Shawano School District administrators knew they were budgeting cautiously, but now they have third-party confirmation.
The Shawano School Board earlier this week reviewed a report by George Karling, superintendent of the Three Lakes School District and a school budget consultant, giving the district high marks for its budget management.
District officials hired Karling earlier this year to review the district’s budget for additional cost-saving opportunities.
The proposed budget for 2013-14, which the board is scheduled to finalize Oct. 28, keeps the property tax rate at $9.95 per $1,000 of equalized valuation, but last year’s budget required a 98-cent hike to break even.
Karling noted that the district’s expenditures are still 10 percent below the state average.
“He felt that the administrative team is doing a good job in managing district finances and that they should be commended,” said Gail Moesch, the district’s business manager. “This is evidenced by the fact we have not had to levy to our maximum limit for several years. The taxpayers should be happy with this.”
In a letter to the School Board, Karling questioned the district’s efforts to not levy to the maximum amount allowed by the state. The district’s levy for the 2013-14 school year is expected to be $12.9 million, about $954,000 below the limit.
“It is risky business not to levy to your limit, due to the fact that you never know if the Legislature is going to change the rules and set different limits based on the prior year’s levy,” Karling said.
In the review, Karling praised the district’s self-funded health and dental plans, noting that it has helped Shawano keep costs down. Premiums for employees are also affordable, Karling said.
Locking in the price on 80 percent of the district’s gas usage will help control costs, Karling pointed out, especially if the region has a severe winter.
Karling also liked the district’s range of instructional salaries, from a base of $33,561 to a maximum of $61,009. Karling cautioned, however, that keeping the salary range low for too long might keep the district from being competitive “in what is becoming a very tough market for hiring new teachers.”
Karling recommended that the district not tap its fund balance too often for major projects such as the recent expansion at Shawano Community High School, which cost about $900,000.
“It is never appropriate to utilize fund balance to offset your operating budget,” Karling said.
He said school districts should “maintain a healthy fund balance to keep from having to borrow money for cash flow during the school year.”
School Board member Al Heinz praised the report.
“The administration gets criticized for spending too much. I think it’s good for the public to know where we’re at,” Heinz said.
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