District 279 School Board Approves 2012 Budget

The Osseo School District 279 School Board approved a $200 million budget, which includes an $8 million operating deficit, at their June 21 meeting. 

The budget vote came at a time of uncertainty for the district as state funds are tied up by the possible government shutdown, but still included the $1 million allocation the board authorized in March to hire an additional 11.8 full-time teachers.

“This year we had a particular challenge since we’re still waiting for our legislature to pass a budget,” District 279 Assistant Superintendent Kim Riesgraf said.

The district projects a decrease in revenues of $2.2 million in 2012, a 1.1 percent drop from the 2011 budget.

This is partially due to a 152 student drop in district-wide attendance, according to Director of Business Services Kelly Benusa who presented the budget to the board.

Expenditures are expected to increase by about $7 million from 2011, a 3.6 percent rise, due to the end of federal stimulus money and rising medical insurance rates among other factors, Benusa said.

The $8 million deficit is projected to lower the unreserved fund balance, a measure of total assets versus liabilities, to about $32.6 million.

This figure is about 16 percent of the district’s expected 2012 expenditures, a number Benusa said is consistent with fiscal health.

Riesgraf stressed that budget deficits and surpluses are cyclical and anticipated.

“Our budget condition is better than some of our surrounding districts,” she said.

But similar deficits in coming years could push the district’s finances uncomfortably close to debt and result in budget reductions.

“This year we’re going to make it through okay,” School Board Chairman Dean Henke said at the meeting. “I see our challenge in 2013 and 2014.”

Most of the 11.8 full-time teachers the District 279 School Board allocated resources for in March have already been hired, Riesgraf said.

They are mostly elementary school teachers and are being deployed district-wide according to a formula designed to reduce class size.