Laws soften school district deficit

Libby School District, announcing a $700,000 shortfall just five months ago, has been bolstered by new funding laws that effectively reduce the deficit to just $92,127 below the 2013 budget.

“It is good news,” said Libby Superintendent K.W. Maki. “We’ve made cuts, and we were thinking a much larger deficit.”

Since the $700,000 budget shortfall was anticipated, the district has twice cut programs and staff to achieve a balanced 2014 budget.

Then, the day before the failed mill levy vote, Gov. Steve Bullock signed into law funding mechanisms as a result of Senate and House bills that, with district belt-tightening, effectively eliminated the deficit, short of $92,127.

“We are so appreciative of what Sen. Chas Vincent has been able to do. His support of this has been very important.,” Maki said.

While exact funding figures still are being computed in Helena, four bills that became law this year may add several hundred thousand in funding to the Libby school district.

Heading into next year, the district could approve a budget of $7.6 million compared to a budget of $7.7 million this year.

Vincent (R-Libby) said the added revenue will help the Libby district as it attempts to cope with declining enrollment and loss of funding.

“A basic entitlement of $70,560 ($23,000 under current law) for the elementary, $80,000 for the middle school ($67,000 currently) and $290,000 ($262,000 currently) for the high school for about $88,560 in additional funding,” Vincent said.

In addition to the basic entitlement funding, the bills increase funding per student. This year, the district received state funding of $5,075 for each elementary student and $6,497 for each high-schooler. Next year, with the new law in place, the district will receive $5,120 for each elementary student and $6,555 for each high-school student. The following school year, the district will receive $5,226 for each elementary school student and $6,691 for each high school student.

Compounding the failed mill levy, the district is looking at a declined enrollment for 2014, which partially dictates funding. During the May board meeting, Libby’s enrollment was 1,137, which is 35 students fewer than the 1,172 of the same period last year.

Vincent also said the passage of SB 191 will allow the district to use its tuition levy to pay for unfunded special-education costs for students who qualify.

Vincent said for most special students, this may not generate any levy authority, but if the district has high-cost students who qualify for services under IDEA, it could be a benefit.

The fourth bill, SB 348, while not providing actual additional funding, allows districts more financial flexibility with funding through transfers.

Janelle Mickelson, of the Finance Department of the Office of Public Instruction, said the Legislature has for the first time in years kept its promise to school districts by approving an incremental increase of funding to local districts.

“They (legislators) did well by the school districts,” Mickelson said, indicating there may have been an incentive by the Legislature to further fund districts. “I’m not saying this is the reason, but legislators could have been concerned about lawsuits (about inadequately funding schools.) There has been an awful lot put on the local taxpayers.”

Mickelson’s comment is something with which Maki agreed.

“Sure it was,” Maki said about legislators fearing lawsuits from districts. “Funding schools was part of the law, and (the Legislature) has kept its promise for (increased) funding. We’re thankful the Republicans like Vincent and the Democrats came together to keep their promise to students.”

Maki said the bills will enable Libby School District to better plan budgets. Also, Maki said preliminary figures indicate an increase in district enrollment starting in 2015.