School budget forecasts less state revenue

Superintendent Jim Ruse presented a budget that looked into the next seven years during the regular meeting of the Gallatin R-5 Board of Education held on March 16. The school will receive small amounts of new money during this period. During the first year Gallatin will have between $31,000 to $35,000 to operate the district of 610 students. The district needs between $90,000 to $110,000 new money a year to meet fixed costs of the school budget.

Other schools in the GRC conference below 350 students will receive as high as $210,000 new money each year with the small schools grant. While large schools do even better with their conditions in the new formula starting in 06-07. These and many other stories are surfacing around Missouri as schools look more closely toward administering the new formula. The Gallatin R-5 Board has been making changes to live within their means in the future.

The fate of the Gallatin R-5 School District, as well as many other schools in this position, has not been remedied thus far through state legislation. Money-saving efforts include cutting half-time positions in both buildings for the 06-07 school year.

“The school will continue to look at cuts to allow for the large mismatch developing in revenues and expenditures,” said Mr. Ruse. “The reductions may substantially change the look of our programs and offerings if we’re forced to operate with the current dispersal of money in Missouri.”

State legislators are also concerned about districts holding more balances than needed at the end of the year. But reducing the year-end balances, if it should come to that, presents the schools with yet another dilemma.

“It’s a two-edged sword,” said Mr. Ruse. “On the one hand, schools don’t have enough revenue, on the other hand, the state wants to trim our balances that do carry us during lean years.”

Nor are districts receiving any guidance yet as to what percentage should be in the balance other than one size does not fit all. However, the word from Jefferson City is 20% or 30% should be a target. Gallatin currently has a 38% balance, which Mr. Ruse said seems to be 8% over this new made up target.

“If we have to drop our percentage, we want to make sure the money goes to our kids and not somewhere else,” he said. “These are odd circumstances forcing odd corrections.”

He added that pre-paying of current bonds owed on the building addition in 1996 fits this problem perfectly.

“The school will apply the district’s money to the district’s debt in pre-payment, freeing the payment for other uses in the budget,” he explained. “The board is working on further plans along this same line if this situation arises this coming fiscal year. We certainly do not want to be put in a use or lose situation with tax dollars.”

The board also discussed legislation concerning tax credits for students. The plan to grant $40 million in tax credits to send about a tenth of urban public school students to private schools, has divided the Missouri Legislature. Mr. Ruse voiced opposition to the plan, saying it would put an additional drain on the state budget.

During executive session the board further discussed budget cuts for the future. The board reviewed staff contracts. Funding decisions will be made at the April 11 meeting and the board will offer contracts and determine the salary for the staff at that time. Afterwards, the old board will be dissolved and the new board will be reorganized.

Mr. Ruse reported that he is presently brokering the school’s radio frequencies. The school received $80,000 about 12 years ago when it sold the frequencies. However, the company that bought them has since gone bankrupt, and the radio frequencies are on the market for lease again.

During old business, the board reviewed the district wellness police due in August. The school is taking a look at the amount of sugar students are consuming in the cafeteria and in vending machines.

Bills in the amount of $232,646 were approved for payment.

All board members were present for the March 16 meeting.