Auditors recently applauded the school district for good fiscal management, but is Lake Orion Community Schools (LOCS) being too conservative in their budget?
Some staff members think so.
‘During recent times, I’ve seen programs being eliminated and fund equity increasing,? said Stephen Tighe, a science teacher at Lake Orion High School. ‘As a parent, if I had students directly impacted by this, I’d be quite upset.?
Since 2004, initial budget estimates show the district taking anywhere from $159,000 to $3.5 million from fund balance, according to information gathered by Lake Orion Education Association (LOEA) members.
Instead, schools added $875,000 to $3.6 million to fund balance each year except the current one.
During that time, union members took concessions in benefits, according to LOEA President Heather Olsen, who’s worked on two contracts in her four years as president.
‘The concessions were in the form of healthcare concessions: changing insurance, going to a higher deductable, higher co-pays, those kinds of things,? she said, adding ‘The deficits that they’ve predicted have not materialized and that puts a strain on the community when it becomes a pattern.?
According to audit information, 2009 is the first year since 2004 LOCS budgeted to dip into fund balance and actually did.
Initial estimates for 2009 took $3.5 million from fund balance; final projections were $878,000; and the actual budget took a mere $38,000 from fund balance ? a difference of $3.46 million.
‘The question that needs to be asked is, to what degree is it fair to our current student population and our community that they stay conservative? At what point do we look at the reality of the situation and say our previous budget projections haven’t materialized?,? Olsen asked.
Assistant Superintendent of Administrative Services Jillynn Keppler said the budget, first and foremost is meant to be a ‘fluid tool? that fluctuates.
‘Things change and that’s as expected,? she said.
She also noted the district has to budget in a ‘cushion,? which is why projections can be higher than actualized budgets.
‘School districts have to be in compliance with the Uniform Budget and Accounting Act, which means that when the board approves the budget, legally we cannot spend more than that because that is legally what they’ve appropriated,? said Keppler. ‘Therefore, you have to do careful budgeting to make sure you do not go over that. Hopefully we always come in slightly under what that budget amount was because we have to, legally.?
Keppler added that the difference between estimated and actualized budget amounts are not significant on a budget of close to $83 million.
Tighe doesn’t agree.
‘I know there are many unknowns in budget equations, but there is enough data to make more accurate assumptions,? he said. ‘While I appreciate Mrs. Keppler’s cautious budget projections, at some point, these need to be reviewed.?