School board approves revised budget

 

After several years of increasing enrollment, Albert Lea Area Schools saw a decrease in enrollment in the last year, the district’s director of finance and operations said Tuesday in front of the Albert Lea school board.

Jennifer Walsh said the district’s preliminary budget was created prior to the Minnesota Department of Education’s calculation of final 2018-19 enrollment figures, so when numbers came in lower than anticipated, that affected basic aid revenue the district received from the state for the 2019-20 school year.

The district ended the 2018-19 school year with 15 fewer students than projected and started the 2019-20 school year with 22 fewer students than the number at the start from the previous fall, Walsh said.

As a result, she said the basic aid revenue for the district has been shifted down $358,000 for this year, a number which was offset by about $53,000 for declining enrollment aid.

Albert Lea Superintendent Mike Funk said the district had seen slight increases in enrollment since 2012 prior to this year. He noted his concern is now with industry in the community as a result of business closures in recent years.

“What is happening in the wider Albert Lea is finally impacting the district,” Funk said.

In August 2018, Funk reported to the school board that the district had its highest enrollment at the start of the school year in the last decade.

Walsh and Funk said Tuesday that projections show enrollment leveling off or slightly decreasing.

The school board approved changes to the district’s budget because of the changes in this revenue, along with other revisions for the current budget.

Some of the other changes included the following:

• Walsh said due to funds rolled over from 2018-19, federal revenue increased by about $477,000.

• Because of a new accounting rule, student activity accounts will now be in the general fund. Revenue and expenditures were listed at about $432,000. Walsh and others are reviewing what qualifies to be in the account.

• Walsh said special funding from the state for Safe Schools is up $123,000.

• Revisions to general fund expenditures included adding a licensed practical nurse at Halverson Elementary School for about $34,000, a property insurance increase of $24,000, an increase in the utility budget by $68,000 to better reflect actual usage and an increase in health insurance toward $50,000 to match anticipated expenditures, among others.

Walsh said overall the Albert Lea district has done an “outstanding” job fiscally.

About 82% of the district’s general fund revenue comes from state aid, 11% comes from a local levy, 4% comes from federal aid and 3% comes from other sources.

Regarding general fund expenditures, almost 80% is spent on salaries and benefits.

Look to the Tribune for more from the school board meeting in Thursday’s newspaper.