To the tune of student progress reports and the details of graduation ceremonies, the St. Ignace Area Schools board of education breathed a sigh of relief as it assessed the school year which ended Friday, June 9. No sooner had the celebrations ended, however, than the board had to approve three projected budgets to keep their system functioning until well into the next school year.

As it stands, the board adopted a 2006/2007 general fund budget that projects a balance of $304,000 at the end of the year. The school estimates that it will take in $6,400,000 in revenue and spend $6,500,000, but the $100,000 deficit will be subsidized by the general fund balance, said Business Manager Kathy McLeod.

These numbers are far from definite, she said, in part, because there will be three staff members to replace: First Grade Teacher Mary Randolph, LaSalle High School Secretary Margaret LaRocque, and Health and Nutrition Teacher Mary Sue Kunze. They will likely be replaced by employees lower on the pay scale.

Further, the school does not yet know for certain how many students it will have next year or how much the state provide in funding. The adopted budget is based on a student population of 778 students. Last year the district operated on revenue produced by 789 students.

Enrollment has declined for five years, Mrs. McLeod said, and to compensate, the state may offer more per-pupil funding to help equalize revenue among school districts throughout the state. That could amount to as much as $285 more per student next fall.

School budgets are constantly in flux, Mrs. McLeod said, in part because the district's fiscal year begins July 1 while the state's begins October 1, leaving the district guessing for the next several months. Nevertheless, the district must approve a budget to continue writing salary checks and other operational expenses throughout the summer.

"This is a people institution," said Superintendent Mike Springsteen, so the vast majority of school expenses involves salaries."

Mrs. McLeod's projections show that the St. Ignace Area Schools will spend about $830,000 in support staff salaries next school year and contribute approximately $147,000 to their retirement packages. The district will also spend close to $2,000,208 in teacher salaries and contribute approximately $392,000 to their retirement accounts.

The next major expense involves health insurance. For all employees, the district will pay approximately $860,000 in premiums.

All of these expenses increase yearly, Ms. McLeod added, owing to raises, increased costs for health insurance, and increases in the amount the state requires districts to pay for retirement, which is now 17.74 percent per $100 of a given salary.

Mrs. McLeod said that if the school keeps running a deficit, eventually the district will have to make cuts, and these would most likely be in the teaching staff, which would increase class sizes for remaining teachers.

Many factors could change, however, she added. Retirements save the school money, increased student population and per-pupil funding could help, also.

The school board also approved next year's athletic budget of $170,000 in revenues and about $158,000 in expenditures, leaving an estimated balance of $55,000.

The athletic program is subsidized in part with $125,000 from the general fund, Ms. McLeod said. Without doing that, the school could not pay for its coaches, supplies, or materials unless other revenue was found.

The district employs four football coaches, six basketball coaches, four volleyball coaches, four track coaches, two wrestling coaches, and four cheerleading coaches for $108,000 in salaries and $15,400 in retirement expenses. Coaches work six to eight weeks a year, she added.

The board also approved the projected food service budget for next year. The school is likely to spend $30,000 more than it takes in, but because the food service budget began with a positive fund balance, Ms. McLeod expects a positive balance of approximately $15,000 by the end of the year.

This could change dramatically, however, owing to changes in salary. Head Cook Beverly Fraser will retire Saturday, July 1 and probably will be replaced by a cook with less seniority and lower pay scale.

Things could be bad for the food service budget in 2007-2008 if things continue as they are, but the school can cut expenses, she said, by altering food purchases or receiving more in state aid for the lunch program.