Finding cuts is more challenging

The 2011-12 budget season began in earnest last Thursday, Jan. 27, at the school board working session. Unfortunately, I am not able to report any changes since last budget season. The state still has not adjusted the funding formula and the trend over the last few years of declining enrollment continues, and is expected to continue for the foreseeable future.

The total deficit for next year is $2.4 million and the process of finding reductions in a budget that has been cut to the bone since 2003-04 has already begun. For the third year I conducted Budget Boot Camp, a comprehensive study of district business in hopes savings previously undiscovered can be found.

The previous two years of Budget Boot Camp resulted in hundreds of thousands of dollars in savings; unfortunately those kinds of savings are not readily available to the district anymore.

The school board took a big step in addressing the severity of cuts last Thursday when they provided consensus to use the district’s $700,000 in federal stimulus money, and another $200,000 in staff development carrryover, reducing the deficit to $1.5 million immediately. There may be other funds available to the district to further alleviate the reductions, but the matter requires careful study.

While the use of those funds gives the district relief from cuts for next year, stimulus and staff development funds are “one-time” funds that the district will not have at its disposal the following year. That means that more will need to be cut from subsequent budgets.

The good news is that the district has budgeted wisely over the years and, as a result, has been able to build its fund balance again, and options like the OPEB (other post-employment benefits) trust create relief for the general fund.

Please monitor the district website (www.northbranch.k12.mn.us) for budget information and important dates as they become available. Between now and mid-March the district is accepting input. I am looking forward to hearing from you.

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