Jun. 27—BEMIDJI — Ahead of the start of a new fiscal year, the
Bemidji Area Schools
Board of Education approved its preliminary operating budget for 2023-2024.
School boards are required to approve their budgets prior to July 1, or before the start of the upcoming fiscal year, with the idea that budgeting will change throughout the school year.
District Business Director Ashley Eastridge pointed to several numbers reflecting the financial well-being of the district, in particular its $68.1 million in operating revenue and $64 million in expenditures.
Leaving a $3.3 million surplus, Eastridge emphasized that $4.9 million in federal COVID funds will be expiring this upcoming fiscal year which illustrates a $1.6 million structural deficit for the district.
On the upside, she added that the district's fund balance should be around 10% of its operating expenses. With a projected ending balance of $8.6 million, this would leave the district with a 13.4% fund balance relative to its $64 million in operating expenses.
In the general fund — which includes the aforementioned operating budget and funds that the district is required to use for specific purposes per state statute — the district projects a $12 million beginning balance.
With $79.2 million in revenue and $77 million in expenditures making way for a $2.2 million surplus, the district's budget book states the following assumptions and projections when creating the general fund budget:
* Increase in general education formula aid of 4%.
* Increase in compensatory revenue funding of $2.2 million based on free and reduced lunch applications.
* Decrease in enrollment by 2% from 2022-2023.
* Increase in special education cross-subsidy from 40% to 44% resulting in $2.2 million.
* Estimated increase in unsettled employee costs for negotiated labor agreements.
* Estimated inflationary factor on expenditures.
* Planned spending of $818,500 to renew the curriculum cycle.
* Planned spending of $300,000 for transportation fleet.
* Planned spending of $404,500 for technology needs.
Eastridge also broke down the district's funding sources, which include 10.4% federal funds versus the 9.1% average from districts across the state. It also receives 76% from state sources versus the 71.1% statewide average and 13.4% from local sources, lower than the 19.8% average.
"Our district received a significantly lower percentage from local sources than the statewide average," Eastridge said. "Our district has been trying to be respectful to our local taxpayers and only utilize what is necessary for operations."