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.
Friday, January 9, 2009
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.
Wednesday, December 31, 2008
School Board Organizational Meeting
The school board will hold its organizational meeting on Monday, January 5, 2008 at Delano City Hall beginning at 7:00 p.m. The agenda is posted on my website.
Thursday, December 11, 2008
School Board Meeting December 15, 2008
The monthly school board meeting for December will be held in the high school cafeteria on Monday, December 15 beginning at 7:00 p.m. The agenda is posted on my website
The agenda includes the following:
Policy Revisions - This will be the second reading to policy revisions that are driven by changes in state laws.
Consider Revising Rent on School Owned House - There hasn't been much interest from potential renters in the house acquired as a result of the last bond issue. We have been advertising it at $1500 per month. The board will consider lowering the rent.
Amendment to Purchase Agreement for City Land - This revises the original purchase agreement and sets the closing date before December 31, 2008.
Acknowledge letter from Watertown-Mayer to dissolve the Agreement for Shared Administration of Community Education Programs and Services and hear recommendation from the Community Education Advisory Council - Delano and Watertown-Mayer Schools have been sharing the Com Ed Director and Enrichment Coordinator since 2004-05. W-M would now like to end that arrangement and re-negotiate something else. The Delano Community Education Advisory Council recommends that we hire a full time director on our own. See their letter that is linked to the agenda.
Consider Proposal to Submit to Congress Should Congress Authorize Stimulus Plan That Would Include Schools - The Obama administration is having discussions about an economic stimulus plan that would include school construction and renovations that could be ready to go by April 1. We think the science additions, music additions and security upgrades that were part of our past bond elections could be ready to go by April. We also have some roof replacement that is due this summer that could also be considered.
Declare Surplus Property - We are getting together a list of surplus property items that are no longer useful to the district that we would like to dispose of. The list may or may not be ready by meeting time.
Request for Extended Trip - District policy requires board approval on overnight trips. This one has to do with the hockey team going to Duluth over winter break for a tournament.
Set Organizational Meeting - The board typically holds an organizational meeting of the board early in December to elect officers and set up board committees.
The agenda includes the following:
Policy Revisions - This will be the second reading to policy revisions that are driven by changes in state laws.
Consider Revising Rent on School Owned House - There hasn't been much interest from potential renters in the house acquired as a result of the last bond issue. We have been advertising it at $1500 per month. The board will consider lowering the rent.
Amendment to Purchase Agreement for City Land - This revises the original purchase agreement and sets the closing date before December 31, 2008.
Acknowledge letter from Watertown-Mayer to dissolve the Agreement for Shared Administration of Community Education Programs and Services and hear recommendation from the Community Education Advisory Council - Delano and Watertown-Mayer Schools have been sharing the Com Ed Director and Enrichment Coordinator since 2004-05. W-M would now like to end that arrangement and re-negotiate something else. The Delano Community Education Advisory Council recommends that we hire a full time director on our own. See their letter that is linked to the agenda.
Consider Proposal to Submit to Congress Should Congress Authorize Stimulus Plan That Would Include Schools - The Obama administration is having discussions about an economic stimulus plan that would include school construction and renovations that could be ready to go by April 1. We think the science additions, music additions and security upgrades that were part of our past bond elections could be ready to go by April. We also have some roof replacement that is due this summer that could also be considered.
Declare Surplus Property - We are getting together a list of surplus property items that are no longer useful to the district that we would like to dispose of. The list may or may not be ready by meeting time.
Request for Extended Trip - District policy requires board approval on overnight trips. This one has to do with the hockey team going to Duluth over winter break for a tournament.
Set Organizational Meeting - The board typically holds an organizational meeting of the board early in December to elect officers and set up board committees.
Friday, December 5, 2008
$5.2 Billion Hole
Today's StarTribune reported on yesterday's announcement regarding the economic forecast that was released. "Long-range, Pawlenty said, he will propose a reshaping of health care, K-12 education spending and the tax system itself, which he called outdated...Even the K-12 budget, considered sacrosanct most years, will be rebuilt from zero. [House leader] Kelliher appeared to back up that proposal, saying that legislators will use zero-based budgeting to winnow spending."
Under zero based budgeting every budget function is comprehensively reviewed and every item justified in complete detail. This process could lead to major education reforms driven by the state's financial challenges.
At Delano Schools we anticipate a deficit budget for the next school year (FY2010). However we do have some fund balance we can utilize to stave off wholesale reductions for a year or so, depending on how K-12 funding is impacted by the state. One reason we will be in a deficit budget is that the $425 voter approved operating levy, along with other funding sources, isn't keeping up with inflation. The state average operating levy after the November 2008 elections, is $919 per student and will go to $999 per student next year (because of the inflationary factors built in to some of the levies). Our operating levy will expire in 2011. It will need to be renewed and increased either in November of 2010 or 2011.
Under zero based budgeting every budget function is comprehensively reviewed and every item justified in complete detail. This process could lead to major education reforms driven by the state's financial challenges.
At Delano Schools we anticipate a deficit budget for the next school year (FY2010). However we do have some fund balance we can utilize to stave off wholesale reductions for a year or so, depending on how K-12 funding is impacted by the state. One reason we will be in a deficit budget is that the $425 voter approved operating levy, along with other funding sources, isn't keeping up with inflation. The state average operating levy after the November 2008 elections, is $919 per student and will go to $999 per student next year (because of the inflationary factors built in to some of the levies). Our operating levy will expire in 2011. It will need to be renewed and increased either in November of 2010 or 2011.
Open Enrollment
The school district has again limited open enrollment for the 2009-10 school year for grades 1-12. No limit has been placed on kindergarten yet because families already have students open enrolled in higher grades and we are sensitive to splitting families between districts. Also kindergarten is our lowest enrollment grade. What this means is that we will allow in two students per grade in grades 1-12 on a first come first serve basis. This is the most strict standard allowed by state law.
The reason for the limitation is that our buildings are full beyond capacity.
If you want to apply for open enrollment for next school year the deadline is January 15. The form is available here
The reason for the limitation is that our buildings are full beyond capacity.
If you want to apply for open enrollment for next school year the deadline is January 15. The form is available here
Wednesday, December 3, 2008
Independence to get Target store?
There is a lot of interest and discussion around Delano and Independence about the possible location of a Target store at the NE intersection of Highway 12 and County Line Road. The main question seems to be "should Delano support this development by providing water and sewer across the county line into Independence?" For a fee, of course.
From the standpoint of taxpayers in the Delano School District a Target store would increase the commercial tax base of the school district. This would lessen the burden on taxpayers for bond and levy referendums, including the existing bonds and levies that are in effect.
This increase in the tax base would not provide more dollars to the school district's general fund. The funding formula is based on a state set authorized revenue amount, which is $19,110,110. Local property taxes ($2,974,518) are subtracted from the authorized amount and the remainder ($16,135,592) is the state aid that is received. So the more property tax that goes into the formula, the less state aid.
From the standpoint of taxpayers in the Delano School District a Target store would increase the commercial tax base of the school district. This would lessen the burden on taxpayers for bond and levy referendums, including the existing bonds and levies that are in effect.
This increase in the tax base would not provide more dollars to the school district's general fund. The funding formula is based on a state set authorized revenue amount, which is $19,110,110. Local property taxes ($2,974,518) are subtracted from the authorized amount and the remainder ($16,135,592) is the state aid that is received. So the more property tax that goes into the formula, the less state aid.
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