East Grand Forks Public Schools could see a surplus of about $750,000 for this school year, an amount that Superintendent David Pace said could help offset projected rising costs next year.
The School Board began planning its budget for the 2010-11 school year at Monday's meeting and will need to have a budget in place before the next fiscal year begins July 1.
One topic that came up at the meeting was the district's enrollment, which has stabilized over the past five years and increased by about 1.5 percent this year to 1,741 students.
"We're running pretty good," Pace said. "This is the second year that our enrollment's been up."
It's an important trend because state aid payments, the bulk of Minnesota school districts' funding, are based on enrollment counts. And it's a change that administrators are glad to see because enrollment has seen "significant declines" since 1997, Pace said.
ADVERTISEMENT
"I don't foresee that we're going to see a yearly 1 or 2 percent increase," he said. "But stable in this day and age is good."
Planning
Pace said the district is projecting a budget surplus of about $750,000 this school year. That's a good sign, especially since officials are starting to plan for rising expenses and lost revenue next year.
Higher salary and benefits costs for district staff accounts for an extra $249,000, and another $200,000 will be needed for increasing utility and supply costs as well as replacing old equipment.
About $12,000 in additional interest payments will also be due next year because of short-term borrowing that became necessary when Minnesota delayed a portion of its school payments.
Lost revenue is also a big factor, Pace said. The district received economic stimulus funding for a variety of projects this school year, but that one-time funding will not be there next year.
All together, the district expects to see a $641,000 increase in expenses, a big chunk of the $16 million total budget right now. The expected surplus can cover that amount, but he said it's important to plan for future rising costs as well.
"Will our projected surplus this year be equaled next year?" Pace asked. "That's where we have to determine how much we have to reduce."
ADVERTISEMENT
He said the district has positioned itself well by increasing revenue and cutting costs in the past. Still, the future budget largely depends on state actions and potential cuts to school funding.
"We aren't looking at having to make budgetary cuts before any more cuts come out of St. Paul, which would just double things," Pace said.
Johnson reports on K-12 education. Reach him at (701) 780-1105; (800) 477-6572, ext. 105; or send e-mail to rjohnson@gfherald.com .
