Business Manager Mike Fowler presented the 2010 Annual Business Office Report to the Clay Community School Board of Trustees during its recent meeting.
"We've got five main things we want to talk about," he said. "The cash balances, state funding cuts, food service and transportation costs, expenditures in the general fund and health insurance."
When comparing 2008-09 cash balances, the general fund was at $4,849,347, the capital projects fund was $2,869,262 and Transportation was $984,256, all of which was an increase of $847,703, $612,282 and $159,002, respectively. The school lunch budget was $403,821, a loss of $3,546.
"Anytime you are going into a downturn, you want to be prepared for that downturn," he said. "Our revenue has exceeded expenditures, which, if you are going into a downturn, that is where you want to be."
In 2009, Clay Community Schools received $27,571,839 in the basic grant and $203,500 in the preschool special education grant for a combined total of $27,775,339.
In 2010, the preschool special education grant was combined with the basic grant for a total of $27,703,623.
"Had the governor not cut anything, we would've lost $71,716," Fowler said. "But he did make cuts of about 4.6 percent, and we will know exact dollars later this month."
Based on the information obtained by Fowler, CCSC is projecting to lose approximately $1,246,663. The estimated total revenue loss by comparing 2009 to 2010 is $1,318,380.
"Where do we get the 1.3 million dollars," Fowler said.
He gave ideas to the board on how to recover the revenue loss, including surplus from the 2009 general fund structural surplus, retirements of teachers at the top of the salary scale who would be replaced with teachers near the bottom of the scale, the retirement of the Kids, Family and Community (KFC) Coordinator, projected severance cost reductions, elimination of bank FDIC charges and one time expenditures.
"Those savings all attribute to $1,336,098, we have covered the governor's deficit plus $17,719," he said. "So at this point, not saying the governor won't cut anymore, not talking about future health insurance increases, we have managed to get over the first wave that hit public schools."
"My concerns are still with the economy and with health insurance," he added.
Fowler continued with the presentation on the transportation costs and the actual food cost for lunch. In the health insurance bracket, he acknowledged 2009 was better than the past.
"Thirteen percent of general fund spending is due to health/dental insurance, this amounts to $3,360,000 in expenditures," he said. "If you are looking for savings, this is the biggest opportunity."
"The only way to get saving from health insurance is through strategic changes in plan design and culture," he said. "Financially speaking, we are better off than a lot of school corporations around the state."
Fowler said, because of the cash balances, the administration has time to make informed, thoughtful and rational decisions. He highlighted CCSC is continuing to move forward with new curriculum measures, new special education programs, new technology, new educational equipment and renovating buildings.
"Not only are we financially sound, but we are moving forward as we are doing it," he said. "We are not recommending any employee cuts at this time."