Schools all dip into equity to balance budgets

By Jessica Fish, Joyce Bonesteel
Posted Thursday, June 26, 2008

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LAPEER COUNTY — A tough economy has forced school districts across the county to dip into their fund balance — as much as $1 million in the Lapeer Community Schools — to cover estimated expenses for the upcoming fiscal year.

With enrollments on the decline, schools are worrying more about when to use — and when to save — that rainy day funding. Adding to the uncertainty is the state’s fiscal woes. Once again, schools do not know how much funding they will get for each student, currently set for most Lapeer County schools at about $7,200.

Imlay City’s school district budget has been set for just over $20 million in 2008-09. That’s $100,000 more than the current budget that ends June 30, said Amy Swantek, director of business services. The school board is taking $950,000 out of the fund balance, due in part to an expected enrollment decline.

“And we don’t know how much money we’re getting from the state,” Swantek said.

The withdrawal will leave the fund balance at 11 percent of the district’s annual spending. Swantek said the fund equity number represented 16 percent for this school year.

The Lapeer school board has approved a $54.7 million general fund budget for the 2008-09 school year. It’s $2.4 million less than the budget that ends June 30. The board approved using $1 million from the fund balance. As a result, the Lapeer fund balance will equal 13 percent of the budget compared to 15 percent last time around.

In North Branch Monday the board stamped its seal of approval on a $20.4 million budget for the upcoming school year. Expenses will exceed revenues by $497,281, so the difference is coming out of the fund balance. That drops the balance to 10.17 percent of expenses. Adjustments will be made as the new school year unfolds. The board had to work with the numbers available and was required by law to approve the 2008-09 budget by June 30, the last day of the fiscal year.

The Almont school board has adopted a $14.3 million budget, based on enrollment estimates and numbers available to date. Estimated expenses for the year are just under $14.5 million. To cover the extra expense, the Almont board plans to take $286,000 from the fund balance, which would be reduced from its current 15 percent to 12 percent of the total operating budget.

Dryden Community Schools approved a budget of just over $5.7 million. Revenues are expected to be $5.6 million. The school board agreed to transfer $114,962 out of the general fund to cover the remainder, leaving a fund balance of 8.3 percent, down from the 9.9 percent fund balance of last year. — Joyce Bonesteel and Jessica Fish