The finance director of the Bethandy Independent School District is making preliminary estimates of the budget outlook for the General Fund for the 20X8 fiscal year. These estimates will permit the superintendent to advise the department heads properly when budget instructions and forms are distributed. She has assembled the following information:

3. Fund balance at the end of 20X7 is expected to be $1,600,000; at least $1,500,000 must be available at the end of 20X8 for carryover to help finance 20X9 operations

Required
a. Prepare a draft operating budget for the Bethandy Independent School District for the 20X8 fiscal year, including 20X7 comparative data and expected change computations.
Assume that 20X8 appropriations are to equal 20X8 estimated revenues.
b. What total salaries and wages amount and average percentage increase or decrease are implied in the draft operating budget prepared in part (a)? What are the maximum salary and wages amount and percentage increase that seem to be feasible in20X8?

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Expected Estimated Change- 20X7 20X8 1. Revenues $2,000,000 1,000,000 500,000 Property +6% +3% $40,000 taxes. . . . .. . Federal grants. $3,800,000 2. Expenditures Salaries and wages. .. $2,700,000 400,0000 +490 Capital outlay. . ._ Debt service. Other 200,000-$15,000 100,000 +20,000 50,000 5,000 $3,750,000