District envisions shortfall

The 2011 closure of Asa Wood Elementary School and the subsequent consolidation of District 4 students into two campuses helped to trim expenses, but board members were advised at their last meeting declining enrollment could mean a shortfall of $249,000 for the 2012-’13 year.

District 4 is funded from the state for about $6,000 for each high school student and about $4,000 for each elementary student. As Libby High will graduate about 120 students on June 3 and with 42 fewer students moving into high school curriculum next fall, the difference of new elementary students coming in will be about $81,000.

Anticipated additional expenses to the district include a 6 percent increase in the share the district pays for health insurance costs or about $45,000; Steps and Lanes increases will total about $123,309. That total, plus the anticipated loss in enrollment funding, brings the total to $249,309.

Steps and Lanes increases are salary increases to teachers for tenure and college credit advancements.

“It’s something we have to begin planning for,” Superintendent K.W. Maki said Friday morning. “It may not be that bad, but we need to think about it.”

   The superintendent said school districts were told there may be 1 to 1.6 additional funding from the state, which could lessen the deficit by $104,000, but it’s not something the district can count on.

   “We need to be preparing for that worst-case scenario,” Maki said.

   Admittedly, the superintendent said there are anticipated retirements coming upon graduation, and he said that will help.

   “We have upper echelon teachers making perhaps $62,000 and with benefits that may come to about $70,000. If that happens, and we bring in a new teacher with benefits for about $40,000, that’s a savings. That is one way we can see a savings.”

   He also suggested teachers may be willing forgo a raise, but he said he didn’t expect the unions to be in agreement.

   “Everything is more expensive, so I don’t anticipate that happening for long,” Maki said. “We are at the point where we’re still providing a good education for our students, maintaining our accreditation standards. However, without some additional revenue funding, the following year — 2013-’14 — the district will be in dire straits.

   “We can cut a little here or there, but I’m really concerned about the next year,” Maki said. “I just don’t see it (maintaining a balance) happening,” Maki said.

   Asked about that revenue source, Maki was asked whether that meant seeking a tax referendum.

   “We have done what residents wanted,” Maki said. “We’ve cut expenses,  (consolidated schools), I just don’t know what we’re going to do without hurting the education of our students. I think if we tell our story, explain our needs, people will support it, even those who do not have children in the district.”

   The district’s current budget is $7.905 million. Maki is making plans for next year’s budget to be about $7.7 million.

   During the board meeting last Monday, the board approved one of its largest monthly bills, for January, of $1.006 million.

   Board members are expected to approve its 2012-’13 budget during its August meeting.