School Budget in the Black; COVID-19 Has Positive Impact
School Budget in the Black;
COVID-19 Has Positive Impact
Switching to distance-learning in the final months of the Milbank School District’s 2019-2010 school year because of the COVID-19 pandemic had an impact on the overall budget. The final figures for the fiscal year were reviewed at the district’s annual budget hearing Monday, July 13, in the high school lobby.
The general and capital outlay funds finished the year in the black while the food service and special education funds relied on reserves to balance.
The district spent 93.93 percent of the expenditures budgeted for the general fund. The district had anticipated revenue of $7.430 million but received $7.392 million, a difference of slightly more than $38,000. However, $475,535 of the budgeted amount for expenditures went unspent. The district had budgeted $7.833 million, and final figures show expenses were $7.358 million.
The year-end balance for the general fund is $3.226 million which includes the addition of $472,265 from the pension fund. The pension fund has previously been a separate fund on which the district levied a tax. However, state law has eliminated the option to levy for the pension fund, and that expense is now allocated to the general fund.
Savings in care and upkeep of the buildings, transportation, insurance and salaries resulted in a surplus of $65,826.32 in the capital outlay fund. The district had budgeted for $1.754 million in expenses, but actual expenses were $1.630 million. Anticipated revenue was $1.658 million with $1.695 received. It had been anticipated that $100,000 in reserves would be needed to balance the fund, but instead a surplus was realized.
Nancy Meyer, business manager, noted that $25,000 was saved in utilities, and attributed that to the fact that people were not in the building during the last few months of the school year. “We didn’t hire summer help. The custodial staff started earlier on the summer projects because of COVID,” she said. This resulted in a savings in labor expenses. There were no extra-curricular activities in the spring which lowered transportation expenses. The ending balance in the capital outlay fund is $676,346.32.
The food service fund saw a deficit of $15,428. The district budgeted $680,500, and spent $734,936. Meals were provided to students through the summer which increased the expenses.
Meyer revealed that at one point 600 meals were served to students, and presently an average of 425 students are receiving meals. Additional supplies were needed to wrap and bag the meals, according to Meyer. Revenue was higher than anticipated with $680,500 budgeted and $719,507 received. The ending food service balance was $334,178.96.
In the special education fund, $33,091.25 in reserves were used to cover the expenditures. The district had budgeted $1.821 million and spent $1.854 million. Revenue was budgeted at $1.788 million with $1.821 million received. The ending balance is $145,800.75.
Following the review of the fiscal year that ended June 30, the 2020-2021 proposed budget was reviewed. “We have run the budget off of last year’s enrollment numbers,” said Justin Downes, superintendent. The official count was 997 students in the prior year.
Downes expressed concerns about the impact COVID-19 may have on enrollment numbers for the coming year. “Some families may opt to home school, or we may get an influx from out-of-state if we are able to remain open and surrounding states close,” he said. “It could fluctuate depending on COVID.”
The proposed budget is based on a two percent increase, but Meyer pointed out that it is still a work in progress. “This is just the first version. We don’t have to pass the budget until the end of September,” she said.
The district’s valuation increased by more than $25 million and is currently $945.036 million. The district will levy $1.684 per thousand of taxable valuation for the special education fund. This is the maximum allowed by state law. “You can’t access the state’s extraordinary cost fund if you don’t levy at the max,” said Meyer. The state fund is available to district’s to aid in the special education costs. She noted the district will have an out-of-district placement in the coming year, which is an added expense.
The capital outlay fund levy will be $1.80 per thousand, and the bond levy for the new school will be $1.19 per thousand. The district can levy up to $3.00 per thousand for capital outlay.
For taxes payable in 2021 for the general fund, school districts can levy a maximum of $1.443 per thousand for agricultural property; $3.229 per thousand for owner-occupied property, and $6.682 per thousand for non-agricultural property. The final levy will be determined when the budget is approved at a later date.
Initial figures show $7.947 million budgeted in the general fund; $2.557 million in capital outlay; $2.119 million in special education; $686,000 in food service, and $146,000 enterprise. The capital projects fund which covers the construction of the new school is $1.463 million.
It is anticipated that reserves will be used to balance several of the funds. They include $222,223 in the general fund; $553,946, capital outlay, and $131,067, special education. Downes observed that federal funds may be available to the district to offset costs realized because of the impact of COVID-19. The budget will be revisited at future meetings.
After the public hearing for the budget, the final regular meeting for the fiscal year was called to order. The board approved contingency transfers. “We can’t be overspent in functions, and we had to make some minor adjustments,” said Meyer. The transfers amounted to $19,555.
A supplemental budget resolution was also adopted to reallocate funds to adjust for overspending in certain areas. The adjustments were $28,835 in capital outlay; $73,720 in special education; $1,835,000 in capital projects fund; $54,500 in lunch service, and $3,400 in the enterprise fund.
“Hasslen is ahead of schedule on the new school,” observed Meyer. Earlier payment was necessary resulting in the capital outlay adjustment. The expenses are covered by bond proceeds. She also noted that more meals were served and OST expenses were higher than anticipated.
The regular meeting adjourned, and the reorganization meeting was called to order. Details of that meeting are covered elsewhere.
– Debbie Hemmer
Category:
Grant County Review
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