The Wayland Union School District is expecting to have a flat budget for fiscal year 2020-21 because of the COVID-19 crisis and economic slump.
However, Patricia Velie, assistant superintendent for finance and operations, warned the Board of Education Monday night that more than $453,000 may have to be taken from the projected fund balance to meet expenses in the coming year.
Velie told board members the fund balance, also referred to as a “rainy day fund,” had been built up to about 15 percent of the total budget, or $4.7 million. However, the state’s per-pupil state aid allowance, the district’s largest source of revenue, probably will remain at $8,111 or perhaps even be decreased. The Coronavirus epidemic since March 16 has caused the shutdown of economic activity.
“My assumption (several months ago) was that we wouldn’t have to borrow money (against anticipated state aid), but with what we have now in front of us, we’ll have to use part of that fund balance to meet payroll,” Velie said.
She noted that as much as 82 percent of most public school budgets are tied to employee salaries and benefits because education is a people-intensive business.
So plans once again to borrow $1.3 million against state aid are being arranged with David Rose at United Bank. The move protects the schools from running out of money before the state budget for the next year begins Oct. 1.
Wayland officials are budgeting for a loss of 50 students in enrollment, which also reduces revenue. Because it isn’t known what the state will provide, Velie commented, “We have to be ready to react immediately.”
Furthermore, a drop in revenue from the Gun Lake Casino has to be expected since was closed by COVID-19 for nearly three months.
Velie said the current budget shows $24,888,487 in revenue and $25,695,355 in expenditures, but the shortfall is expected to be picked up by the remaining state aid payments before October.
Meanwhile, tentative plans are forging ahead on opening schools this fall.
“There’s a lot of unknowns about opening up next fall,” said Teresa Fulk, assistant superintendent for instruction. “A lot of parents are depending on us to be here,” but she acknowledged there are some still reluctant to send their children to school because of the potential threat of spreading the virus.
The district will consider options, including county-wide virtual learning (on-line) programs.
In other business at its first in-person meeting in almost three months, the board:
- Thanked and bid adieu to outgoing Supt. Norman Taylor, who is retiring June 30 after serving the district for 10 years.
Board member Dan Cassini said to Taylor, “I think everybody knows this is a better district than when your took over.”
- Agreed to a contract with new Supt. Dr. Christina Hinds of Mattawan calling for an annual salary of $135,000.
- Renewed the contract with Chartwells for food service at a slight increase of about $40 per month. Velie said the schools could charge students another nickel for each meal, but she recommended waiting a year because of the economic downturn.
