The school board held a worksession on January 28 to continue discussion on budgetary matters and discuss the process to identify adjustments to the budget for the year beginning July 1, 2009 and beyond.
We will make a presentation to all staff on Wednesday, February 4 at 7:10 a.m. in the middle school auditorium covering the budget planning philosophy, the plan to use some fund balance over the next several years and some financial data. From there we will be convening some committees to review areas within various budget functions. The plan at this time is to have these groups report to the school board on February 25 with initial ideas.
The budget planning documents can be found here
Friday, January 30, 2009
Friday, January 23, 2009
January Board Meeting
Sunday, January 18, 2009
Jan. 19 Meeting Cancelled
When the January 19 board workshop meeting was set we didn't think about it being Martin Luther King Day. State law does not allow meetings of government bodies on this date. That meeting will probably be rescheduled for Wednesday, January 28.
The next regular meeting of the school board will be Monday, January 26. Tune in to Delano Cable Channel 12 to view that meeting live.
The next regular meeting of the school board will be Monday, January 26. Tune in to Delano Cable Channel 12 to view that meeting live.
Wednesday, January 14, 2009
School Finance Update 1.14.09
The school board held a work session on January 13 and identified the following Budget Planning Philosophy to guide thinking when considering planning for the future:
1) Keep students in mind at all times and remember that Educational Excellence is our
Foremost Goal.
2) Don't cut sooner than necessary in order to keep programs in place as long as possible for
students. However, take advantage of attrition of staff when opportunities arise in support of
item 3.
3) Cut things first, personnel second.
4) Academics have priority over activities.
5) Preserve programs where maximum benefit is received for minimal expenditure.
6) Stretch fund balance to last through FY12 when current operating levy expires. Operating
levy will need to be renewed and increased no later than November 2011.
7) Look for revenue enhancements: donations, fees...
8) Maintain 20% fund balance as per policy, under a more normal economic environment.
1) Keep students in mind at all times and remember that Educational Excellence is our
Foremost Goal.
2) Don't cut sooner than necessary in order to keep programs in place as long as possible for
students. However, take advantage of attrition of staff when opportunities arise in support of
item 3.
3) Cut things first, personnel second.
4) Academics have priority over activities.
5) Preserve programs where maximum benefit is received for minimal expenditure.
6) Stretch fund balance to last through FY12 when current operating levy expires. Operating
levy will need to be renewed and increased no later than November 2011.
7) Look for revenue enhancements: donations, fees...
8) Maintain 20% fund balance as per policy, under a more normal economic environment.
The board has identified $1.6M in fund balance that can be put towards reducing the deficit over the next three years. This would be accompanied by budget reductions to stretch out the use of the fund balance over the next several years. The plan under discussion would utilize $533,333 in fund balance each year for three years and $388,579 in reductions in 09-10; $582,287 in 10-11; and $741,632 in 11-12.
The board will hold another work session on January 19 at 6:30 p.m. in the high school media center to give further review to the plan discussed and to discuss a process for identifying budget reductions.
Friday, January 9, 2009
School Finance Update
Governor Tim Pawlenty discussed the state's budget situation on his radio program on WCCO this morning. He reiterated that he wants to protect safety (the military) and public safety (police) and K-12 education. It is encouraging to know that K-12 isn't on the chopping block, at least at this time. I am not sure what this means for community education.
He went on to discuss the county commission that voted themselves a raise then took action to cut the budget. The governor is promoting salary freezes for all government employees in light of the economic conditions facing the state and nation.
He has been talking about "zero based budgeting." He is now advocating "priority based budgeting," which identifies the most important government services and funding just them.
This week the school board's finance committee met to continue discussion on how the school district will deal with a $921,912 deficit in next year's budget. Without action for next year the projected deficit for the next year grows to $1,504,199 and to $2,245,831 in 2011-12. This assumes no increase from the state. 83% of the General Fund revenues come from the state.
The district is fortunate to have some fund balance to soften the blow of future reductions. At this point the finance committee is discussing using about $1.7M of the fund balance to cover deficits for the next several years. Under this scenario there would need to be about $1.7M in cuts, while using the available fund balance, leaving enough fund balance to cover one month expenses.
The finance committee will be bringing the whole board up to speed in a study session on January 13 and finalizing the numbers that we will be working with.
He went on to discuss the county commission that voted themselves a raise then took action to cut the budget. The governor is promoting salary freezes for all government employees in light of the economic conditions facing the state and nation.
He has been talking about "zero based budgeting." He is now advocating "priority based budgeting," which identifies the most important government services and funding just them.
This week the school board's finance committee met to continue discussion on how the school district will deal with a $921,912 deficit in next year's budget. Without action for next year the projected deficit for the next year grows to $1,504,199 and to $2,245,831 in 2011-12. This assumes no increase from the state. 83% of the General Fund revenues come from the state.
The district is fortunate to have some fund balance to soften the blow of future reductions. At this point the finance committee is discussing using about $1.7M of the fund balance to cover deficits for the next several years. Under this scenario there would need to be about $1.7M in cuts, while using the available fund balance, leaving enough fund balance to cover one month expenses.
The finance committee will be bringing the whole board up to speed in a study session on January 13 and finalizing the numbers that we will be working with.
Tuesday, January 6, 2009
Organizational Meeting
The organizational meeting was held on January 5, 2008. Here are the minutes of the meeting.
The school board heard the report on the audit of the fiscal affairs of the school district for the year ending June 30, 2008. At this point in time the school district is financially sound with an unreserved General Fund fund balance of $3,614,775. A portion of this amount is available to carry the district through the difficult budget times that the district will face in the near future. A good portion of the fund balance needs to be retained for cash flow purposes (and to avoid short term borrowing), to meet health insurance obligations and emergency type expenditures.
Budget projections for next year, FY10, indicate that unless spending reductions are made, the district will have a deficit in the area of $900,000. The board's finance committee will be meeting beginning this week to determine how to meet the financial challenges of the next several years.
Stay tuned here for updates as they become known.
The school board heard the report on the audit of the fiscal affairs of the school district for the year ending June 30, 2008. At this point in time the school district is financially sound with an unreserved General Fund fund balance of $3,614,775. A portion of this amount is available to carry the district through the difficult budget times that the district will face in the near future. A good portion of the fund balance needs to be retained for cash flow purposes (and to avoid short term borrowing), to meet health insurance obligations and emergency type expenditures.
Budget projections for next year, FY10, indicate that unless spending reductions are made, the district will have a deficit in the area of $900,000. The board's finance committee will be meeting beginning this week to determine how to meet the financial challenges of the next several years.
Stay tuned here for updates as they become known.
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