Seven ‘ayes? from Oxford school board members unanimously approved the $39.8 million budget for the 2009-10 academic year at their June 22 meeting.
The downside is Timothy Loock, Assistant Superintendent of Business and Operations, has already figured, the district will begin the year in a deficit of $363,682.
Last year began the same way with a deficit of $423,979. However, over the course of the school year, the district made up the difference through various budget cuts.
‘We are in such uncharted waters with state and federal funds changing,? said Loock. ‘We don’t know if we will balance out like we did last year.?
Two new programs were added to the school budget, which takes effect July 1.
The district begins the All Day Every Day Kindergarten program this fall and the price tag to start it up is $450,000. The cost covers hiring six new teachers and purchasing supplies, materials, classroom furniture and computers.
A special education program will also be implemented in the fall. As a result, the district will experience a 2 percent increase in special education revenues as students will be taught here instead of attending programs outside the community.
The school system will actually be saving because money because it will no longer have to transport these students outside the district.
According to school officials, the state will reimburse the district 90 percent of the $775,000 cost to get the special education program started.
Oxford will also be getting its share of the $787 billion in federal stimulus money approved by Congress and President Barack Obama earlier this year.
Loock is confident the district will receive about $500,000 in stimulus funds to be used for expenses related to the special educationWhile all this additional money is good news, officials are anticipating some decreases in their revenue-stream.
Loock shared with board members the changes they will see, including the state’s plans to cut $110 per student. He noted that the amount could increase.
When it comes to the idea of new students generating more revenue for the district, officials are taking a conservative approach.
‘Hopefully we will see more students in the fall,? Loock said. ‘But we won’t know that.?
As a result, the district’s assuming there will be no increase in students from the February 2009 count.
The number of students is balanced between families moving out of the district due to the state’s sinking economy and families moving into the area.
Another assumption that doesn’t bode well for the district is a 6.25 percent decrease in the taxable values of local properties.
Increased expenditure assumptions include salary negotiations for eligible staff, a wage increase of 0.5-1.5 percent depending on the position or assignment, a 16.94 percent Michigan Public School Employees Retirement System rate effective on Oct. 1 and a 2.3 percent increase in health and other insurances.
Schools will see a projected 8.8 percent decrease in utility costs from the district’s effort to conserve and lowering costs.
Loock said they are trying to preserve the fund balance as much as they can, but will use some of it to stabilize programs.
Currently the fund balance is 12.5% of the operating budget.
Trustee Mary Stein expressed her concern about drawing from the fund balance next year.
‘Just around the corner things are going to get much worse,? she added. ‘I am really concerned we should take some steps now at this time and not to draw from the fund now.
‘We will be facing more cash flow challenges,? Loock explained. ‘We will have to be looking at ways to provide services more effectively and ways to do business more effectively. That means making tough and unpopular decisions.?
‘We really have to look at how we do business and what we pay for services,? he noted. ‘Right now, I don’t know where else we can cut. We certainly will have our work cut out for us.?