SAD 17 worried over possible spending gap
OXFORD – Revenues are down, expenditures are up and, says SAD 17 Superintendent Mark Eastman, the state subsidy is a puzzle.
The first 2004-05 budget projection shows there could be a $1.3 million gap.
“Any ideas? Suggestions? Comments? Rich relatives?” he asked of school board members meeting Monday night.
“There doesn’t appear to be an end in sight to the tight times,” Eastman said. “I hope it doesn’t impact our academic programs.”
Business Manager Cathy Fanjoy said the budget shortfall was based on receiving no increase in revenue, either local or state, while expenditures increase as predicted.
Eastman said anticipated spending increases include:
• Medical insurance, up $200,000 to $400,000;
• Pay raises, up $500,000;
• And fuel oil and diesel prices, still rising.
He said electrical costs have stabilized due to a long-term commitment to the district’s provider.
The 2003-04 budget was $29.8 million, a $705,922 or 2.42 percent increase over the 2002-03 spending.
He said the budget carryover, $407,000 last year, will be down to about $100,000 for 2004-05. Lower interest earnings will result in a $30,000 revenue decrease.
He called the state subsidy – general purpose aid – a puzzle. He can’t fathom how state budget shortfalls and a school funding referendum dispute will be worked out.
“I don’t know; I just don’t know what the subsidy will be until the gubernatorial committee reports,” Eastman said. “I don’t even have a good crystal ball guess.”
He also said the Department of Education approved and forwarded a measure to the Legislature that would cut SAD 17’s reimbursement per pupil per year by $14 and cut the overall reimbursement from 62 percent to 43 percent.
Transportation Director Ronnie Deegan estimated that the per pupil cut would result in a $52,000 loss. He did not have figures available for the loss due to drop in percentage of reimbursement.
Eastman said one bright spot was that enrollment is up and that could bring as much as $150,00 in revenue, maybe.
He issued a budget directive seeking to submit a budget that is down from 2003-04 and said he is asking cost center managers – those responsible for creating departmental budgets – to reduce their requests by 5 percent.
The cost center budgets are due Jan. 15 and will be reviewed by Eastman, Fanjoy and Assistant Superintendent Mark Laroach from Jan. 26 -30.
The budget committee review of the requests begins Feb. 25 and continues weekly until March 24.
On March 31 the budget committee will finalize proposed spending and on April 4 the budget will be presented to the school board.
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