The Suring School Board might ask voters in April to OK funds to sustain a school system where budget deficits have reached half a million dollars.
Residents in August reviewed a $6.6 million budget for the 2014-15 school year that will tap the district’s $2.96 million reserve account to cover a $500,000 deficit. At the Oct. 8 School Board meeting, Superintendent Kelly Casper said the district will conduct a thorough study of the district’s financial future before approaching voters with a referendum proposal.
In partnership with Baird, the district’s financial consultant, administrators will develop a financial forecast projecting needs for the next decade and beyond.
“There’s a lot of questions, and before we can answer those questions, we really need that forecast,” Casper said.
School officials have provided Baird with financial statements, student enrollment data, enrollment projections and copies of the past five district budgets, along with other data.
If the School Board decides to place a referendum question or questions on the April 7 ballot, it must pass a resolution by Jan. 24.
Once the forecast is complete, the School Board will decide if referendum funding is needed, how much funding to request and other details — decisions expected to be reached by the end of the year, according to Casper.
In early 2015, school officials can present the proposal to voters in advance of the spring election.
“Marketing is going to be a key, obviously,” Casper said.
The district’s most recent referendum, an April 2012 request for $900,000 over three years, was overwhelming approved by voters. The funding provided funds to replace the school roof, a project completed in August 2012. The district has until July 2015 to spend the funds. According to district bookkeeper Amy Hermsen, the district has spent $$759,241 on the roof, leaving a balance of $140,759 available for roof-related expenses.
Deficit spending has become the norm for Suring, which proposed deficits of $100,000 to $300,000 in its budget for the past five years, to meet the escalating cost of education.
Declining enrollment has contributed to the district’s financial challenges. The official student count taken Sept. 17 showed a population of 393, a decline of 13 students from 2013-14.
Double-digit enrollment declines have occurred in 10 of the last 14 years, with declines of 30-40 students in four of those years.
Enrollment for the 2000-2001 school year was 655 students, while this year, enrollment fell below 400 for the first time.
The amount of state aid a district receives is determined by several factors, including student enrollment. State aid, which provides about 13 percent of the district’s revenue, was down about $40,000, to $253,000, for the 2014-15 school year, according to estimates presented at the annual meeting.
Known as a “property rich” school district, Suring relies more on local taxes than state revenue to fund its school. Taxpayer support accounts for 64 percent of the district’s revenue, and the School Board must abide by state regulations regarding the amount of money raised per pupil.
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