Failed referendum will force district cuts

By Barbara Brown
The North Branch school district will be forced to reprioritize its budget for the 2003-2004 school year because the operating levy referendum failed last week and cuts will be made.
Voters said yes to a new school building but no to tax increases to provide additional money per student to get the district through the next seven years.
The first question on the
ballot ñ to sell $27 million in bonds for a new school and repairs to existing buildings ñ passed after its third presentation to the voters.
The second levy question on increased operating budget from taxes failed in Stacy and Harris, but passed in the North Branch precincts, even though the votes were not enough to carry it through the entire school district.
Certified results in the school levy election were:
Ques. 1: 4,097 yes, 3,887 no
Ques. 2: 3,472 yes, 4,301 no
Ques. 3: 3,281 yes, 4,319 no
Superintendent Dr. Robert Stepaniak said the school system administrators and board will have to buckle down at the start of the new year and decide where cuts can be made to save money.
Stepaniak said the cuts generally will be from budget line items that would least negatively impact students.
ìWe wouldnít immediately run to lay off staff because that has a big impact on the kids,î he said.
The administration in all the schools will be expected to present areas where budget cuts could be possible with the least amount of impact on educating students.
The district office also will be asked to look at districtwide changes that could be made to economize, Stepaniak said.
One of those areas could be in-town busing, but the concerns that one issue raises are how the students will get to school with few sidewalks and heavy traffic in the area.
Stepaniak said the problems that arise with just the transportation question are indicative of the long road ahead for next school yearís budget. He said each suggested cut or decrease in expenses could have legal, safety, welfare or educational impacts.
ìThe board is going to expect the administration come with a proposal,î Stepaniak said Monday.
After the board weighs the pros and cons of each suggested cut, Stepaniak said, it will make its own decision.
Stepaniak said two places the board may not be able to look for cuts that would improve the operating budget picture are Community Education and Early Childhood Family Education.
Each of those programs is run under a different budget from the one that runs the primary, middle, intermediate and high schools and the Alternative Learning Center.
He said among the most likely cuts are not hiring new teachers to fill posts vacated by retiring or quitting teachers, and pushing the envelope when it comes to class sizes.
We may have to do some experimenting and see how many students can be in one class and still be effective,î he said Monday.
As nerve-wracking as Tuesday night was for the district staff and for school board members, Stepaniak said finally having the building referendum pass was a great relief.
Weíre really grateful that weíve got the building,î Stepaniak said Monday. ìIt gives us something positive to focus on as we move ahead.î
Positive aspects to the passage of the building question now is that interest rates are low and the slowed economic atmosphere could bring lower bid prices from construction firms that need work, Stepaniak said.
District finance director Randi Johnson said the board would not be allowed to ask the voters for an operating levy again until next November.
ìThe board has to decide in the meantime if they are going to continue to ask or are we going to live without,î Johnson said Monday.
ìRegardless, weíre going to have to make some reductions for this year.î
The district is facing a $2.2 million operating budget deficit for the 2003-2004 school year, Johnson said.
While the state does not require the district to keep any specific amount of money in reserves, the boardís habit has been to have about 8 percent of its annual expenses covered in reserve funds, Johnson said.
ìThe question becomes: ëDo they take a risk and pull it down further and defer cuts to the following school year or do they make the cuts now?í,î Johnson said.
Johnson said reserves are just like an individual savings account. ìYou can only use the money one time and then its gone,î she said.
Reserve money does not get replenished through legislative order. It is a decision left to the school district leadership.
Johnson said if the board asked her input as of Monday should would recommend that the board examine transportation and groundskeeping as the first two items to cut expenses.
She said cutting personnel probably would not be the first place the board would make cuts. About 475 people are listed in the districtís personnel rolls.
Johnson said the first budget recommendation from governor-elect Tim Pawlenty will help form the boardís direction.
She said the district will still take a conservative approach to the budget, but that first recommended gubernatorial budget helps give an idea of priorities and how much funding the district could expect.

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