An $86,000 deficit is reflected in the preliminary budget that will be presented to the Iola-Scandinavia School Board at its July 14 meeting.
The proposed 2014-15 budget was approved by the Finance Committee at its July 2 meeting.
Fund 10 expenditures for the next school year are projected to be $7,766,028, with revenues of $7,680,028.
“I am confident as we begin to work through this budget we will find ways to lessen the projected deficit,” said Business Manager Sarah Thiel. “Our goal is to deliver a balanced budget by the end of the 2014-15 school year.”
District Administrator David Dyb said the school district faced a deficit of about $80,000 in its 2013-14 budget.
By the end of the year, the budget was about $10,000 “to the good,” he noted, “and that was with a harsh winter.”
The projected deficit is mostly due to a $151,277 drop in state aid. In 2013-14, the district received $3,407,510, while in 2014-15 the district is projected to receive $3,256,233.
“We were not one of the districts to receive more aid,” Dyb said.
He explained that the reduction in aid is due to fewer students and a higher property evaluation for the I-S School District compared to other areas in the state.
Finance Committee member Mark Sether projected no teacher cuts for the 2014-15 school year.
“There will be discussion and decisions ahead as we begin work on future budgets,” Thiel said.
Dyb noted that the three recent teacher retirements will affect future budgets, since the salary will be much lower for their replacements. The three recent retirees are Bill Lund, Lynn Bloechl and Diane Opperman.
The proposed 2014-15 tax levy is estimated at $4,130,771, compared to $4,017,597 in 2013-14. This reflects a $126,755 increase.
With an estimated equalized value of $298,041,679, the 2014-15 mill rate is at 10.37, at 2.7 percent increase from 2013-14.
The preliminary 2014-15 budget will be considered for approval at the school board’s July 14 meeting. It will then be presented at the district’s annual meeting in August.