Whitnall School District Face $1.74 Million Revenue Limit Reduction

The Whitnall School District is facing a significant financial hole in its 2011-12 budget, mostly as a result of the newly adopted state budget, according to interim business manager Douglas Johnson. 

Johnson told school board members Monday the district's revenue limit will be reduced by approximately $1.74 million, an amount school officials hope to address by taking action on several budgetary options listed in a memo presented to the panel.

One major option school officials will likely examine is a reduction in retirement contributions of $746,000, according to Johnson. He also told the School Board he has been discussing different program options with Humana, the district's insurance carrier. As indicated in a memo, about $64,000 in insurance savings could be available. 

"I'm assuming it's going to be an increase in deductibles ... and doctor visit co-pays," board member Stephanie Richter said.  

Realizing a $294,000 savings as a result of staff turnover salaries and benefits and another $518,000 from a federal jobs program may also be examined in order to close the budget gap.

"Some of the problem with grant money is that it is here today, gone tomorrow," said Johnson, referring to the one-time nature of revenues generated by the federal program.

The school district may also attempt to shrink the gap through open enrollment, an option that could generate $119,000 should the district increase the number of open enrollment seats by 20.

The board also briefly discussed the option to transfer costs to Fund 80, which is outside of the tax revenue limit. In general, costs associated with community services can be transferred into Fund 80. 

One bit of positive fiscal news came in the form of a possible 1 to 2 percent reduction in property taxes, according to Johnson. 

"That was part of the governor's intentions, to lower the levies," he added. 

Superintendent Lowell Holtz reiterated the options in the memo were presented to the board to inform them of the process and not as recommendations. 

"This is one where you probably want to sit down with the finance committee and pick and choose which ones you most prefer and what would be most acceptable to the community," he said.