Despite the recent approval of an 18-mill non-homestead millage and approximately $2 million in expenditure cuts, Clarkston School officials expect to run an additional $5.5 million deficit for 2006-07.
The Clarkston School Board voted 6-0 to approve the budget for fiscal year 2006-07 on June 26 after holding a public hearing. Treasurer Ron Sullivan was not present at the meeting.
According to estimates presented to the board by Bruce Beamer, executive director of business services, the district is already expected to post a $4.8 million deficit for fiscal year 2005-06. The deficit is offset by the district’s fund equity, which will decrease to approximately $11.7 million from $16.5 million.
Since 2001, the district’s fund equity rose steadily from approximately $3 million to more than $16 million in 2005. This money is kept to offset deficit spending in future budgets.
The district is estimated to bring in approximately $58.5 million in total general fund revenue over the next year, 84.6 percent of which will come from state funding. The non-homestead millage rate approved by voters in May will account for approximately $8 million, roughly 15 percent of the general fund revenue and accounts for nearly all the district’s local funding. Non-homestead funding is estimated to increase $618,663 over the previous year as a result of rising business property values.
General fund expenditures for 2006-07 are estimated to reach $61.1 million, less than one percent higher than the previous fiscal year despite already approved cuts. Of those costs, $35.8 million (approximately 59 percent) are dedicated to the instruction costs of teachers? salaries. $23.9 million (approximately 39 percent ) are dedicated for support services. The remaining two percent of expenditures are made of miscellaneous expenses and fund transfers.
The $2 million in cuts ? including classroom sizeincreases and eliminating General Fund money for extra-curricular clubs and intramural ? came in April, before the board approved a two percent raise for central office administrators and nonunion employees in June. By contract, teachers and support staff employees are slated to receive two percent and one-half percent of scale raises during the next fiscal year. The total employee count for the district equals 1057.87 full time employees.
According to Beamer’s report, in order to help reduce or eliminate the deficit, the board will keep close monitoring on staff size and strive to spend only 95.1 percent of their budgeted expenditures. During discussion, Vice President Stephen Hyer indicated on average the district spends approximately 98 percent of budgeted expenditures and going lower was unlikely.