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.

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.