Moorhead School Board approves budget for 2017-18
July 20, 2017
During the June 26 meeting, the Moorhead School Board approved the district’s annual operating plan, which includes the preliminary budget for the 2017-18 school year. General fund revenues are projected at $77.4 million with expenses projected to be $80.6 million.
The district’s revenues for 2017-18 will increase primarily because of a 2 percent increase to the general education aid formula and an estimated increase in student enrollment of more than 200 students, said Brandon Lunak, assistant superintendent of finance and operations.
Expenditures are increasing as the district continues to address the operating levy priorities and prepares to open two schools this fall. The primary reasons for the increase are the addition of approximately 18 full-time equivalent teaching and support staff positions; the addition of Vista Center for Education and the district operations center; and the opening of Dorothy Dodds Elementary School and Horizon Middle School West Campus. Additionally, two school buses will be purchased in 2017-18 to continue upgrading the district’s bus fleet.
In November 2016, district residents approved an operating levy renewal that will provide $223.66 per pupil in voter-approved funding each year for the next 10 years beginning with the 2018-19 school year.
Revenue from renewal of the operating levy will address these five priority areas identified by the School Board: support learning and operate our new and existing schools for our growing student enrollment; maintain average class sizes; provide a source of stable and predictable revenue to avoid reductions; maintain and replace technology equipment; and maintain access to education programs including world languages and early childhood.
Ninety-nine percent of Minnesota school districts use operating levy funding. Statewide the average operating levy authority is $1,187 per pupil. Moorhead Area Public Schools is below the state average at $947.66 per pupil — of which $223.66 is voter-approved and $724 is board approved. The operating levy generates approximately $1.5 million for the school district.
The result of the recommended budget is a fund balance decrease of $3.2 million for 2017-18. The fund balance is projected to be 18.79 percent of total expenditures. This falls below 25 percent, which is the target fund balance required in School Board policy.
The board was provided with projections for the next three years. Assuming no increases in revenue from the state, the district’s expenditures are projected to exceed revenue by approximately $1.5 million for fiscal year 2019, by $2.5 million for fiscal year 2020 and by $3.7 million for fiscal year 2021.
Lunak also reviewed the preliminary staffing plan, enrollment projections, and food service, community service, debt service, and building construction funds. A revised budget will be presented to the board in January 2018.
The food service fund is on budget for 2017-18. Elementary meal price will increase to $2.30 this year to be compliant with federal requirements. A separate fund was established to track revenues and expenditures for the construction work that received voter approval in November 2015. Total expenditures on the projects are at $74.8 million. Construction is underway on the new K-4 Dorothy Dodds Elementary School and the grades 5-6 Horizon Middle School West Campus. Remodeling is underway this summer at the three existing elementary schools.
Categorized under: School