Cliff Buchan
News Editor

A combination of measures, including teacher cuts, a major increase in student participation fees and a series of fund shifts, have been enacted to achieve needed budget cuts in ISD 831.

At its regular meeting last Thursday, the ISD 831 School Board voted 5-1 to approve a budget adjustment plan that drops $1.5 million from the general fund and utilizes a $500,000 drawdown from the general fund undesignated balance to reach a $2 million target adjustment.

The action followed a three-month public process of making budget adjustments to bring planned expenditures in line with revenues for the 2005-2006 school year.

The April 7 decision wasnít unanimous as board member Keith Dunham opposed plans that called for transfer of specific expenses from the general fund to the food service and community education funds.

The board action last week is the first of several budget decisions that await the school board.

In recommending approval of the reductions last week, Lynn Steenblock, superintendent of schools, said an expected gain in new state aid will allow the district to restore some of the $1.5 million in cuts. He said an amount of $500,000 or more could be expected, thanks to a plan being pushed by Gov. Pawlenty to increase school aid after two years of no increases.

The cuts

The cuts approved last week follow a general guideline outlined by Steenblock in January.

A sizeable share of the budget cuts will come at the expense of staff cuts, including 12.3 classroom teachers.

The elementary and secondary instruction cuts will both total $515,000, for more than two-thirds of the total cuts.

Seven elementary classroom teaching positions and a half-time music and half-time physical education position will be lost. The total savings was set at $316,000 for the elimination of teaching positions.

An additional $115,500 will be cut in form of seven media assistant positions. Supply budgets will decrease by $73,000.

At the secondary level, 5.3 classroom teaching positions will be cut for a total savings of $209,000. The high school will lose 2.3 teaching positions while the two junior high schools will share inthe loss of 3.0 teaching slots.

Some $112,000 will be saved by the reduction of 3.5 secondary clerical/media positions ($89,782) and one parking lot guard at the high school ($22,000). Supply budgets at the secondary level will be cut $61,200.

Custodial positions will also be cut to save an additional $148,750. A total of 4.25 custodial positions will be lost.

A half time coordinator position ($37,000) will be cut as part of district support budget reductions.

Other moves

As part of its general fund budget adjustment, other moves fall in the category of new fees or fund transfers.

A major hike in participation fees will take effect July 1. The district expects to generate $105,000 in new fee income for students in athletics and many co-curricular and music programs.

The districtís food service fund, which boasts more than a $1 million balance, will be charged for some expenses previously paid with general fund dollars.

The budget plan call for $10,500 in elementary noon duty aid salaries and $83,298 in secondary teacher lunch supervision salaries to be charged to the food service. Officials said district auditorís have OKíd the transfer.

The food service fund will also be charged with $45,000 in custodial salary costs and another $15,000 in custodial salary costs will be assessed to the community education fund. Both are district-wide expenses.

Another $78,000 will count as a district support budget reduction based on contract decisions by supervisors, principals, directors and the superintendent to freeze wages in the 2005-2006 school year.

Dunhamís view

Dunham could not agree to the methods outlined in the budget reduction model last week.

In his review of the plan, Dunham said he could find ìno good analogyî for the wage freeze costing and fund transfers as a true budget reduction. How could such a format be related to voters for this fallís operating levy request, Dunham asked?

ìHave we been charging kids too much?î Dunham asked of hot lunch charges and the healthy surplus in the food service fund. ìI am worried about the communication to the public.î

Under questioning from Dunham, Larry Martini, director of business affairs, said the $78,000 wage freeze was an estimated number based on expected roll-up costs for the four employee groups in 2005-2006.

Steenblock took exception with Dunhamís claim that the budget model did not follow the board directive. He said it was clear to him that the actions did what was intended by reducing general fund spending.

ìIt is a reduction in the general fund,î Steenblock said. ìYou can say what you like.î

Other points

The other five members last week did not support Dunhamís opinions.

Member Rob Rapheal said ìgood policyî can be hard for the public to understand, but that is not a reason to not move forward.

Member Karen Morehead said the district is facing a challenge in dealing with the cuts, some restorations later this spring and the need to fully explain to voters the need for additional operating levy dollars this November.

The same holds with a district decision to begin a study of transportation policies that could result in kids living within a mile of their school having to pay a fee to ride the bus or walk to school. The program, suggested during public budget review meetings last month, would not be considered until 2006, Steenblock said.

ìWhat are we saying when we say ëlet the kids walk,íî Morehead said.

Morehead and Rapheal were joined by President Bill Bresin and members Jody Krebs and Joe Grafft in voting for recommended reductions.

Member Dean Barr was absent.

Add backs

Steenblock said the positive direction from the legislature will likely mean the district can add back some of the cuts made on April 7.

But with the legislature far from a final decision on school funding, Steenblock recommended making the full cuts and deal with add backs in May or June when the financial picture is clear.

He will present a formal recommendation on restoration steps at the May 5 school board meeting. He suggested last week the district will plan on a conservative figure of $500,000 as the amount of new money Forest Lake can expect.

ìWe do believe we are going to get some revenue back,î he said. ìWe think we will get more (than $500,000).î

His plan calls for the $250,000 of budget add backs to elementary and secondary instruction. Funds would to to teaching positions and building supplies.

There was no mention of any other budget add backs to district support (administrative) or buildings and grounds, nor any revision to the new fees for athletics and co-curriculars.

Steenblock said he was encouraged by Pawlentyís desire to finally provide more funds for K-12 education. It was something positive, he said, after two years of no new state aid and the district forced to make $7 million in general fund cuts over the past six years.

ìIs it near enough? I believe no,î Steenblock said of the hoped-for new state aid.

The plan set in place last week will hold district general fund spending at $60.4 million, a figure that is some $28,000 lower than the districtís anticipated general fund revenue for 2005-2006.

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