The proposed budget for KIPP New Orleans Schools shows an increase of about thirty percent in both revenue and expenses for the 2012-2013 school year over last year, with total costs reaching $32.3 million.  The schools are relying on an increase in per-student funding from the state as enrollment grows from 2,400 to 3,200 students.

The greatest expense overall for KIPP New Orleans schools is salaries. Salary expenses are expect to grow twenty-nine percent for the 2012-2013 school year, increasing from $12.8 million to $16.6 million.

The greatest percent increase in year-over-year spending covers services to KIPP’s schools, several of which are being renovated.

Currently, the Douglas campus is set to undergo renovations, while KIPP New Orleans Leadership Academy will move into a permanent location in the former Colton School building on St. Claude Avenue. A permanent facility for KIPP McDonogh 15 is currently under construction at the Gaudet campus on Hayne Boulevard.

The schools also will be adding an eighth grade next year at a cost of about $250,000, primarily covering staffing expenses.

The charter organization expects a 1-percent budget surplus in the 2012-2013 school year. Typically, a six- to seven-percent surplus denotes a healthy budget, although many schools operate at a deficit for their first several years.

Mike Dunn, KIPP’s Chief Financial Officer, said that the school hopes to achieve that surplus target by the end of the 2013-2014 school year.

KIPP announced this budget the week of June 10th and will vote to approve or amend it at the regularly scheduled board meeting, Thursday, June 21 at 5:30 pm., after comment from the public. Hard copies of the proposed budget are available at KIPP’s Douglas Building at 3820 St. Claude Avenue.