School budget climbs six percent

The Sisters School Board has adopted a school budget for next year. At $13,184,972, the budget is $733,711 or about 6 percent more than last year's budget of $12,451,261 with essentially no increase in staffing.

More than half of the increase goes to salary and benefits.

The budget cuts contingency funds by more than half, from $269,366 in the current year to $112,000 next year. It also has no proposed ending fund balance or "cash carry over" for the following year, dropping that amount from $65,000 to zero.

Board member Christine Jones expressed some concern at the board meeting on June 3, when the budget was adopted, about the razor thin contingency.

"Is there a sufficient cushion with an ending fund balance of zero and contingency of $112,000?" she asked.

At an earlier meeting of the budget committee, she had suggested that a recommended contingency was closer to five percent of the total budget.

Superintendent Elaine Drakulich mitigated some of those concerns by indicating there was the possibility of additional revenue that was not yet included in the budget, possibly as much as $200,000. This includes payments for students transferring into the district and more from the state.

"There is a favorable state revenue forecast ... projecting 20 percent increase (in funding)," she told the board. She also indicated that the district did not yet have all funding. These extra monies could be used to make up the contingency or the ending fund balance.

Jones said "I am in this difficult position, that if there is on the horizon close to $200,000 in revenue there is a bigger cushion for contingency ... but do we pass the budget tonight or come back? When will we know that?"

Business Manager Sandy Tartaglia responded that some information on average daily membership would be in this week, with other information from the department of education by the end of the month.

Board member Jeff Smith said he would vote for the budget, "partially because I think the budget is based upon a number of worst-case scenarios, in terms of underestimating revenues and overestimating expenditures. I am also pleased that during the course of this year ... Elaine has spent less money than she was allowed to spend, and I expect that to continue in the future. I expect the ending fund balance will be larger than expected."

Tom Dumolt said he was pleased to hear the district could receive $200,000 to put in a beginning fund for next year. But he was concerned about the impact of declining enrollment, since the state pays the district based on "average daily membership weighted" or ADMW.

"I am still concerned that ... our ADMW is going to continue to decline, (putting) more pressure on budget for following year," he said.

Dumolt also did not like the impact to teachers and staff of last-minute job cuts.

"If we are making hiring decisions now, and July we have to cut, I don't like that at all," he said.

Glen Lasken said "I am going to trust in our superintendent and finance team. I am pleased (Superintendent) Elaine Drakulich has been responsive to our concerns and has tweaked the budget to increase contingency from a month ago. The forecast is we will have more."

Board chair Mike Gould said "Enrollment is going to shrink. Expenditures will be up. A year from this date there is a scenario where we don't have 6 percent (increase from this year) and not have the 10 percent (if local option fails) and that is a shock to the system. There is concern about the philosophy going forward. We are rolling the dice with food, fuel, and (salary) increases.

"We are depleting the savings account and hoping everything is going to work out. This makes me uncomfortable," Gould said.

Jones said if the anticipated revenue "should not materialize I intend to reopen the question in July." She indicated the board "should discuss what are a reasonable set of budget cuts."

With that, the budget passed unanimously.