St. Ignace Schools To Use Surplus Fund To Erase Expected $164K Deficit
By Paul Gingras

"Financially, we are not out of the woods, yet, but we are back on the path that takes us there," reported St. Ignace Area Schools Superintendent Mike Springsteen at the Monday, June 11, school board meeting at which the board adopted its amended 2006/2007 budget, its projected 2007/2008 budget, and set administrative salaries.

This year, the state ultimately provided the school with $7,085 per student and the district will end the school year with a fund balance of $489,166. By the time the school is audited in August, Business Manager Kathy McLeod expects the district to have taken in $6,666,859 and spent $6,533,188.

For the athletic fund, she expects the district to have taken in approximately $201,000 and spent $171,000. Added to the previous fund balance will create a new beginning balance of $74,000.

For the school lunch program, the district will have taken in about $291,000 and spent $299,000, leaving a fund balance of about $44,000. More bills are on the way, but state and federal lunch funding is expected to trickle in this summer, so the district's lunch fund may be in the black by audit time, Mrs. McLeod explained.

Next year's revenues will depend on the state's per-pupil funding, declining enrollment, and other factors, said Mrs. McLeod. If the state maintains its school foundation allowance at the same rate as this year, St. Ignace will draw $163,952 from its savings to compensate for rising costs for salaries and supplies.

The board adopted its projected budget for the 2007/2008 school year, noting that the state could increase or decrease the amount of per-pupil funding. If so, the following figures would change.

The adopted budget relies on a $7,085 foundation allowance for 750 students. Enrollment has been dropping by 25 to 30 students annually, Mrs. McLeod said.

For the general fund, the district expects to take in $6,250,420 and spend about $6,414,372. It will draw $163,952 from is fund balance to cover expenses and add to a reserve fund to pay staff sick days, termination pay, and other costs. This will leave $275,214 in the fund balance.

For the athletic fund, the district expects to take in approximately $180,000 and spend $167,000, leaving a balance of $58,000, a figure which takes into account the previous fund balance.

For school lunch, the district expects to take in approximately $269,000 and spend $285,000, leaving a balance of $36,000. Drawing from the fund balance allows the district to avoid increasing the cost of school lunch, or cutting staffing for another year, Mrs. McLeod said. If the state or federal government increases lunch program funding, this could balance the budget, she added.

Prior to the regular meeting, the board held a public hearing to discuss millages that provide some of the district's funding.

This year, the district will levy 18 mills for school operations, expected to generate about $1.4 million. It is the second largest contributor to the school's general fund, most of which is used to pay salaries, Mrs. McLeod explained.

The district will also levy 1.6 mills to pay debts incurred for elementary school renovations. This will generate approximately $225,000.

For middle school renovations, the district will levy 2.6 mills, generating about $366,000.

For busses, it will levy 0.21 mills, generating about $29,000.

To pay debts for LaSalle High School renovations, the district will levy 0.9748 mills, generating approximately $137,000.

Altogether, the district collects 23.38 mills.

The board set the following administrative salaries for the 2007/2008 school year: LaSalle High School principal, $84,472; St. Ignace Elementary and Middle School principal, $73,440; business manager, $54,863.