For fiscal year 2022, the Mexico School District expects a 2 percent increase in revenue. But they also anticipate expenses to jump by 8 percent.

Because the schools have built up a healthy reserve, however, the administrators believe the district is in sound financial shape.

The projected budget for fiscal 2022 calls for revenue of $28.6 against expenditures of $30.4 million. District reserves will easily cover the remaining amount. Federal allocations of $5.5 million and up to $7.3 million in pandemic-related relief funds are also available.

“There’s not any real concern,” said School Board president Todd Yager, adding that these are estimates and the budget would be adjusted in the coming months to reflect actual financial data.

Almost across the board compensation increases approved by the board and included in the budget account for much of the difference. Administrators also had to adjust for the increased cost of some items and services, as well as a slight drop in personnel property assessed valuations for 2020.

Interim superintendent Melissa Chastain has made staff retention and morale a focus of her term, with additional goals of attracting highly qualified staff and improving educational programs.

Raises -- $1,000 for teachers, between 5 percent and 7 percent for support staff and 20 percent for nursing -- are considered part of that effort.

The boost in compensation is very important, she said, “because people are important.”

Mexico schools reported an estimated average daily attendance of 2,120 across K-12 for 2021-22, with an additional 120 in summer school.

Building a school budget requires tracing revenue from multiple sources, including property taxes, federal and state funds and earning on investments. These go into four different funds.

Expenses run through more than 100 categories. Salaries, maintenance, supplies and utilities are among the obvious. But schools spend money on insurance, background checks, fuel, postage and much more.

After the departure of superintendent Dr. Tammy Lupardus in the midst of budget planning, Dr. Zach Templeton -- a former superintendent -- stepped in to help with the process.

“Dr. Templeton’s assistance was greatly appreciated,” Chastain observed. “Having deadlines to meet for the new budget and with his background in math and understanding of our district he made the process easier.”

Chastain praised the administrative staff and board for pulling the budget together. Yager added credit to the solid working relationship between Templeton and Chastain.

“The district is in good financial shape,” Chastain said.