'Better Year Than Budgeted' For Osseo District's Finances

Multimillion dollar budget deficits projected for the next two fiscal years in the Osseo School District might be getting a bit of a help after prelimary numbers show a budget surplus in the district for the 2011 fiscal year.

A yearly preliminary audit of the ’s financial situation at the Oct. 4 meeting brought positive news to the District 279 School Board for the fiscal year ending June 30, 2011.

“Overall, we had a better year than budgeted, from a financial standpoint, due to the assistance of staff and administration. We were close to budget in most areas,” Director of Business Services Kelly Benusa said in a memo to the school board and district leaders.

In reviewing the district's general/transportation operating fund at the Oct. 4 meeting, Benusa shared that revenues were more than budgeted for the 2011 fiscal year by about $2.8 million or 1.5 percent of the most recent revised budget.

Some of the reasons are:

• The Minnesota Department of Education changed the special education funding formula, which brought in $1.254 million in additional revenue.

• $604,000 in COBRA insurance fees from previous employees

• $555,577 from about 90 more enrolled students

• $293,617 for additional taxes

• $250,000 from collections on third-party billings

As revenue increased slightly in several areas of the school district more than anticipated, expenses decreased as well. Benusa wrote that expenditures were under budget by about $3.7 million or 1.9 percent of the district’s operating expenditure budget.

Expenditure cuts included:

• The actual costs of special education, curriculum writing and staff development salaries were $964,877 less than budgeted.

• $1.968 million under budget for purchased service expenditures, including about $1.4 million “due to cost containment by management and staff.”

• $810,847 less was used in supplies, including fuel.

“We had a particularly complex year again for reporting,” Benusa said of the audit process. “Although the results aren’t final, we don’t anticipate any significant changes.”

After the presentation, School Board Chairperson Deane Henke talked about the “hardship” the state has been putting the district’s cash flow by shifting payments from school districts to balance the state budget.

Director Kim Green praised Benusa and her staff for being “conservative” with the district’s budget and talked about how “challenging” it has been working with the state “in order for us to manage our operating expenses day to day.”

The finalized audit responses for the 2011 fiscal year will be presented to the Osseo School District 279 School Board for approval in November.