School board approves next year’s budget
Published 9:21 am Tuesday, June 17, 2008
Thanks to the successful approval of the operating levy referendum in November, the Albert Lea School District will have one year where the budget will be in the black.
“It’s nice to have a balanced budget and we’re not spending in the reserves, and that’s thanks to the community approving the referendum,” said Albert Lea Superintendent Dave Prescott.
The Albert Lea school board Monday approved the 2008-09 school year preliminary budget. Overall, the total expenditures for the general fund saw an increase of 4.1 percent. However, $543,000 of that is for a health and safety increase, according to Chairman Ken Petersen.
If there was not a health and safety increase, the budget would have an overall increase of 2.5 percent to the general fund, which Petersen said is a “very, very reasonable increase” considering the rising costs of operating.
There is expected to be a $678,00 net increase to the general budget for the coming school year, compared to a $77,000 net decrease to the general budget for 2007-08.
School board member Jolinda Schreiber said the challenge with the budget is to be fiscally responsible now to keep from operating in a deficit in the future. The school board, she said, is trying to be conservative and responsible in planning today.
“I think we’re living within our means with that 2 1/2 percent when you consider inflation today,” Petersen said.
The budget saw a small increase in utilities thanks to the Energy Management Program keeping energy use down, said Prescott.
The total revenue expected for the 2008-09 school year is $40,303,000. Of that total, $7,121,000 are expected to come from property taxes and $1,938,000 are expected to come from other local revenue, according to the budget prepared by the Director of Finance and Operations Larry Kellogg. The state sources are expected to contribute $28,899,000, with federal sources kicking in $2,345,000.
The student population is expected to see a decrease of 69 pupil units from 2007-08 to 2008-09. This decreases the money received by the state, which is based on a per pupil total.
Total expenditures for the 2008-09 school year are expected to be $39,791,000 with the largest chunk — $20,863,000 — going to salaries. Other expenditures include benefits, purchased services, supplies, capital expenditures and debt service, according to Kellogg’s budget.
Overall, the school district will have an excess of $511,152 and, according to the budget prepared by Kellogg, an ending fund balance (combining reserved and unreserved funds) of $4,808,000.
When looking at the actual budgets from 2005-06 and 2006-07 plus the projected budgets for the 2007-08 through 2012-13 school years, 2008-09 will be the only year operating with a surplus. And that is after a $958 per pupil levy and $300,000 of add backs (items previously cut by the school board but added back to the budget after the levy passed), according to school district budget papers.
The actual 2007-08 budget is not yet official.
The total general fund balance, according to Kellogg’s budget, will be $3,574,000 for the 2008-09 school year.
The capital budget has an expected $1,362,000 available between the balance carried forward and the revenue. After many expenditures — including capital facilities, maintenance equipment, administrative technology, copiers, textbooks, athletics and computer replacement — the balance remaining after the 2008-09 school year is expected to be $64,500.
In other business, the school board:
– Tabled for a second time a resolution for a one-time transfer of $51 from the capital budget to the general fund. Petersen cited insufficient time to discuss as the reason to table.
– Approved a contract for school resource officer services to be provided by the school district and the city. It was decided between both parties that the net cost of providing two school resource officers be shared.
Half of the salary of the days worked in the schools by one officer will be paid by the school district in the 2008-09 school year. In the 2009-10 school year, half the salary and benefits for the days worked in the schools by one officer will be paid by the school district.
“This is one of those expenses that we did not plan on when we went for our referendum,” said Petersen.
Any donations, grants or levies received by the city or the school district with instruction for the funds to be put toward the cost of a school resource officer will be shared between the two parties. The contact will be renewed automatically unless the city or the school district gives six months written notice.
The Albert Lea City Council approved the contract June 9.
“Their budget is also stretched,” Petersen said, adding this is an example of one form of government putting the fiscal responsibility on another form of government.
This unexpected expense could potentially have an affect on class sizes and programs offered down the road, according to Petersen.
– Approved a bid from Ulland Bros. Inc. of $36,280 to mill and replace the blacktop of the parking lot at Hammer Field. The work would only be done on the parts of the parking lot that already have blacktop.
“This does not add to the budget,” said Director of Facilities and Transportation Bruce Olson.
– Approved changes and additions to the Southwest Middle School student handbook. The changes included more specific rules regarding safety, new lunch prices and the new summer school program policy. A section on plagiarism was added explaining it as a problem, which was not previously addressed in the handbook.
– Approved the substitute teacher pay regulation. Effective July 1, full-time pay for a short-term substitute will be $110 — an increase of $5 — for a full day (7:30 a.m. to 3:30 p.m.) in the 2008-09 and 2009-10 school years. Short-term substitutes for a partial day will be paid $16.50 an hour with a minimum of $20 and a maximum of $110.
Long-term substitutes working in the next two school years will be paid $110 a day for the first 10 days. Beginning with the 11th day, the substitute will be paid based on the current teacher salary schedule.
Replacement teachers will be paid based on the current teacher salary schedule.
– Approved a requested leave of absence and job share position for Lynn Keenan, a Southwest counselor, who will miss one day a week (Monday) for all of the 2008-09 school year. If for some reason this becomes a problem, Keenan will return Mondays.
– Accepted three donations for the school district. The Alliant Energy Foundation donated $1,642 to be put toward the Community Education After School Enrichment Program to purchase equipment.
The Albert Lea Medical Center donated $200 to the Area Learning Center Program, and the Albert Lea Noon Kiwanis Club donated $250 to the School Readiness Building Block Scholarship.
– Approved the Community Education advisory council members. As of July 1, Bill Danielsen, Ryan Shea, Jenny Hanson and Catherine Buboltz will start their first three-year terms, and Pat Palmer will start her second three-year term.
– Approved the Homebound Instructional Services, Student Publications and Student Transportation Safety policies.
– Approved nonresident agreements for two students attending the United South Central School District to transfer to Albert Lea Schools and for one student attending Albert Lea High School to transfer to Alden-Conger School.