Following a public hearing before their September meeting, the Loup City Board of education approved a 2011-12 budget calling for decreases in school spending and in tax levy. The new budget totals just over $7.9m. – $1,334,749 less than the previous year’s budget. The district’s total tax levy decreased from $1.10 to $1.066 per. $100 of assessed valuation, a decrease of 2.92%. Assessed Valuations in the LCPS district increased over $21m or 7.29% from 2010-11 to 2011-12.
Several budget factors determined how we were able to do, “more with less,” in reducing the overall budget while still maintaining the current staff and programs:
- Reduced General Fund expenditures: The expenditures and transfers in our general fund budget have been reduced by $1,313,118. This reduction was due in large part by amending the budget last spring to move our unused budget authority into the 2010-11 budget. Without the amended budget figures, the 2011-12 budget shows an actual spending decrease of $284,000 over the originally published 2010-11 budget.
This reduction in spending was made possible by our philosophy of zero-based budgeting in which every line items is scrutinized and justified as a need rather than a want, In the 2012 budget, all spending is considered guilty until rove innocent.
- Refinanced the Bond Fund: By refinancing the remaining five years on the bond fund, we will save over $130k in interest. This year’s bond levy was reduced a little over $.03 following a repayment of $124k to the general fund last year and a valuation increase this year By locking in the low interest rate of the refinance agreement, we hope to maintain the bond levy at a consistent rate until the bond is retired
- Maintained a healthy Carryover Balance: Throughout last school year our staff worked very hard to conserve district resources. This effort resulted in a healthy beginning balance, and less need for new tax funding.
- Utilized some Cash Reserves: The maximum allowable cash reserve amount in the 2011-12 budget is $2,039,004 (45% of General Fund disbursements and transfers). We have built $1,948,078 in reserves into the budget with $1.3m in necessary cash reserves and $649k in the depreciation fund. We also have $1.1m in unused budget authority, which carries forward into future budget years. With proposed legislation to limit district’s budget authority, we will be working hard to preserve the cash reserves and budget authority that we have worked so hard over the years to build.
- Worked with the LCEA: During the process of salary negotiations, the LCEA was very responsive to our budget challenges and settled for a very modest 2% salary and benefits increase. This settlement helped us to maintain our present staffing level.
- Listened to District Shareholders: During a series of public forums last spring, district shareholders told us what programs and services were important to them, as well as the toll that tax burdens took on families and businesses. This public input helped us set budget priorities and plan for the future.
While our tax levy is one of the lowest in central Nebraska, our budget challenges will continue into the next year and beyond. By working together, we will be able to meet the challenge, and provide a world-class education for our students, maintain facilities that the community can share and take pride in, and continue to offer programs which will fuel future growth. No matter what the challenge, our guiding principal remains unchanged- to make sound decisions with the good of our students as our first priority.
