Oxford Area Community School officials are preparing to tighten their belts for a projected $1.5 million shortfall in the 2003-2004 school year budget.
According to Assistant Superintendent Ron Franey, the district could lose around $444,672 from next year’s revenues largely because of state budget cuts. This would take Oxford Schools from a 2002-2003 budget of $32,324,622 down to only $31,879,950.
“The state is cutting back highly on categorical funding this next year,” Franey told board members at their Jan. 28 meeting.
Some of the categorical spending being hit the hardest includes programs for “at risk” students and adult education. District administrators are looking to possibly receive about $24,382,229 from the state, which is down by $696,247 from this year.
In addition, the district will be losing some grants, such as the federal Carl Perkins Grant that equals around $50,000, and award money, such as the Golden Apple at Leonard.
“Those were one time things,” Franey explained, “or they were there to set something up, so the start up money is gone, but you may still have a teacher or para-pro to pay for.”
In funding other than governmental, the district is predicting to receive around $2,049,053, down from this budget year by $67,425.
“None of these cuts are final,” Franey warned board members. “Everything can still change.”
Including the schools expenditures which are continually rising. Franey told board members he expects to have around $33,392,974 in expenditures for 2003-2004. This is up from 2002-2003 by about $1,300,138.
The biggest portion of the district’s spending goes to employee salaries. “Salaries make up most of our budget, as we always say year after year,” said Franey.
The district is looking at paying around $19,911,532 for staff next year, an increase of almost $500,000.
“I figured this number by taking all of the employees up one step on the pay scale,” Franey told the board. “Now there are the hourly employees who change by contract agreement or the administration who have their own steps but not necessarily each year.”
However, like all of the projected numbers, these estimates could change. For example, a teacher who receives their master’s degree this summer would go to a different step on the pay schedule than the one used in the projected budget. This situation would increase the expenditure amount.
Franey added that the cost for an experienced teacher, someone with at least 10 years experience in the district and a master’s degree, could be as high as $100,000 when taking into account salary and benefits. This is compared to a new, first year teacher with a bachelor’s degree who would only cost around $55,000. “We have several teachers with several years experience in the district,” stated Franey.
Other expenditures hitting the district hard are the rising cost of health insurance and retirement benefits for employees. Franey told district officials the increase in insurance alone would be around 18 percent.
In the end, Oxford Community Schools is projecting to have only $31,879,950 to pay $33,392,974 in bills.
“I can’t even say the $1.5 million is the final number,” Franey told the school board. “Especially with the financial situation that state is in.”
Right now district officials are preparing to do once again what they did just this past school year – tighten up and trim the budget.
Franey stated that he is currently holding meetings at each school building in order to explain the situation to staff. He is also holding informational meetings with district unions and various specialty groups such as the budget committee.
“The purpose of these meetings is just to identify any options we do have at this time,” he said. “We need to find what is necessary and what is not.”
Local school districts should be receiving some solid numbers on retirement costs for staff around March, and the insurance increase will be finalized by May.
The school board will be reviewing and accepting a final budget at the end of June.