District #139 tightens belt

Posted 3/15/01

District #139 tightens belt

By MaryHelen Swanson

The Rush City School Board, March 8, took some major actions to thwart off serious financial troubles due to increased costs of operation and potential loss of additional funding for the coming years.

With a cold and snowy winter still hanging heavy on the area, it became necessary to increase the budget line for this year in snow removal and energy costs.

The board also took action to direct administration to consider staff/program cuts for next year in light of the tenuous education funding situation.
For this yearís situation, the board approved a revised budget that included the following increases:

ï snow removal - from $5,300 to $13,300. The district has already paid out $9,940 in snow removal this winter.

ï gas and oil - from $30,000 to $40,000, a cautious step, noted Superintendent Tim Eklund, not knowing how the rest of the winter will be. Eklund said this cost to the district should fall under the $30,000, but with fluctuating prices, he opted for a more conservative figure.

ï kitchen expenses of heating fuel from $11,000 to $19,000, kitchen electricity from $61,000 to $70,000 and additional heating fuel for the buildings $13,552 to $19,500. Again, Eklund stressed these increases may ìbe a little stronger than need beî but he is taking the conservative approach.

Other budget revisions included an increase in computer equipment from $24,500 to $54,000 and the addition of $10,000 for contracted services with the DLR Group for work with the space needs task force.

Other utilities in food service were increased from $4,000 to $8,000 and utilities at the community center were upped from $750 to $3,000, although Eklund said the $750 might be enough.
More money was budgeted for gas at the Family Center (from $11,300 to $18,000) and at the recreation center (from $13,050 to $23,500).
The changed totalled $102,598, of that amount $54,989 can be attributed to energy cost increases, Eklund noted.

These extra funds come out of the General Fund, Eklund said, again stressing he might have been on the strong side on some of the areas.
When the board accepted the changes, member Bill Kieper asked Eklund if the district should impose a spending freeze.

Eklund said it was not necessary.
Later in the meeting, however, the board went on to approve a resolution directing administration to make recommendations for reductions in programs and positions due to the financial condition of the school district.

It states that a reduction in expenditures must include discontinuance of positions and discontinuance or curtailment of programs, including which teachersí contracts might have to be terminated and not renewed, or which teachers might be placed on unrequested leave of absence without pay or fringe benefits.

Eklund, saying he hasnít seen a resolution of this type for years, but said it was necessary in light of whatís ahead for the district.

The discontinuance or curtailment of programs would be based on the governorís proposal, he said, adding ìwhen we look at the budget and whatís coming up ahead, itís not good news.î

He went on, ìIf there is a zero percent increase next year itís going to have a negative impact on the school.î

He said the district can stand some financial stress because of its rainy day fund, but he also reminded the board they had just used a healthy portion by approving the increased budget items.
ìI donít care what the Governor said,î Eklund went on, ìif thereís zero percent weíre going to take a hit. We do not have any way of generating revenue in our district.î

Costs will go up, he said, energy costs, cost of staff . . .

Right now the district is looking at double digit increases in medical benefits and the individualsí costs have gone up too. The reality, he said, is that the money has to come from somewhere.
ìWeíre going to pay bills next year and itís going to be higher costs,î he went on. He said if there is some way to reduce those costs by reducing programs or staff the district will have to do something.

Itís ìmostly in anticipationî he said, adding ìthis resolution is in preparation for what might happen.î

In other business at the meeting last week, the school board:

ï Received ìNotice of Desire to Negotiateî new contracts from the Rush City Principals Association and Rush City Education Association.
ï Hired Jeremy Albright and Stuart Lang as assistant varsity football coaches.

ï Adopted the school calendar for next year with a week-long spring break in March and commencement 2002 on June 2. School begins September 4, 2001.

ï Learned that fuel costs have been eased somewhat by the use of the interruptible system at the elementary building. When interrupted, fuel oil from a storage tank has been used to save on gas. At the high school, the geothermal heating system has helped keep energy costs lower.

ï Was visited by the parents of Sam Anderson, the 2000 graduate who passed away from illness a few weeks ago. They came to say thanks for all the support.

ï Learned that elementary students collected $380.83 (about 220 pounds) of pennies for the Pennies for Patients project sponsored by WCCO and the Minnesota Leukemia Society. The money is used to help leukemia patients with outpatient expenses and to support leukemia research. In the past nine years, the children have collected a total of $2,469.43.

ï Learned that the Junior High Declam team ended its season taking 4th place at the Two Rivers Conference meet in Onamia. During the season, 48 students in grades 7-9 competed - an all-time high.

ï Viewed a presentation on an instructional technology project through the East Central Minnesota Education Cable Cooperative and the St. Croix River Education District. It will help teachers bring technology-enhanced lessons, projects and standards-based assessment to 100 classrooms throughout East Central Minnesota. Four Rush City teachers are participating: Paula Bengston, Wayne Peshia, Kevin Smith and Barb Westman. The school receives six lap top computers and some software plus training and any assistance needed.