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By Steve Morris
“This is not good news,” said Rush City School Board member Gwen Goretsas after district business manager Laureen Frost informed the board of a projected $462,000 shortfall in the 2008 - 2009 budget. At the school board meeting Thursday, March 20, the board was informed the district would cover the shortfall by using the general fund’s year end fund balance, which is estimated to be $1.6 million at the end of this budget cycle.
Superintendent Vern Koepp said dipping into the fund balance eliminates the need to make cuts, but the district should move forward with business in a “cautious” manner. On Friday, Koepp added that the board would use “budget control measures” to protect the district from disrupting programs in the future.
The fund balance is what Koepp called a “safety net” for the ebbs and flows of operating the district.
Later in the board’s discussion, Goretsas said the district must be prepared to take some action. She proposed the possibility of adding athletic fees and predicted next year will be a “tough year.”
“It light of everything that is going on in the economy, we have to be cautious,” she said.
Adding athletic fees is something board member Carol Cook opposed. “I do not want to charge fees,” she told the board.
Koepp said revenue is decreasing while the amount of expenditures is increasing. The district has lost 38 students since the 2005 - 06 school year. During the meeting, Koepp reminded the board that more than 80 percent of the district’s budget is payroll.
In phone interview with the Post Review, Frost said the teacher’s increase in salary cost the district approximately $200,000. Also, she noted an increase in participation in the health care program all the new ball field all where significant factors in the districts projected shortfall.
The school board has faced similar budget situations in the past. Koepp said three years ago when a teacher retired they didn’t fill the position and they have reduced expenditures at the Family Center to accommodate the budget.
Koepp ended Thursday’s discussion by telling the board to “put their heads together” and bring any efficiency ideas to the next school board meeting.
“I tend to be an optimist, but this is one time I am cautious,” Koepp said. Later he added, “Enrollment is going down – it doesn’t look positive. The good news is we have a good fund balance.”
In other business, the school board:
• Approved the hiring of an assistant junior high track coach to help out this season. Koepp said Activities Director Bob Schlagel has someone in mind for the position.
• Advised Koepp to keep all options on the table concerning what to do about the Family Center property. Koepp said they are having a commercial appraisal done on the property and it should be complete by the board’s next meeting.
• Paid bills in the amount of $951,960.40.
• Heard a report from Jacobson Elementary principal Melody Tenhoff. She told the board I love the Read Month was a success with more than 125,274 minutes of reading recorded. Tenhoff reported second and third graders did a good job at the Academic Triathlon.
• Heard a report from high school principal Mark Saari. He told the board the Knowledge Bowl team finished 3rd in sub-regional competition. The team will compete at regions on March 31. Saari also reported Sophie Bossart and James Seegebarth placed first in duo interpretation at the conference speech meet. Marissa Belau placed 4th in extemporaneous reading, Chelcie Gamache placed 5th in Drama and John Gamache placed 5th in Prose.
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