‘Deficit spending mode? is the way school officials described the situation as the Oxford Board of Education approved a revised 2005-06 budget last week.
‘The news is not good,? said Ron Franey, assistant superintendent for Oxford Schools.
Since the beginning of the school year there have been $955,000 worth of increases made to the $35 million dollar budget established in June 2005. That’s in addition to the $675,000 that was already taken out of the district’s fund balance at the beginning of the new fiscal year to help offset anticipated additional costs.
‘So now the total for this year is $1.630 million that’s excess expenses or over our revenue,? Franey said. ‘We’re in deficit spending mode for this school year.?
‘It’s not that we’re receiving a larger pay check these days, it’s that the cost of utilities has gone up,? Franey explained. ‘We’re not happy with this, but it’s what’s happened throughout the year. It’s too late to adjust anything in our budgets to offset it.?
Rising utility costs have been astronomical and hit the district much, much harder than expected.
‘The natural gas heating our buildings is up $350,000 this year,? he said. ‘Electricity is $100,000 more.?
‘Right now, we don’t see a light at the end of the tunnel for these utility costs,? Franey added.
To help counteract these increases, a utilities committee was established by the district and dialed down the temperature in all schools from 72 degrees to 68 this past fall. Teachers were also instructed to turn their lights off whenever there was a vacant room.
Fuel for bus transportation is skyrocketing as well, costing the district $100,000 more.
‘Diesel gas used to be cheaper than unleaded gas and that’s not true anymore,? Franey said.
‘Those items specifically (utility and fuel costs), I guess we can blame on (Hurricane) Katrina,? he noted.
Franey said school officials were also ‘shocked? when they saw the amount it cost to run the heated indoor swimming pool at the high school for one full year and that they may have ‘under-guessed? that annual cost.
Also increased was the district’s Center Special Education programs. Another $330,000 was added for students who are sent to other school districts for special needs. ‘We had a number of students move into our school district this year that needed those programs,? Franey explained.
The district’s Child Care Fund saw an increase of approximately $20,000.
Despite receiving $129,358 from gate receipts and a $496,000 supplement from the general fund, the Athletic Fund was increased $15,000 for benefits and retirements.
?(Some) see all the people at the football games, they think ‘these people are making a mint over there.? It doesn’t really happen that way,? Franey said.
Franey said the district’s financial difficulties forced it to borrow $2 million from Oxford Bank for school operations in October. The district plans to repay the loan April 7. This ‘is the first time we’ve borrowed in a few years for operations,? Franey said. ‘As the fund balance drops we need more monies to operate the school district as the year goes on.? As of June 30, 2006, the estimated fund balance will be $1,759,249.