Commentary; Posted: 6/19/02

New school budget is a positive

Cliff Buchan

There was a time not too many months ago when the ISD 831 budget and financial picture was a not-so-pretty picture. But those views are now taking new turns. A new school-year budget for 2002-2003 approved by the school board on Monday night is pointing the district in the right direction, financially.

While the district remains in statutory operating debt, positive steps are being taken to move the district away from the official state designation and back to a positive position for its unreserved fund balance. That goal should be achieved within four years under the state-approved plan that is now in place here.

The district is moving cautiously and conservatively in building its budget for the new fiscal year and that, too, is a smart move. We believe the district will show an increase in actual student enrollment in the fall and that will net higher state aid for the district.

Larry Martini, the director of business affairs for the district, has led the design process of the new budget based on conservative estimates for enrollment. We agree with Martini that the district is being prudent in not forecasting estimates that could fall short of their goals.

If that should happen, the district would again be in a position of seeing a financial downturn.

We shudder to image what the discussions this spring would have been like had last Novemberís excess operating levy failed. If voters had not shown faith in their school system, we would have been looking at a wasteland today. The budget cuts that would have followed a defeat at the ballot box would have been devastating to say the least.

Fortunately, the voters by a respectable margin spoke faith in the system. With the $650 per pupil levy on the books, our district is now able to take on the debt problem with the attention it deserves. Some $1.2 million in the negative category will be reduced in the year ahead.

And just as important, the school board is able to move forward with plans to restore programs and staff that were part of budget cuts in the 2001-2002 school year. A modest proposal for add backs has been crafted as the board is working diligently to keep that promise made to voters.

The district is also wise in keeping options open to make budget adjustments during the year ahead. Such adjustments will likely come in November and March when better data is available to the district.

Our school board will face a challenging summer and fall, however. Class size questions are already coming to the surface. There will be requests from the public for staff at various levels to reduce class size.

The school board must again show its prudence by acting wisely in dealing with these requests. It will also be a good test for the administration. The final recommendations on new hires will fall to the administration.

Dealing with such requests will require keen wisdom by our school leaders and planners. As the fall opening of school draws near, the board must act wisely in making additions that can be justified on enrollment gains and more state aid.

Without such wisdom, the board will be climbing a slippery slope. A serious slip could significantly erode the positive steps that we are seeing in the financial health of ISD 831. And it is the financial health that will play a significant role in future budgets.

Unwise spending moves today could have the result of triggering major spending cuts tomorrow. For the school officials who have been there and done that, such a scenario is one to avoid at all costs.

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