However incompetently the District has been managing its finances I tend to be sympathetic to the School Board setting the levy at the maximum rate available to them. At the moment they are enjoying two additional million bucks courtesy of the Obama administration. I don’t much trust them (as if that’s a secret) but what the heck?
Here’s part of the email sent to Board members about today’s meeting:
Establishing a Maximum Levy Figure for Fiscal Year 2012
In September, school districts work with the Minnesota Department of Education to establish a maximum levy figure prior to developing the next fiscal year budget.According to the Minnesota Department of Education, 90-95% of school districts certify the maximum at this time. Their current forecast for FY 2012 certified levies on a statewide basis is a 7.1% increase.
Over the next two months the district will begin its FY 2012 budget process and a final levy figure will be set by the School Board in December.
Budget planning for FY 2012 for the Duluth Public Schools begins in November 2010. State law requires a final budget be approved by the School Board no later than June 2011.
What’s included in this levy?
Items funded within the levy include General Fund costs related to Referendum, Operating Capital, Reemployment Insurance, OPEB, and Alternative Facilities, among others. Other costs include Early Childhood Family Education, School-Age Care, and Debt Service.What’s the impact of levying less than the maximum or even a 0% increase?
1. Certain portions of school district levies are subject to matching funds from the state. In other words, if the district does not levy for those items it will lose additional state funding.
2. Some items within the levy are mandated by the state or federal government and the district is contractually obligated for some items. In other words, the expense must be paid, either through the levy or by taking money from the general fund.
3. Using general fund dollars to cover levy expenses would require additional budget cuts for FY 2012. At this point, the budget deficit for FY 2012 is projected to be $4 to $4.5 million.
4. Levying at a 0% increase could add about $3 million+ to the projected deficit. Cuts for FY 2012 would grow from a projected $4 million+ to approximately $7 million+.Specific information on our preliminary levy is being summarized and will be presented and discussed at the meeting tonight.