Cliff Buchan
News Editor

Slashing budgets is one way to bring expenditures in line with revenues. But officials in ISD 831 said they would welcome ideas on ways to save money and add new income streams.

Itís all part of the budget cutting process and the districtís plan to trim $2 million from the 2005-2006 budget. The proposed cut comes in the wake of a $2 million general fund cut that took place in the current school year.

The school board got its first look Jan. 12 at a draft proposal for budget modifications. The board reviewed a proposed plan that would cut spending by $1.5 million and draw-down $500,000 from the undesignated fund balance to reach the $2 million threshold.

Board took the draft plan under advisement. More discussion took place Wednesday, Jan. 19 during a work meeting.

But last weekís meeting also made it clear the board is willing utilize new revenue sources if feasible and save operational dollars wherever possible.

ìWe will continue to be as efficient as we can,î said Larry Martini, director of business, speaking to the overall district operation.

How to get ahead

During last weekís work session, the board engaged in philosophical sessions that included school closings, outsourcing and insourcing services and selling commercial advertising to provide new revenue.

The school closing topic is one on the board agenda for this winter. The board in December directed the administration to prepare a report on the feasibility of closing a school to help with the budget plight.

That report is expected to reach the board next month.

School officials said last week there would be direct staff and building expenses that would be saved but no numbers have been attached to those areas yet. Any building closed could be available for rent or sale, officials said.

While the school closing is still a discussion topic, board members agreed a mid-1990s report on outsourcing the transportation department would be resubmitted for board review. It would give board members a short course on transportation outsourcing.

Outsourcing was raised as a topic by member Keith Dunham. Member Jody Krebs said the transportation was an area to explore.

That did not sit well with member Joe Grafft. He said schools that switch to a non-district owned bus company initially see savings. Based on his experience, he said he could not support a contract service for the districtís buses.

ìIím serious about that,î he said. ìI wouldnít look at it at all.î

Member Dean Barr said districts switching to an outside transportation company were doing so for the short-term savings and to eliminate any district headaches tied to management of a bus system.

Krebs said she felt the topic was at minimum worth a look to see if the district would benefit.

While most of the discussion was aimed at outsourcing, member Rob Rapheal said the district would be wise to look at in-sourcing work that now goes to outside sources. Keeping such work in the hands of district employees may work to the positive and save dollars, he added.

Advertising

Board members learned last week the district has asked Joel Olson, high school activities director, to study the possibility of selling commercial advertising to help raise funds.

The district allows some advertising now in select locations, such as the school-owned ice arena, and is willing to explore other areas.

Grafft said athletics advertising is a natural market that could be productive in terms of revenue. ìI donít have a problem with that,î Grafft said.

Selling billboard space to be placed on athletic field fences could be a way to gain revenue, Superintendent Lynn Steen-block said. ìThere are plenty of vendors willing to do it,î he said.

Rapheal said he could not support the idea if the advertising was directed at students.

Steenblock said recent state legislation has liberalized rules on advertising that now make it easier for schools to sell raffle tickets to raise funds.

ìYou can sell space on your buses,î Steenblock added.

With 100 72-passenger buses and another 20 small special education buses, the district has plenty of sides to sell.

ìWe might have to go to extreme measures,î Grafft said.

Grafftís rationale was simple: If putting advertising on a bus could help save the job of a teacher, heíd be willing to do it, he said.

Steenblock and Martini said the district is exploring other ways to save money.

The superintendent said joint ventures with cities, township and counties could provide efficiencies in a number of areas. Staffing needs and technology are two areas, he said.

Martini said the district would continue to seek ways to save utility costs. Such steps as employee education programs to conserve electricity could help in small but important ways, he said.

He said the districtís lighting retrofit program that is now underway will show a positive cash savings to the district of $70,000 a year within four years.

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