As required by law, Clarkston schools now has a new budget.
School Board members now wait for the state to follow suit.
‘I don’t know what the state will do,” said Bruce Beamer, director of business services at the June 25 meeting.
General Fund revenue is estimated at $73.8 million, an increase of $800,000 over last year.
General Fund costs are estimated at $76.4 million, decreasing $2.3 million from last year.
Fund balance will be used to make up the difference of about $2.7 million, reducing it from $9.8 million to $7.1 million. This would maintain a balance of 9.26 percent of expenditures, close to the goal of 10 percent.
Beamer said about 10-percent fund balance is needed to pay expenses that start accruing in August ? state funding kicks in later in the school year. If the district can’t dip into its savings, it would have to borrow and pay interest.
State funding is projected to remain at $7,332 per pupil, though nothing in definite yet, he said.
‘There has been no communication from the state on fiscal year 2008,? he said.
Because state budget decisions are pending, Clarkston schools? budget is based on assumptions: no additional or cuts to state funding per pupil, and no growth in student enrollment.
Non-homestead taxes, collected on businesses, second homes, and rental properties in the school district, is projected to increase by $385,645, from $8.2 million to $8.6 million. However, due to Proposal A, state funding would decrease by the same amount to keep per-pupil funding the same.
‘If non-homestead goes up, state aid goes down,? Beamer said. ‘It’s a wash.?
Teacher salaries are frozen, except for contracted step increments, still under negotiation.
To preserve classroom instruction, many cuts were directed at support services, including maintenance, media, and building aides.
‘Support staff took a bigger hit in percentage than instruction,? he said.
General fund support of athletics will drop from $600,000 to $345,000, difference to be made up in new funding sources or pay-to-play, he said.