The Haines Borough school board on Tuesday unanimously approved its $4.85 million general fund budget for the coming year, which includes some recent staffing reductions and drawing $287,000 from savings.
Interim superintendent Rich Carlson said drawing from the district’s general fund balance to bridge the budget gap was “significant,” as the district will deplete its savings account a year from now if current funding and spending levels remain the same.
The budget accommodates a $423,000 loss in anticipated revenue, including from a drop in projected district enrollment from 277 to 256. The drop includes three special-needs students, which is equivalent in funding to the loss of 39 students in the state’s funding formula for schools.
The departure of the students also factored into the district’s decision to eliminate a full-time special education teacher and a special education aide. The district also cut a full-time technology integration specialist position.
To help reduce spending, the district used funds from the current fiscal year to buy textbooks, computers and supplies. In addition, the district will cover $40,000 for student activities with an existing balance of $80,000 in the student activities fund, Carlson said.
Cost increases for the coming year include a 13 percent jump in health insurance costs.
The district’s projected enrollment drop would put the district “on the cusp” of qualifying for state “hold harmless” funds, which help buffer districts from precipitous drops in enrollment, Carlson said.
The district’s general fund revenues include an anticipated $2.5 million in state foundation funding, and a $1.56 million contribution from the Haines Borough. (The borough provides an additional $210,000 to the district for items including Community Education, hot lunch and activities.)
Carlson said he expects the district to have around $528,000 in its general fund balance at the end of the fiscal year in June. As the district’s fund balance only equals one-tenth of general fund spending, any additional funds will be placed in a separate fund for future technology upgrades, he told the board Tuesday.
“We know we need technology and it’s a very expensive item,” he said.
Figures provided by Carlson Tuesday showed last year’s budget was approved at $4.77 million, but the district ultimately will spend about $5.18 million when the fiscal year ends June 30.