School Board Hears Preliminary Budget for 2011-2012 Year

At its May 19 meeting, the Mehlville school board saw a preliminary budget for the 2011-2012 school year that reflected a slight deficit with decreases of 2.4 percent in revenues and 2 percent in expenditures.

The budget—which must be passed by June 30—calls for $99,630,000 in revenues and $99,740,000 in expenses, leaving the district with a $110,000 deficit.

In past years, the district operated with excess revenues of $2.9 million in 2008-2009, $1.1 million in 2009-2010 and $132,000 forecasted for the 2010-2011 year.

Next year’s projections will place the district at its current 14.5 to 15 percent operating balance at the end of the 2012 school year, well above the state-mandated 3 percent balance.

“That could go up or down depending on what we find out,” said Chief Financial Officer Noel Knobloch. “(The budget) is preliminary in that we are still working with unfinished staffing positions. We know about how many people we are going to have, but we don't know exactly where they fit in the salary schedules and we don't have a final answer on transportation (funding).”

Revenues are expected to fall due to assessed values and a tax drop of 2.5 percent by next year, Knobloch said.

The district is also expecting to receive approximately $1 million less in state and federal funding next year because of ended federal stimulus money and state foundation formula shortfalls.

In 2011-2012, the budget estimates that the district will receive 79 percent of its money from local revenue, 15 percent from the state, 4 from federal funds, 1 from the county and 1 percent from other sources. Projections are all within 2 percent of the forecasted budget from the current year.  

Predicted expenses have been reduced by $2.1 million, or 2 percent, mainly due to a salary freeze and 27-30 eliminated staff positions. Three administrative positions, 10 certified positions and 14-15 classified positions combine for dropping the budget by about $1.3 million, Knobloch said.

The , the transition from a and reorganization have already accounted for the staff reductions.  

Service expenses in the preliminary budget were reduced by 8 percent and included $230,000 in savings from a new copier contract. The board also voted 5-1 to to table voting to reducing the district’s travel reimbursement from .50 to .25 cents per mile for a savings of $75,000. Board member Mark Stoner voted in opposition.

However, savings are partially offset by Knobloch’s predictions of an increase in contribution rates to staff retirement programs and a 4-6 percent rise in health insurance premiums in January 2012.

In capital expenses, the district has put off most facilities spending, reducing the capital budget by one-third.

One expense that the district will spend is $150,000 of federal food service funds to make improvements to the cafeteria at Margaret Buerkle Middle School. In the summer of 2012, the school is on track to get new freezers and other renovations.

“That kitchen has been in dire need of it and funding comes directly from the school food nutrition program,” said Deputy Superintendent Eric Knost. “We have to spend that money, we can’t bank it.”

Salaries and benefits account for 76 percent of expenditures, with purchased services accounting for 5 percent, supplies 10 percent, capital expenses 1 percent and principal and interest payments for 8 percent.

The board also:

-Welcomed new .

-Unanimously approved the certified employee discussion .

-Set a meeting for June 11 at 10 a.m. to interview candidates for the open board seat.

-Unanimously approved budget adjustments for the 2010-2011 school year.

-Unanimously approved a contract with Messenger Printing to continue printing the 12-page Mehlville Messenger four times a year for every resident and business in the Mehlville School District. Messenger Printing was the lowest bid, and came in at $1,000 less than last year per issue. The total cost for four Messengers will be $33,156.

-Heard a report from Board Secretary Elaine Powers saying as of May 19, no one has applied for the  vacated by Michael Ocello.