willmar public schools – isd 347 2016-2017 budget adjustments
DESCRIPTION
For the year, the district continues to deficit spend despite $1M in budget reductions. Our Present StatusTRANSCRIPT
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Willmar Public Schools – ISD 347
2016-2017 Budget Adjustments
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Deficit Spending We spend more than we bring in.
Unassigned Fund Balance Similar to a savings account, the unassigned fund balance
is used to offset unexpected changes in revenues or expenses. District policy sets a minimum unassigned fund balance of 6% of general fund expenditures. (Policy 714)
Balanced Budget Your income equals your expenditures.
Definitions
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For the 2015-2016 year, the district continues to deficit spend despite $1M in budget reductions.
Our Present Status
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In 2014-2015, the fund balance ended higher than predicted.
Legislature added an additional $30 per pupil more than estimated during budgeting.
Enrollment is stable and slightly higher than projected.
Positives
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Even with these positives, we continue to spend more than we bring in…
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The biggest part of the district’s budget is salaries and benefits (positions).
• Unexpected staff turnover• Long-term absences requiring substitutes
• Contract negotiations
By 2017-2018 we will have a new elementary school, an addition to the middle school, and an addition to the
senior high school.
Challenges
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For 2016-2017 the district is projected to deficit spend $1.7M bringing the fund balance
down to 6.35% ($3.3M).
If the district balances the budget by reducing 2016-2017 expenditures $1.7M, the fund balance would
be at 9.96% ($4.9M).
What Does This Mean?
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If the district balances the budget for 2016-2017 by reducing $1.7M, the district will be in a better fiscal
position for 2017-2018 when costs increase to support operations and new facilities.