USD 257’s budget outlook for next school year, which starts Friday, looks appreciably better on the strength of cheaper health insurance premiums than had been anticipated.
Dr. Craig Neuenswander, superintendent of schools, told board members Monday night a quote from a company, which he declined to name, had a premium increase of about one-third of what Preferred Health, the current carrier, had proposed.
“I’m confident it (the quote) is about as good as we will get, but we do have a few others yet to come in,” he said.
The increase would be $94,600 for 195 employees, much more manageable compared to the $252,000 requested by Preferred Health, Neuenswander said.
Loss of state aid heading into the 2011-12 school year is $432,000. Neuenswander pegged fuel and casualty insurance increases at $25,700, leaving the district about $458,000 short.
To compensate, he proposed using $200,000 from contingency reserve — the district has $500,000 squirreled away there — as well as nearly $190,000 in reductions in various supplies, a $54,000 special education fund carryover and $110,000 saved through personnel changes to deal with the deficit, including the insurance premium increase.
He also pointed out that year-ending balances in several funds, annually supported by transfers from the general fund, were healthier than in previous years. But, he would be reluctant to recommend transfers back to the general fund until “we see what we need in each later in the year,” Neuenswander said.
Meanwhile, a property tax levy increase of about 3.6 mills will be needed to maintain the local option budget.
Again, state aid cuts are to blame.
State aid, figured on a sliding scale depending on enrollment and district wealth, is supposed to bear 61.52 percent of the district’s $3.124 million LOB, or $1.9 million. The state’s financial problems led to USD 257 to receive 91.7 percent of designated state aid this year and it will get 83 percent next year.
That leaves the district with a $187,196 deficit in the LOB, which will require the property tax levy.
The district levies 3.5 mills to support the capital outlay fund, used for equipment and repairs.
“We don’t want to eliminate the capital outlay levy, but it might be a good idea to lower it to offset the LOB increase,” he said.
Advantage is that the capital outlay fund no longer is supported by state aid; all money raised comes from local taxes.
For perspective, a levy of 1 mill raises $1 for $1,000 of valuation. For the owner of a $100,000 home, assessed for tax purposes at 11.5 percent, that translates to $11.50 for each mill levied.
BOARD MEMBERS approved two expenditures.
They spent $12,864 from School Improvement Grant funds for 48 netbook computers for use in elementary school classrooms. The devices have 10.1-inch screens and essentially are small laptop computers.
Another $7,850 was spent for software to install a computerized time card system to track hours worked by employees. An annual maintenance fee will be $2,050. Neuenswander said the program was from Management Advisory Computer Systems, which produces the district’s accounting software and means the “new program will integrate with our current payroll system.”
The program will be implemented over several months, starting with a small pilot program.
PRIOR to the business meeting, board members moved to the Iola High commons area to recognize retiring members Mary Apt and Deanne Burris, as well as Supt. Neuenswander.
Neuenswander will began work as finance director of the state Department of Education next month.
Jack McFadden will replace Apt; Burris’ husband, Mark, will take her seat.
