A positive financial outlook will allow School District 55 to add three teaching positions next year under a budget proposed Monday night to the district’s budget committee.
“The overall financial picture presented is the most positive in my four years with the Sweet Home School District,” Supt. Larry Horton said. “We are looking for a few moderate restorations.”
Specifically, the district plans to add two elementary school teaching positions to help maintain smaller elementary class sizes, Horton said. The positions will be at Oak Heights and Hawthorne elementary schools. The budget also includes a new alternative education teacher at the high school to provide students with additional learning opportunities.
The district also plans to set aside $300,00 for future maintenance needs. Of this amount, $200,000 is targeted to replace the heating system at Pleasant Valley School. The building is currently leased to Little Promises, a child care program. The district wants to be prepared in case enrollment growth requires the school to be reopened. Another $100,000 will be reserved to reconstruct the high school football stadium bleachers during summer 2008.
The district’s overall budget totals $28,186,226, up from $24 million in 2005-06, including a general fund budget of $18,261,620. It assumes that a charter school proposed by People Involved in Education will open within the district next year at a cost of $318,700. The budget does not reflect possible revenue generated by students coming to the charter school from outside the district.
The budget also includes $175,000 in lottery proceeds that the legislature approved in a special session on April 20.
Business Director Kevin Strong credits the improved financial picture to additional state revenue, enrollment growth and higher interest rates on investments.
The budget is proposed with three unresolved issues outstanding, Horton said. The first is that the proposed budget is based upon the best information available at the time of development, the most recent state funding forecast for the 2005-06 fiscal year published in August.
“We calculated our 2006-07 beginning fund balance assuming that actual 2005-06 state funding will exced the August forecast due to higher statewide proeprty tax revenue and district enrollment growth,” Horton said.
Second, the budget assumes that 72 “weighted students” (kindergarten students equal .5) will attend the charter school, Horton said. “A key budget assumption is that any enrollment losses at the distric’ts other schools because of the charter school are offset by student population growth in the community.”
Third, “the (Public Employees Retirement System) is still very much an unknown in regard to dollars required to meet future and current obligations,” Horton said. “Investment performance and the outcome of outstanding litigation will have a significant impact on PERS rates in the years ahead.”
Part of the increase in the budget is from additional state funds, approximately $2.2 million; enrollment growth; and the special education waiver, Horton said. Also, $1.5 million of the increase stems from an accounting change where the district now includes student body activities in the district’s overall budget.
The remaining increase is largely due to growth in the district’s PERS debt service funds “as we set aside resources to ensure we can meet future debt service requirements,” Horton said.
The 2005-06 carryover of approximately $1.5 million will be spent down to approximately $1.275 million, 7 percent, during the 2006-07 budget year, Horton said. This amount becomes the beginning fund balance for 2007-08.
Utility costs will increase by 14 percent in the 2006-07 budget, from $710,500 to $807,000. This includes a $25,000 increase to $115,000 in fuel costs.
Teaching, administrative and classified salaries will be increased by steps with an additional 2.5 percent to their salary schedules. Certified and administrative insurance caps increase to $750 per month, and the classified cap will increase to $725.50 per month.
A second budget committee meeting is scheduled for 7 p.m. on May 1 at the district office board room, located at 1920 Long St. The budget will go the School Board for adoption on June 12.