Northfield Schools Projected to Cut More Than $700,000 From Budget

More than $700,000 is likely to be cut from Northfield Public Schools’ budget for next school year.

It will be a necessary step, Superintendent Chris Richardson said, to maintain a balanced budget for the district after expected reductions in state aid comes from lawmakers.

The district’s projects its deficit at $2.4 million for the 2011-12 school year, though the district will use approximately $1.7 million from its $7 million fund balance to cover the majority of that deficit. This year’s school budget is $47.6 million.

Planning for the cuts kicks into high gear now, with the board expected to vote on next year’s budget in April.

And, unfortunately, district officials are working in a world of “what ifs?”

With a projected $6.2 billion state budget deficit, the easiest target is education, which accounts for about 40 percent of Minnesota’s budget.

At Monday night’s school board meeting, Richardson detailed the dire financial situation of the state to the school board and the handful audience members.

In short, there’s no easy solution.

“We have a much more daunting situation facing us,” Richardson said, though Northfield is in a “position of strength” after building a fund balance the past several years. “We have worked hard to develop a cash balance to support ourselves in terms of what we knew would be cash shortfalls and (reduced state aid).”

Last week, the Lakeville School Board cut $15.8 million from its budget, cutting art programming, teachers, and effectively closing down one of its elementary schools.

Though the Northfield district’s projected deficit is just that—a projection.

District officials believe the state’s likely blow will be a reduction in per pupil funding, which is currently $5,124 and accounts for about 58 percent of the Northfield district’s revenue.

The Minnesota School Board Association anticipates a $400-500 reduction to that number, giving Northfield officials the projected $2.7 million deficit for the next school year.

Richardson, highlighting a report from the MSBA, touched on several options that are a possibility for Gov. Mark Dayton and the Minnesota Legislature to consider.

They include:

• Increase the funding shift for school districts. For the past two school years, the state has “shifted” payments to help balance the state budget. What used to be a 10-percent shift, which was the norm for many years, has grown to a 30-percent shift. A further shift could push many school districts into bankruptcy.

• Add Racinos to the state revenue stream. This plan, in short, would add additional gambling opportunities throughout the state and could bring on gambling boats on the Mississippi River.

• Further cut Local Government Aid to cities and counties.

• Add a sales tax on clothing—45 states currently tax clothing sales.

• Tax the “rich.”

• Put off repaying the original shifts to school districts.

• Cut funding to human services and education.

It’s too early to say what could be cut from Northfield’s 2011-12 school budget.

Richardson said everything is on the table for consideration, including reductions in staffing, programming and gauging interest for early retirements.

Early retirements could be a way to save money on higher earners in the district, Richardson said, and could help retain up-and-coming teachers who show potential to be top-notch educators.

Those plans will develop in the coming weeks with the help of more than 100 teachers and parents who volunteered to be part of the district’s budget reduction teams.

“You put that many people together and you’ll get better resolutions and solutions,” Richardson said.

Board Chair Kari Nelson agreed.

“It’s a very good process,” she said. “It really does educate the public a great deal about where the money goes and how it’s being spent.”

Regardless of what’s identified to be cut, Richardson said Northfield, like districts throughout the state, are dealing with “uncharted territory.

“We’ve got to work hard to position ourselves to be ready for anything that comes down the line.”