FeedsDistrict approves new budget
Wayne-Westland Board of Education members unanimously approved a balanced budget on Monday that taps into district reserves to cover shortfalls.
The 2007/2008 budget has been a major concern for the district since February. According to Gary Martin, deputy superintendent of administrative and business services for the district, the economic uncertainty forced some difficult choices.
“We’re running a $2 million deficit level in 06/07,” he said. “According to our projections, our revenues are going to stay relatively flat (at about $117.4 million).”
Expenses, however, are expected to continue to grow as contractual salary increases are implemented, health care costs grow by about 6 percent, and costs increase on basic supplies such as utilities and gasoline, Martin said. They are expected to reach about $123 million.
Since state law requires a balanced budget be approved by July 1, the district had to decide where to find the money to make up what is expected to be a $5.5 million deficit. Although the possibility of cutting programs or services was discussed, Martin said that district officials ultimately decided to dip into the fund balance instead.
“We’re consciously keeping programs in place,” said Martin. “We’ll continue to keep the programs in place as long as we can afford it.”
District personnel and board members had built up the fund balance during the past several years to give the district more of a financial cushion if unexpected expenses or cash to tide the district over between funding payment was needed, he said.
“It will take us down to a $9.2 million fund balance,” he said.
At that level, the fund balance would be at its lowest level since 1996 and it could cover about 7.5 percent of district expenditures, Martin said. The district usually tries to keep it to about 15-20 percent.
Although efforts by the state Legislature managed to eliminate the threat of a prorated cut for the current fiscal year, Wayne-Westland School Super-intendent Gregory Baracy said that the ‘solution’ simply moved the problem forward another year.
“We’re hoping our legislators will put their bickering aside and do something to solve this structural budget problem that has existed for the past several years,” said Baracy.
After a question from school board trustee Ed Turner about the likelihood of a $100 per pupil funding increase the budget includes, Baracy said that the district is “optimistic” about the possibility of the increase after speaking with legislators. However, he said that if the “structural deficit” at the state level is not taken care of by next year the district will be forced to do whatever it takes to cut expenses.
“We’ll be doing what other districts around us are doing and that’s cutting programs and looking at significant cost containment measures,” said Baracy.
Complete copies of the budget are available on-line at www.wwcsd.net and from the district business office.
For a more information on how to receive a copy, call (734) 419-2042.
