SD67’s finances finally in order
Four months ago, School District 67 was staring down the barrel of a $1.2-million deficit and had lost public confidence in its financial planning as it rolled out a draft budget for 2020-21.
Fast-forward to Monday night and the district’s top two administrators are gone, there’s a projected $830,000-million surplus for the year ended June 30, and a suite of new systems are being put into place to ensure accountability in the 2020-21 budget that was approved unanimously by the school board.
“I remember sitting in this room in February. It was a loud, kind of raucous night here with over 100 people here before COVID, with all kinds of budget questions and deliberations and some emotion,” Trustee Dave Stathers said at Monday night’s meeting, which was held in the IMC Building.
“We’ve come a long way since February, board. We’re running a surplus now — that’s pretty amazing since we were so far behind in February.”
Stathers praised staff, financial consultants and the broader school community for pulling together to finish the new budget, after superintendent Wendy Hyer and secretary-treasurer Kevin Lorenz both went on medical leave following the February meeting.
With an enrolment decline of 188 full-time-equivalent students expected in September, Trustee Shelley Clarke acknowledged the board had to make some “very, very difficult decisions” for 2020-21, including cutting the equivalent of 15 FTE teaching positions.
“But the reality is,” continued Clarke, “we live within a budget (based on) how many students we have.”
The 2020-21 budget totals $71.7 million, down from $73.4 million for the current year. The new budget repurposes the projected $830,000 surplus as operating reserves, which will just barely bring the district within its goal of having a cushion equivalent to 1-3% of the budget.
Trustees also Monday approved in principle a pair of policy amendments that will tighten up financial controls. The first spells out in detail when the board may draw down operating reserves below the target range. The second requires the superintendent to receive board approval before spending money from the local capital account.
The need for board oversight became apparent this spring, when trustees were surprised to learn staff had spent $2.5 million on new computers and software that depleted reserves and contributed to a $240,000 deficit that was carried into 2019-20
The board earlier this month parted ways with Lorenz and began the hunt for a new secretarytreasurer, while Hyer is due to retire July 31. Her former assistant, Todd Manuel, who has been acting superintendent since February, officially takes over the top job on Aug. 1.