A FY 2015 budget with expenditures surpassing revenues by over $25 million was approved by the Morgan County School Board at a regular meeting Thursday.

Capital outlays for construction projects at Priceville, West Morgan and Danville accounted for most of the difference.

Revenues from all sources are estimated at $75.4 million while total expenditures are listed at $102.1 million. Capital expenditures totaling $25.2 million are included as an expense item. Instructional services account for  $39.9 million of total expenditures.

“We’re operating at FY 2008 state funding levels,” said John Godwin, chief schools financial officer. “What we expect to receive from the state in FY 2015 is $4.2 million less than what we received in 2008. We still have some catching up to do.”

Even though state revenues in the coming year are projected to increase by over $800,000, the school system will have to pick up an additional expense of $130,000 for additional teacher salaries and over $471,000 for increased fringe benefits, Godwin pointed out.

The school system expects to spend $8.2 million for special education services and $653,367 for health services and $680,357 for coaching supplements.

The budget reflects an ending reserve balance of $13.6 million as of Sept. 30, 2014, but Godwin said he expects the balance to drop to about 10 million at the end of the next fiscal year.