St. Michael-Albertville Schools Focus Attention on 2012 Budget

Between the levy’s successful passage, the state’s surprise budget surplus and good news in the district’s 2011 and 2012 budgets, there is reason for the to feel optimistic about where their numbers stand.

The district is putting the 2011-2012 budget pretty much in its rearview mirror as it hosts a Truth in Taxation hearing tonight on the 2012-2013 budget during its regular meeting at the district offices, set for 7 p.m.

Residents will have the opportunity to weigh in on next year's levy, which has been given preliminary approval. That means the district can lower the general levy (collection of local property taxes separate from the operations levy), but not raise it. 

The district ended fiscal year 2011 with $332,000 more in their fund balance than anticipated, which sounds big but Superintendent Dr. Jim Behle said this number accounts for only about one percent of the annual budget. Conservative revenue estimates and some expenditures coming in lower than anticipated created this small surplus, he said.

“If you have a large budget, when you’re within one percentage point that’s pretty outstanding,” Behle said, “The first thing we’re always going to do is have a balanced budget, and your numbers on a $40 million budget is never going to come out exact. We always try to be very conservative one our revenues and set our budget expenditure for our worst case scenario; that way we’re not surprised.”

For the current fiscal year 2012, the projections are showing an additional $104,000 in the district’s general fund balance than previously projected.

“It gives us a little cushion,” Behle said, “depending on the winter and other things that could come up that could change, but this is our projection at this point. $104,000 is a very small contingency, it can quickly be used up for utility bills, winter [snow removal and related expenses] or additional staffing.”

Talks are also beginning for the fiscal year 2013 budget, which begins July 1 of this year. Had the levy failed, this would have been the first year the schools would have seen substantial budget cuts. The additional levy funds, approved in a November vote, will bring a lot more stability, but Behle added that ongoing negotiations with teachers, principals and other groups leave uncertainties in the budget at this point.  

The district needs enough in reserves to cash flow themselves due to the state’s education funding shift, Behle said. Without knowing when the state will get caught up, the district needs to continue building that reserve to avoid borrowing money for cash flow, as many neighboring districts are planning for future budgets.

Questions on Community Service

As the school board was looking over these numbers last Monday evening, board chair Doug Birk brought up the community service fund, which is projected to gain nearly $100,000 in the next fiscal year, and questioned if this fund is growing too large.

Currently at $435,000, Behle said the reserves for that fund are not too large, saying it’s helpful right now because some additional money from the fund is being used to cash flow the Early Childhood Family Education (ECFE) and Bright Beginnings preschool programs, which are currently spending more than they take in. Budget cuts have already begun in these two areas and will be stepped up next school year so the programs can achieve a balanced budget and pay back the fund.

At Bright Beginnings, tuition will rise slightly next school year and the budget will be trimmed, though coordinator Deb Spencer said she does not plan on any programming reductions. The ECFE program will adjust their budget by cutting staff hours, eliminating some of the less-popular classes or combining classes, and shortening the timespan that some of the classes run for, perhaps holding 10 sessions rather than 12. Where currently they offer around 28 courses per semester, starting this upcoming semester they will be offering 24-25. Spencer also said they have created a six-tiered sliding-fee scale rather than the four-tier scale they currently have, so some families might pay more than before if they were on the upper ends of their tier.

“We’re working on what the different options would be for the best case scenario for continuing to offer our quality program,” Spencer said.

The community service fund cannot be augmented by the operations levy, per state law. 

IF YOU GO

What: St. Michael-Albertville School Board Meeting and Truth in Taxation Hearings

When: 7 p.m., Monday (tonight)

Where: St. Michael-Albertville School District offices (west end of Middle School West)

More Info: The meeting is open to the public. The Truth in Taxation hearing will open the board meeting. Residents with questions will be asked to state their name and address for the record.