Schools budget reflects declining enrollment

Published 9:00 am Saturday, July 15, 2006

With their eyes on declining enrollment, South Whidbey school district officials have developed a conservative budget for the 2006-07 school year.

On Wednesday, the Board of Education got a look at the preliminary budget numbers for next year.

Based on a projected student enrollment of 1,850 next year’s revenues are expected to be $17.3 million; expenditures are estimated at $17.2 million.

The new budget has been trimmed to reflect fewer students and rising employee costs, though dollars have also been added to the district’s rainy day account.

“The philosophy of this year’s budget is to be conservative,” Dan Poolman, business manager for the school district, told board members.

In spite of the anticipated decrease in enrollment, the district is having to deal with higher employment costs — including a Legislature-mandated 3.3 percent cost-of-living adjustment, increased retirement costs and higher health care payments.

“We planned for a $900,000 increase in salary and benefits. The biggest increase was in our share of retirement benefits, about $200,000, which we have no control over. The state just sends us a bill,” Poolman said.

Eighty percent of the district’s budget goes to salaries and benefits. The state funds 80 percent of teachers’ salaries; the rest is covered by levy dollars. Teachers’ salaries and benefits total $9.4 million.

“The expenditure budget is estimated higher; the revenue is lower. That will leave us a little wiggle room for the unexpected,” Poolman said.

A budget team that included administrators, supervisors and former Superintendent Bob Brown fine-tuned the budget for next year. And the budget workshop meeting was Fred McCarthy’s first since he took over as the new superintendent on July 5.

South Whidbey, like school districts nationwide, are feeling the pinch of reduced federal education dollars, in spite of increased regulations mandated by the federal No Child Left Behind Act.

“Federal education dollars across the board are being reduced anywhere from two to 50 percent,” Poolman said.

South Whidbey is receiving $64,500 less from the federal government this year.

In spite of some serious number crunching by school administrators, budget writers were still able to increase the fund balance to $650,000.

The fund balance, or reserve, is projected to hit $650,000 in August 2006. Next year the district is projecting a fund balance of $725,000.

Surprisingly, high fuel costs did not impact the district as much as other organizations that are dependent on transportation.

“The district cut one bus route last fall, or our fuel costs would have been much higher,” Poolman said.

An internal reserve budget is also included in the new budget that has $178,000 for unanticipated costs in transportation, food service and health insurance.

Fewer students in coming years means the district had little choice but to tighten its belt.

The district reached a peak enrollment of 2,300 students in 1999-00 school year. District officials are basing next year’s budget 2006-07 on 1,850 students. Enrollment is expected to drop further until it levels off at 1,600 students by the 2009-10 school year.

McCarthy suggested having an exit interview with kids when they decide to leave the district to determine why they are leaving and where they are going.

Last year’s budget was $16.6 million, based on an enrollment of 1,873 students, and the equivalent of 13 fewer teachers and 10 fewer classified employees.

This year teaching staff was not cut, but classified staff was reduced, including a custodian, four para-educators and a secretarial position. Through resignations and retirements, administrators avoided laying off teachers.

The public will have the opportunity to add their two cents to the proposed budget during the July 26 school board meeting at the Intermediate School.

Gayle Saran can be reached at 221-5300 or gsaran@southwhidbeyrecord.com.