SHERBURNE – With recent years of budget cuts and constraints that have left a bad taste in the mouths of board members at the Sherburne-Earlville School District, preliminary figures of the 2013-2014 budget were met with vigilance at a board meeting held Monday.
Next year’s estimated budget currently stands at $29.76 million, with a figured tax levy increase of 1.9 percent.
“We really haven’t decided if that’s where we want to be, but we need to decide that soon,” said Assistant Superintendent Todd Griffin, paying notice to the approaching budget deadline for the upcoming year.
There are certain challenges to consider for the coming school year, Griffin added - primarily the rising pension and health care costs that have plagued school districts and municipalities statewide.
The upcoming budget includes an 8 percent increase in regular health insurance, as well as an 8 percent increase in retiree health insurance (a combined cost of $284,146). In addition, the Employee Retirement System (ERS) calls for a 21.5 percent increase ($152,897) and the Teacher’s Retirement System (TRS) is looking at an increase of 16.25 percent ($200,932).
In all, the district is facing additional costs of $637,975 from those four budget line items alone, Griffin said. Adding to concern, school officials expect a decrease in state aid - approximately $934,009 less than what they received last year.
Pension and healthcare are expected to climb well over the next three years. The district anticipates a total $5,519,500 to be spent on pension and healthcare expenses this year, which jumps to an estimated $6,780,471 by the 2015-2016 school year - nearly 25 percent of the school’s budget, Griffin noted.
“It’s something to be concerned with ... this is one of those things where the light at the end of the tunnel is a train,” he added.
Administrators also face the possibility of a shake-up in grant funding guidelines established by the state.
“If they changed the (grant) guidelines, it would be an issue for us,” explained Superintendent Gayle Hellert, as the district currently utilizes some of that funding to pay teacher salaries.
But there are also standing proposals yet to be resolved by the board, and decisions made will certainly have an impact on the pending budget, said Griffin. The district is looking to invest in new school buses for the 2013-2014 school year and is presently exploring the possibility of leasing new buses rather than purchasing them. Also up in the air is the possible purchase of iPads for student use and the hiring of a new school administrator to fill the position of assistant principal at the middle school level.
The political issue of sequestration is grounds for concern too, Griffin added.
“It looks like it won’t have a huge impact on us,” he said, although it could lead to additional funding cuts for next year. Final numbers will not be available until those decisions are made at the federal level.
What’s more, the district has seen a trend in falling enrollment in recent years. Enrollment for 2012-2013 was 1,357; down from a total 1,398 last year, and 1,414 in 2010-2011. In all, student enrollment has dropped by more than 500 students over the last 15 years.