By Megan Kelley

Review Writer

During the March 11 Lake Orion Community Schools school board meeting, Assistant Superintendent of Business and Finance John Fitzgerald went over the district’s budget development timeline, assumptions and three-year forecast.

The three-year forecast covers the fiscal years of the 2020-21 school year through the 2022-23 school year.

“The value of the three-year budget forecast is really a close look at the year that’s coming up,” Fitzgerald said. “Theoretically, we consider this first year forecast almost our first reading approach to next year’s budget, then it get’s into much more detail as we as we wind down the fiscal year (and) get into June.”

“The out years, in terms of those two years, we’re not going to land on the numbers in this forecast in year three. If we’re close I’ll be thrilled, but the value of these kinds of forecasts are trend analysis.”

It is anticipated that during these years, the district’s per pupil foundation allowance increase will be similar to last year’s, meaning the district will likely get between $125 to $250 more per student.

In order to be conservative with their numbers, the district is using $125 as their foundation allowance increase. This represents 92 percent of last year’s foundation allowance increase of $136 per student.

In the forecast the district uses the foundation allowance of $8,654 for LOCS and $8,311 for “generic” Schools of Choice in their 2020-21 fiscal year. This equates to a $200 increase from the year before, a district document showed.

With data provided by the Michigan Department of Education Taxable Value Management System, the district projects the property tax base of the school district has increased by 4.46 percent, resulting in a projected operating tax revenue forecast of $8,512,686.

Additionally, the aggregate wage base increased by two-tenths of a percent, reflecting the anticipated number of senior staff requirements that are expected to occur at the end of the 2020 fiscal year.

The biggest change on the expenditure side is tied to retirement systems, which the district plans will jump 28 percent, Fitzgerald said.

District documents also showed that over the next three years, the district’s operating excess is expected to increase.

In regards to the current situation involving COVID-19, the district is expected to take a financial hit.

“Events like, for example, the events that have occurred the last two weeks within the district associated with the Coronavirus, there will be costs associated with that impacting this year. So, that will show up in our final (budget) amendment,” Fitzgerald said.

The Lake Orion Community Schools Board of Education is expected begin meeting remotely in April.