Fund equity to make up school deficit
Published 10:08 pm Wednesday, June 24, 2009
By By NORMA LERNER / Edwardsburg Argus
EDWARDSBURG – The Edwardsburg Board of Education adopted its 2009-10 general fund budget Monday night showing revenues of $19,663,490 and expenses of $20,561,556. The deficit of $898,066 was taken from the fund equity.
Presented by Anne Flautt, chief financial officer, she said the deficit figure was increased from an April deficit forecast but is primarily due to the decrease in state categorized revenue by $110,330 plus the cost of a new kindergarten teacher at $60,703 and new World History and Michigan History books at $28,094.
She said student membership is figured at $7,316 per student, the same amount received in 2008-09, based on the February, 2009, count. The disturbing news is the state aid membership revenue has been reduced by $530 per student which amounts to $1,367,389. However, the state will use remaining federal stimulus funds to offset the deficit in the state aid fund. She added, recent information suggests schools will receive reduced funding for categoricals. This is subject to change depending on economic status of the state.
The school received the 2009 taxable value for the 18 mills on non-homestead property and 6 percent mills on commercial personal property amounting to $1,603,345. This too is used for operation, Flautt said.
Salaries are computed using current rates, and all union contracts are in place through the next school year. She said in addition to the one new kindergarten teacher, replaced was a contracted speech therapist with a hired teacher.
All employee groups contribute to the cost of health insurance. Retirement reflects the state's increase to 16.94 percent.
At Risk dollars continue to be designated for social workers in the district, the new summer credit recovery program for high school students, lunch transfers for breakfast and the police liaison officer.
Included are professional council dollars for the K-12 curriculum adoption of approximately $300,000 and $37,000 for adoption of the new high school business curriculum.
Also there is continued support for the "Virtual High School" through Michigan State University for the senior high school and Nova Net for alternative education and credit recovery. Also budgeted are costs for dual enrollment with Berrien Math and Science Center, Indiana University of South Bend and Southwestern Michigan College and tuitions to the Elkhart Area Career Center.
Maintenance expenditures include the expansion of the alternative education facility by one room.
Budgeted for technology is an upgrade to Comcast as the internet provider, a new district-wide email system plus upgrades to all teacher computers and high school business computers. Also budgeted are high school classroom furniture, replacement copiers for the middle school and additional risers for the performing arts center.
The fund balance as of July 1, 2009, is $7,719,470. The subtraction of the deficit expenditure budget of $898066 leaves a fund balance of $6,821,404.
Flautt noted, "As you know, there continues to be significant uncertainty surrounding the state budget. It is our hope, however, that barring unforeseen circumstances, we will be able to bring the forecasted deficit down at our next budget revision."
Prior to the budget adoption, a public hearing was held on the proposed budget. It was to be adopted by July 1.
In other business, Athletic Director Kevin Dean recognized student Lanie Ford who qualified for All State competition in track and field. Varsity Baseball Coach A. J. Gaideski was named Coach of the Year in the Lakeland Conference.
Adopted was the Michigan High School Athletic Association Participating Resolution. This is for the high school and middle school athletes to participate in state and regional tournaments.
The food service contract was awarded to Chartwell's of Grand Rapids for $496,441.