has the money in the bank to cover the deficit, so no laws have been broken. There are two figures to consider: the operating deficit (which excludes capital expenditures) and the total deficit (which includes capital expenditures).
Join us on Wednesday, January 8, at 6:00 p.m. at the Hoover Public Library in Meeting Rooms A and B to find out what we learned while exploring the Hoover BOE’s financial information.