By By JOHN EBY / Dowagiac Daily News
Dowagiac Board of Education Monday night at Patrick Hamilton Middle School adopted its first deficit budget "in at least 12 years," according to Superintendent Larry Crandall.
Board members made the final 2004-05 budget revision to reflect revenues of $21,274,040 and expenses of $21,843,583, or $569,543, leaving a fund balance estimated at $3,457,262.
Fuel prices which soared during the last school year added $21,000 to transportation spending.
For 2005-06, general fund budget revenues are projected at $20,835,954 and expenses are pegged at $21,721,675 for a projected deficit of $885,722.
The deficit "we are projecting will be reduced considerably," Crandall predicted. "Two areas we think will help reduce that" will be student loss likely less than the 35 projected for a blended enrollment of 2,647.
Also, "We have been working on a health insurance package for administrators and support staff personnel. We're very close to having a tentative agreement wrapped up that we can bring to the board in July. If that does come to fruition, that will be considerable savings there."
Thousands of parents, educators and school board members will be converging on Lansing today for a "K-16 Coalition" rally to heighten the Legislature's awareness.
The superintendent noted a statewide survey by the school business officials association which found: 51 percent of districts would lay off employees for the upcoming school year; 81 percent would reduce staff size through attrition; 65 percent would cut spending for services and supplies; and 79 percent would reduce cash reserves to balance the budget.
Assistant Superintendent for Business and Finance Hal Davis said the school service fund budget (food service and athletics) is balanced at $1,174,215.
The debt retirement budget projects a millage rate of 3.774 mills for 2005-2006 on all real property.
Davis said budget assumptions include: a state foundation allowance of $6,875 fulltime equivalent, up $175; a health insurance contribution as negotiated in contracts; retirement rate increases of 1.46 points to 16.34 percent; salary increases per contract settlements; all grants funded at break even; property insurance increasing 5 percent; $190,000 in projects from fund equity, including a new phone system and a new bus; and $200,000 in textbook and curriculum purchases.
Monday night the school board exercised its option to purchase an additional 40 acres at the new middle school site at the same $8,500 price as the initial 60 acres, for a total purchase of about $339,000.
The board agreed to scale back its press box, bleacher and concessions building project at the new middle school after a second round of bids exceeded the budget. Dowagiac will delay the concession building for now and pursue only the $200,509 represented by the press box and bleachers, including a $25,000 scoreboard.
Crandall said between 250 and 300 people took advantage of Saturday's first official public open house for the new middle school at 57072 Riverside Drive.
Additional open houses are planned on Sunday, July 17, and Sunday, Aug. 21.