Having a budget shortfall of $415,000 isn’t exactly cause for rejoicing, Dr. Craig Neuenswander, superintendent of USD 257 schools, said Wednesday afternoon, but the deficit is much more manageable than what it had earlier appeared.
The district previously faced cuts of $902,000 one month ago and $609,000 as recently as May 3.
Today’s shortfall is the result of legislators passing a one-cent sales tax early Tuesday morning to keep state aid to schools level and to prevent deep cuts to social services programs.
The district’s general fund and local option budgets, money which may be used for general operations, total about $13 million.
The shortfall board members now face comes from a $261,000 state aid loss because of declining enrollment and anticipated higher costs during the 2010-11 school year for utilities, fuel and health insurance.
“I’ve been using $66,000 for the increase we can expect for higher utility and fuel costs and with what gasoline has done recently (it is $2.90 a gallon for regular unleaded here today), it looks like we’re going to face added costs of at least that much,” Neuenswander said.
Also, he thinks health insurance costs will increase about $88,000, based on industry-wide projections of 9 to 11 percent higher premiums.
Cuts board members will consider — Neuenswander hasn’t yet decided precisely what to recommend — are tempered somewhat by action they took May 3 in non-renewal of seven teachers. Because two will be replaced, the net reduction is five, saving about $192,000.
Initially, Neuenswander said his recommendation likely would be to buy fewer supplies and reduce paraprofessionals. Also, he said a proposal to increase the capital outlay fund levy from 5 to 8 mills now probably was off the table.
Bumping the levy by 3 mills would raise $153,000. Capital outlay funds, by law, are limited in how they may be spent, although a strategy that may be employed is to replace general fund expenditures, such as those for buses, with capital outlay money to free more for general operations, including salaries. Salary absorption is important because it is the lion’s share of the district’s fiscal responsibility, running more than 80 percent.
“I don’t know yet what I will say and recommend Monday night,” Neuenswander said. “It should be an interesting discussion.”
257 picture brightens
