Managing editor
The picture is bleak. Enrollment continues to decrease for USD 408 and the base amount of state aid per pupil continues to decrease — not a good combination, Superintendent Lee Leiker said Friday to Marion Chamber of Commerce members.
The reason for the shortfall from the state is quite simple — the state spent more money than it brought in.
Enrollment numbers are decreasing with population totals.
“In five to six years, we could lose 100 students if something doesn’t change,” Leiker said.
Another fly in the ointment is the budget woes facing Marion County Special Education Cooperative of which the Marion schools and the four other school districts in the county are members. The cooperative is currently operating in the red and may see a shortage of $250,000 or more by the end of the fiscal year in June.
“The five participating districts are responsible for keeping the co-op in the black,” Leiker said.
The Marion schools share is 30 percent.
It’s apparent that the special education cooperative will end the year in the red, which the school districts will have to make up, adding more budgetary concerns for the school districts.
Leiker made it clear that the district’s budgetary woes are not due to the construction of the new buildings.
“Nobody’s taxes increased to pay for these new buildings,” he said, indicating that the district would still have budget concerns even without the bond and interest payments for the performing arts center and sports and aquatic center.
What happened?
Funding USD 408 received from the state in 2008-09 and this year was not much less than in 2005-06 at $4,257 per pupil. However, the difference is the school district had budgeted for more than that, based on promises made by state legislators.
The base state aid per pupil in 2005-06 was $4,257, which the district received. The amount increased each year — $4,316 in 2006-07; $4,374, 2007-08; and $4,433, 2008-09. Last year, the district only received $4,218 per pupil, which resulted in a $210,000 loss to the district.
“For three years in a row, the state spent more than it brought in and the economy went down,” Leiker said, making for a disastrous combination.
The Marion school district is currently using funds from its reserves.
“We’re OK but we can’t do this forever,” Leiker said.
Enrollment
Full-time equivalent totals reflect students enrolled in the school district. School districts can also add to that number by counting students in special education and at-risk programs and vocational education programs. These numbers, in addition to other factors, can help add to the weighted count.
There was a slight increase in the 2008-09 school year with 598 students and 1,134.8 students for which the school district actually received funding.
Enrollment this year dropped again by nearly 20 students. The weighted enrollment was 1,130 students.
School officials expect enrollment to drop even more next year — from 579 to 544. The weighted enrollment also will decline dramatically to 1,100.
How do school officials know this? The numbers are based on pre-school enrollment, Leiker said.
Declining enrollment numbers could continue in 2011 and 2012 at 529 and 522, respectively.
“We’re graduating big classes which are contributing to the drop in enrollment,” Leiker said.
The school district has two types of funds — a general fund and a supplemental general fund.
When the school district receives payments from the state — the annual amount allotted by the state per pupil multiplied with the weighted enrollment number — they are deposited in the district’s general fund. Some funds are then transferred to the supplemental fund for bond and interest payments.
In 2005-06, the district had nearly $4.7 million in the general fund and $900,000 in the supplemental fund. The following year, more money was left in the general fund, $4.8 million, and less in the supplemental account, $630,000.
The Marion district had a sizeable amount in its general fund in 2007-08 at more than $4.9 million and $900,000 again in the supplemental fund.
There was nearly $4.8 million in the general fund in 2008-09 and $900,000 in the supplemental fund.
This year, the general fund had $4.5 million to begin the year and $1 million in the supplemental fund.
“There has been a $250,000 decline in funds,” Leiker said. “It (the budget) is becoming a challenge.”
Future budget funds are a major concern, as they continue to decrease because of state aid and a declining enrollment.
“We’re looking at the options and none of them are good,” Leiker said. “We are a very efficient district. We capitalize on every dollar. We’re doing everything we can to stretch our money.”
The school district has already made some budget cuts by laying off an aide at Marion Elementary School, effective Jan. 31.
More cuts may be in the works. The district is also leaving positions open and asking employees to fill in where needed.
So, what can the community do?
“Growth is important,” Leiker said.