Statewide Adverstising

State to hold back $2.1 million from Sibley East in 2010-2011

July 1st, 2010

Major financial concerns are part of the proposed 2010-2011 Sibley East School District budget.

The proposed 2010-2011 budget, approved by the Sibley East Board of Education last week, has expenditures exceeding revenue by $341,298. It is estimated the general fund unreserved balance will drop from $1,864,049 to $1,522,751.

According to Superintendent Stephen Jones, the proposed fiscal year 2011 budget took into consideration a conservative enrollment projection, contract settlements, actual increases in insurance premiums, and no additional dollars in the state general education formula. Budget saving adjustments estimated in the amount of $286,761 were made and are reflected in the fiscal year 2011 budget projects.

Major financial concerns, as noted by Jones, include the disparity between state dollars and ARRA (American Recovery and Reinvestment Act) dollars, the need to borrow through aid anticipation certificates, the 70/30 tax shift, and the continue delays/reductions to school districts.

Last year, with the state’s 73/27 tax shift, Sibley East only received $5.1 million of the $7 million due to the district to help rectify the state’s cash flow. Jones said that the state will hold back more than $2.1 million from Sibley East this year.

Jones also commented that the many changes to the school district’s food service department this year have increased both expenditures and revenues. He is waiting for the end-of-the-year state and federal payments to provide firm financial numbers. Final food service financial data is expected to be available in July, he said.

Jones plans to present a revised budget for the 2010-2011 school year in October or November.

Jones also presented a revised 2009-2010 budget.

The current revised budget has expenditures exceeding revenue by $71,087. This is less than the adopted budget, which predicted expenditures exceeding revenue by $183,528.

The major difference in the two budgets is more revenue than projected in the general fund, food service, and study activity fund. General fund and food service expenditures were higher than projected, but community service and scholarship expenditures were under budget.

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