CC AGENDA 09302003 - Laserfiche WebLink

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Finances - On July 8, 2003, the school board approved Citizens Ad Hoc Finance Advisory Committee made the following background summary points, observations, and recornmendations: Surnmarypoints relative to why ISD 282 faces financial challenges: 1. From the 1991-92 school year to the 2002-03 school year, public school districts have received, on average, a 2.5% annual increase in basic foundation aid. 2. There will be no increase in basic foundation aid for the 2003-04 and 2004-05 school years. 3. Historically, ISD 282's average annual increase in expenditures is 6-7%. 4. The gap between revenue and expenditures is the primary cause of ISD 282's financial difficulty. 5. There has been an increasing number of un-funded or under-funded state and federal mandates, particularly over the past ten years. In fact, the 2003 legislative session ended with additional un-funded mandates thrown at ISD 282. 6. ISD 282 is hugely under-funded relative to the maintenance and retrofit demands of its facilities and there is no legal way to build up a reserve over time for facilities. Observations regarding financial management of ISD 282: 1. The school board has been a prudent manager of the budget. 2. There have been ongoing annual budget reductions. 3. Revenue has been increased through accepting open-enrollment students and the revenue received has exceeded any additional expenses the district may have incurred because of additional students. However, the student capacity-limit has nearly been reached so this will not be a part of the solution for future budgets. 4. Additional revenue has been received through a court-ordered desegregation program. However, this is a year- by-year situation and is not revenue that should automatically be counted on.