Jt. District 282 and Proposed State Education Budget

The Joint Finance and Appropriations Committee passed a FY2011 budget for K-12 education including some important intent language to provide districts with increased financial flexibility and local control. It is anticipated that it will take a week to draft the actual bill. Most people close to the process feel it will pass the Senate without too much difficulty but there is some concern in the House that the JFAC budget does not cut enough to prevent a potential mid-year hold back in FY2011.

Some of the highlights of the proposed state budget include:

• reduction in state funding of 8.5%
• transportation reimbursement cut 10%
• teacher and classified salary apportionment cut 4%
• administrative salary apportionment cut 6.5%
• state paid benefits cut proportionately
• teacher incentive award postponed for at least one year
• Substance abuse prevention funding cut from $7 million to $290,000
• technology funding eliminated
• math and reading initiatives plus ISAT remediation cut 20%
• Gifted and talented training grants eliminated
• classroom supply and textbook supply dedicated funds eliminated
• state discretionary funds reduced 14.4% from the current year

The funds from some of the cuts identified above have been placed into discretionary funding which is the action that helps provide flexibility to districts to meet the current financial conditions. Had the legislature not done so, the discretionary funding could have been reduced 32%. Discretionary funds are used to pay for utilities, employee health insurance, supplies, purchased services, etc.

We have been assured that there will not be a mid-year hold back of FY2010 funds. Of course this just means that funding is reduced for FY2011 but it is always easier for a district to reduce spending before a budget year begins than after we are two-thirds of the way through the year.

We made some cuts during this year in anticipation of a possible hold back which has increased our anticipated fund balance at the end of our fiscal year. We will be able to expend more of our fund balance to help ease the pain in FY2011.

I will be proposing that the Board of Trustees consider setting a supplemental levy for the 2010-2011 school year in the amount of $700,000 with an election to be held on April 13. Because of the increased flexibility provided through JFAC, our increased fund balance due to mid-year spending reductions and to the increased state revenue as a result of the Land Board decision to increase the payment to schools next year, I have been able to produce a preliminary budget that does not require a severely compressed calendar nor additional staff reduction beyond anticipated attrition. That preliminary maintenance and operations budget will be discussed at the regular March board meeting Monday night.