The budget proposes spending in the amount of $34,909,254 and revenues of $32,360,829. The budget’s spending and revenues have increased by 5 percent and 3 percent, respectively, over last year, according to Business Administrator Sam Maney, who anticipates a $2.5 million deficit for the upcoming year.
According to him, the budget’s anticipated deficit is mostly due to increases in the district’s salaries and benefits. In 2013-14, he said its salary-related costs have increased by $500,000, or 3.7 percent. However, he’s already built in a proposed autistic support position and two extra teachers in case the need arises later.
Maney said the district anticipates paying out approximately $15 million in salaries and $8 million in benefits in the upcoming year. He said it also anticipates a 4 percent increase in its health insurance costs over last year. Maney said the district currently employs 180 teachers with total staff being 250 people, which increases to 400 people with the inclusion of part-time staff.
He said the district’s contribution to the Public School Employees’ Retirement System (PSERS) is anticipated to increase to 16.93 percent in 2013-14, which is $730,000 more than last year. The district anticipates paying out a total PSERS contribution of $2.5 million.
Despite the gloomy picture for the upcoming year, Maney couldn’t justify the district raising property taxes, while it’s still working with positive numbers. He said it ended last year with a general fund surplus of $327,000 and a fund balance of $7 million. In addition, Maney anticipates the district will end the current-year with a general fund surplus of $1.1 million to bring its fund balance to $8.2 million for 2012-13.
Maney had originally anticipated a $1.8 million deficit for the current-year.
“But I think it could get better between now and the end of the year once all the adjustments are made and the books are balanced,” said Maney. “I don’t think a $1.1 million surplus is out of the question.
“I know that I’ve said this before, but we are getting closer. As things start to unfold, you’ll see it come in 2013-14 numbers, because that deficit is going to become a reality. I’m looking to bridge from now through the consolidation.”
Maney said down the road, the district will eventually have state reimbursements once the moratorium is lifted, as well as operational savings from its consolidation into two school buildings to keep the district moving in the future. Maney said the district is more financially sound then many others across the state.
Superintendent Dr. Thomas B. Otto said the budget process is a game that involves a lot of guessing. He said he and Maney weren’t comfortable asking the community to accept a tax increase until the district knows it’s going to have to use some of its general fund to overcome a deficit.