By Helen A. Granger, staff writer
Corunna Public Schools Board of Education approved its final 2014-2015 general fund budget and its projected 2015-2016 general fund budget at the June 15 board meeting. Supt. Dave Moore said the district has been tightening its belt. “I feel we are very close to having a balanced budget. It’s unfortunate we had to make reductions to our staff,” he said after the meeting.
The final 2014-2015 revenues stand at $17,856,518 with expenditures at $18,221,825, thus an estimated ending fund balance of $1,367,724 – a deficit of $365,307.
The estimated/projected 2015-2016 revenues are at: $17,598,576 with estimated expenditures of $17,887,181 with an estimated fund balance of $21,079,119 – an expected deficit of $288,605.
The total authorized levy for 2015-2016 the 2015-2026 general fund (with Headlee Limitations/Adjustment) includes 18.0000 mills for Non-Homestead Operating and 2.25 mills for Debt Retirement for a total of 20.25 total mills ($20.25 per thousand dollars). That 2.25 mills is a decrease of .06 mill from the 2014-2015 budget of 2.31 mills.
“The 2015-2016 budget changes mean the largest impact to the preliminary 2015-2016 budget is the expected (estimated) change in student count,” Moore said. He explained the district expects a decrease of 91 students in 2015-2016 based on differences experienced in the past between student Kindergarten enrollment and the number of graduating seniors. For example the 2014-2015 blended count enrollment was 1,947 and the estimated 2015-2016 blended count enrollment is estimated at 1,874.
Despite the per pupil allowance increasing by $140 per pupil in the Foundation Allowance to $7,391 per pupil, the loss of $40 per pupil of performance funding and a $50 loss of best performance funding (a total of $90) reduces that $140 increase to a net increase of $50 per pupil.
Adjustments will have to be made, Moore explained. Those adjustments will result in some to-be-announced layoffs (4.5 positions) and some job reassignments and transfers. Also agreed upon for 2015-2016 budgeting purposes, the Corunna Public Schools will borrow $2,535,000 against future State Aid to meet cash flow requirements. This is less than the $2,760,000 borrowed for 2014-2015. The yearly borrowing is necessary to bridge the gap created between the start of the actual school year expenses and when state funding is received sometime in late September and sometimes into October explained Linda DeCamp at the June 15 meeting. DeCamp is the district’s chief financial officer and business manager.
Of note, the retirement rate charged to the district remains stable at 25.78 percent and the State of Michigan will continue to provide additional funds to offset the actual cost of 36.31 percent. For the 2015-2016 preliminary budget it is adopted that the district will continue to use an 80 percent employer and a 20 percent employee cost sharing for health care premiums.