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Revenue for the new year is estimated at $44,191,956.58. Local property taxes is again the biggest source of income. Seventy percent of the total revenue comes from local sources. State funding only makes up 18 percent of revenue.
The board approved a preliminary budget last week at its regular meeting. Tuesday's meeting was held to close out the books for 2008-09 and adopt the new spending plan. As a result some of the ending balances have changed, officials noted.
One of those changes is with deficit spending which is now projected at $1.7 million in operations, down from an estimated $2.4 million reported last week. The district now projects a 23.4 percent reserve balance, up from 19.6 percent.
Superintendent Dr. Lori VanLeer said while the new numbers are a big improvement and the reserve balance is at an adequate level, major concerns still exist regarding the district's ability to maintain this level in preparation of the 2010-11 budget as cash flow issues may arise due to declining revenues.
"A great deal of sacrifice has been necessary this year in order to end the fiscal year with reserve balances that help our cause and lead us into the new fiscal year," she noted.
VanLeer pointed out that the new budget is less 9.5 teachers, does not include a pay raise for staff and reflects reductions made in virtually every program and at every building this past school year.
The district also expects to save more than $500,000 over the course of its plan year for health insurance because it has left a group insurance trust and went out to bid.
Another cost-saving measure was an earlier deadline on purchases for the 2008-09 school year, resulting in some budget line items not being spent down and carried over to the new budget.
"But that's not something we can sustain over time," VanLeer said. "We worked hard to get us in a comfortable spot for this coming year, but I don't want you to have any false hope. We still have challenges ahead."
Revenues are not keeping pace with the increase in expenditures, the superintendent said, and the district can no longer assume that assessed valuation will grow and compensate for those increases.
"We also must assume continued decreases in state aid," she said.
VanLeer said the district will continue to monitor expenditures very closely in the coming year and develop strategies to overcome shortfalls in revenues in future years.
School board members were given an analysis of fund balances extending out to fiscal year 2014 and balances are projected to drop significantly if revenues remains fairly static and expenditures continue to climb.
"Strategizing and engaging the public about our situation will be very important in the coming year," VanLeer said. "There is an urgency here."
"My absolute goal is to make sure the Washington School District is an outstanding district where parents can bank on receiving high quality education for their children," VanLeer told The Missourian Tuesday after the meeting.
"But we have serious concerns here about the condition of our budget going forward with a failing economy," she said. "We will do all we can to ensure our kids don't suffer as a result."
Here is a breakdown of projected expenditures and revenues for the 2009-10 school year:
Expenditures
General Fund - $15,067,030.47;
Teachers - $23,719,144;
Capital Projects - $972,417;
Lease Purchase - $2,738,218;
Food Services - $1,606,873.36;
Student Activities - $803,449; and
Debt Service - $1,462,660.
Revenue
Local - $31,152,570.94;
County - $1,319,439.24;
State - $7,943,023.40;
Federal - $2,457,295; and
Other - $1,319,628.
The new budget includes a .24 cent debt service levy, up from this past year.
School officials said the increase is necessary because the current debt service levy of .1465 cent does not provide the district with the ability to make principal and interest payments associated with bonded debt as required by law in 2009-10, nor does it allow the district to reach a reasonable reserve.
In August, the board will hold its annual tax rate hearing.
