By Joseph Goral
Staff Writer
jgoral@mihomepaper.com
 LAKE ORION — Lake Orion Assistant Superintendent of Business and Finance Andrea Curtis provided the Board of Education with a first reading of a budget amendment on Dec. 11.
The district experiences several budget changes throughout any fiscal year and addresses line items with significant (at least $100,000) changes. The district has approximately 4,200 line items in its budget, Curtis said.
Curtis focused primarily on the general fund, and said the amendment includes “multiple revenue and expenditure changes.” She also called the budget tight, adding that a 1% variance “could be a big hit.”
“Unfortunately, we are showing a decrease in our original budgeted surplus by $114,000,” Curtis said. “So, the budget surplus is now showing $145,000 approximately.”
Curtis also said the general fund’s beginning fund balance was adjusted to reflect the district’s actual audited ending fund balance as of June 30. The ending fund balance is around $9.7 million – representing 9.3% of the gross expenditures and transfers.
General fund significant revenue budget changes
The general-fund revenue budget decreased by a net $2,833,492 (2.64%) – bringing the amended total revenue budget to $104,530,430.
Significant revenue budget changes
Significant revenue budget changes were broken down by revenue source for the general fund revenue budget in LOCS documents, including local sources, state sources, federal sources and ISD, Medicaid and lease sources.
Local sources revenue increased by $143,404 to $13,583,579, and represents 13% of the total general fund revenue. This reflects increases in local property tax funding, rental revenue, athletic pass participation and football revenue, and more.
State sources revenue decreased by $3,101,492 to $80,454,214 – representing 77% of the total general fund revenue. This is due to a 6.31% rate decrease in 147c(1) funds and other revenue and grants.
Revenue from federal sources decreased by $108,317 to $2,681,769, and accounts for 2.6% of general fund revenue. The decrease relates to a “reclassification of special education early-on funding to State Source revenue,” Curtis said.
ISD and Medicaid source revenues increased by $217,913 from to $6,936,853, and represents 6.6% of the general fund’s revenue. This increase in the is related to revenue being reclassified from local sources for career-focused grant funds.
General fund expenditure budget changes
The general fund’s total budgeted expenditures and operating transfers-out decreased by $2,719,111 (2.54%) – bringing the amended total budget to $104,385,268.
Significant expenditure budget changes
Significant expenditure budget changes are also broken down to significant changes in LOCS documents. These changes impact seven areas including instruction, pupil support services, instruction improvement services, general administration, operations and maintenance, transportation services and athletic services.
Also included is an adjustment to offsetting 147c(1) costs. These costs decreased in by $4,259,746 because the state reduced the percentage from 16.89% to 10.58%.
The instruction basic programs and added needs budgets decreased by $3,698,122 (5.7%) to $61,562,773, primarily relating to the state 147c(1) costs.
The pupil support services budget increased by $279,034 (3%) to $9,454,213 because of known retirement costs, reclassification of software costs, nursing costs, ancillary wages and benefits and grant costs.
The instruction improvement support services budget increased by $311,246 to $3,387,638 because of salary and benefit costs being reclassified.
The general administration budget decreased by $303,242 to $1,434,096 because the absorption of the director of secondary curriculum position.
The operations and maintenance budget has increased by $286,071 (4%) to $7,464,197 because of increases in property insurance, repairs and maintenance based on the previous year’s costs, natural gas, electricity and security training costs.
The transportation services budget increased by $237,120 (4.1%) to $6,092,459 because of an increase in salary and benefits, purchased services and summer transportation costs charged to the ESSER III 11t grant.
The Athletic Activities budget increased by $145,475 (8.9%) to $1,821,375 because of officials cost increases, contracted coach and security costs.
Other funds
Several other funds are involved in the amendment, and were adjusted to reflect the district’s year-end expectations according to LOCS documents.
The first, the community-services-special-revenue fund 230, saw a $493,916 revenue increase to $4,064,296, and an increase in expenditures by $331,037 to $3,863,591.
The second listed is food-service-special-revenue fund 250. This fund’s revenue decreased by $62,765 to $3,566,330. Expenditures also decreased, by $20,413, to $4,372,748.
The final fund listed is the 2024 capital-projects-bond fund 430, and has an addition of financing sources and expenditures of $3,532,098 from the sale of bonds to purchase the Orion Center.
During the meeting’s finance committee report, Board Treasurer Jake Singer said the committee is “okay” with supporting passing the amendment, but there is “a lot of concern.” The committee was hoping that a substantial portion of one-time funds would be reflected in increasing the district’s surplus.
Instead, other expenses left the district with a smaller surplus than it had before.
“So our biggest concern is … they did not increase the foundation allowance,” Singer said. “They gave us one-time money this year. So will they give us that same amount whether they put it in the foundation allowance?”
The second reading for approval will be in January, according to Curtis.