Despite some positive economic signs, the Wayland Union school district is on track for a budget deficit of about $306,000 for the end of the 2016-17 iscal year.
Finance Director Bill Melching told the Board of Education Monday night at a work session, “Revenues are just not keeping up with costs.”
Superintendent Norm Taylor said the $306,000 represents about 1% of the total budget.
Of course, the deficit would be absorbed by the fund balance, which is more than 8% of the budget.
This news contrasted with what was reported last month about the mild winter reducing expenses for heating and snow removal.
There was more potential good economic news reported by Taylor, who said Gov. Rick Snyder’s state budget recommendations for K-12 funding next year would result in about $120 more pupil in state aid. However, changes in blending the student counts would be costly to Wayland.
The state is intent on having the fourth Friday count in September counts 50 percent and the count in February the same. Under the old formula, the September count translated into 90 percent and the February only 10%. Wayland consistently in recent years has had higher student numbers on the fourth Friday than in February.
“We have been trending to go up (in student population) in the fall, do down some in February and then go back up the following September,” Taylor said.
Melching noted that Wayland in the February count this year was down the equivalent of 21.69 students. He said the loss of 22 students means a drop in about $162,000 for the local district.
The projected state aid increase would have added $251,000 to the schools’ coffers, but substracting the $162,000 leaves a net gain of about $190,000.
Melching also told board members retirement costs for the district are expected to decrease by about $100,000.
