The Wayland Board of Education Monday night adopted a fiscal year 2016-17 budget of just over $28 million, slightly smaller than a year ago.
Total revenues are pegged at $28,016,367 while expenditures have been estimated at $27,860,479, but the surplus from last year totaled $334,754 to bring the current fund balance as a percentage of the budget to 8.75%. The figure would have been even higher except that the board voted June 13 to pay down the debt for bus purchases, saving more than $8,000.
The fund balance for the end of fiscal year 2016-17 is estimated at $2,567,462, or 9.3%.
The schools’ largest source of revenue, as usual is from state aid, which will increase by $120 to $7,511 per pupil beginning Oct. 1. Finance Director Bill Melching said the per-pupil state aid for the first time is higher than what public schools received in 2010-11.
Because Wayland is anticipating an increase of 20 students, its population will be an estimated 2,951 at the start of the next academic year.
But expenses will climb in the next year because of 1% salary increases for staff and faculty, adding as many as a dozen to health insurance rolls to meet requirements of the Affordable Health care Act and hiring four more teachers.
The school district will operate on 18 local mills levied on commercial, industrial and second residential properties and 8.4 mills separately for debt retirement.
The biggest gain in revenue over what was projected earlier came in Gun Lake Casino support, up by more than $100,000. Another payment is expected next month, but that money is not used in the general fund.
Another increase in costs came from the food service budget, where revenues decreased by $29,000, which Taylor said was the result of more students qualifying for free and reduced price lunches and breakfasts. However, the food service budget is showing a slight surplus over the past year.
Superintendent Norm Taylor noted Wayland has to borrow $1.6 million from United Bank on Aug. 15 at a rate of 0.20 percent. The loan, which last year was for $2.4 million, is necessary to handle the cash flow problem experienced every year in late summer. The schools borrow against anticipated state aid.
Just one correction on the district state aid borrowing for next year. The district will be borrowing $1.6 million. The $2.4 million was the amount of the district’s state aid note for the current school year.
Thanks, and sorry.