Thursday, October 7, 2010

Sustaining Programs During Challenging Times

While only three weeks into the school year, the district can pinpoint several important fiscal projections for the upcoming year. The outlook is not optimal. Several categories of revenue will fall far short of expectations compounded by rising special education costs.

Tuition revenue will be lower than anticipated. Last year, the district had six tuition students. This year, the district does not have any K-8 tuition students.
Bank interest rates remain virtually nonexistent; therefore investment revenue will be less than forecasted. The total shortfall in regular tuition is estimated to be approximately $80,000.

Expense forecasts are expected to be less than favorable. Special Education costs continue to rise above projected amounts reaching a shortfall of nearly $200,000.
On a positive note, the district has received $12,840 in unanticipated federal stimulus funds and a $5,000 grant from the Amelior Foundation. In addition, the preschool program has served as a revenue source and a savings. The program allows us to keep out-of-district placements within the district. Out of district placements can cost up to $50,000 in tuition and transportation fees.
The initial total shortfalls for the year could total as much as $232,000, or 2.5% of the total budget. The district will be held to a 2% property tax cap for the 2011-2012 school year.

Without state aid to balance this deficiency, it will become increasingly difficult to sustain programs and opportunities. The Board of Education is committed to maintaining an optimal learning experience for every child and will continue to explore all funding sources and competitive educational grants.
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