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Board approves $35.6M budget
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MONROE - The Monroe School Board Monday approved a total preliminary 2011-12 budget of $35.6 million, a decrease of 5.54 percent from last year.

Monroe School District Business Manager Ron Olson presented the preliminary budget in advance of the district's annual meeting Monday, Oct. 17. It includes the $1.87 million in cuts the district made after taxpayers rejected a four-year, $8 million non-recurring referendum in April.

Under the budget proposal, the district will spend $28.56 million on general fund expenditures this year, down 6.17 percent compared to last year. Cuts included eliminating 11.4 teaching positions, eliminating 5.9 support staff positions, slashing the technology budget $325,000, reducing the maintenance budget $100,000 and trimming the co-curricular budget $24,500.

The preliminary budget also includes a salary schedule and step freeze in the contract with the Monroe Education Association, and increasing the amount teachers pay into the state retirement system to 5.9 percent of their salary.

Olson said the district will operate with an $811,771 deficit in the general fund for 2011-12. That deficit will be offset by $400,000 the district carried over from last year's budget and they will plug the rest by trying to bring in the budget under again or using fund balance to cover the deficit, he said.

The district is receiving about $1.72 million less in general state aid this year compared to last year.

"It definitely has a great impact on us," Olson said. "With state aid frozen, I don't see us regrouping on that line item."

The total levy is projected to be $11.18 million, a decrease of 8.94 percent over last year. Olson said if property values stay the same, the tax rate is estimated to decrease $1.12 per $1,000 of assessed value. He added that if the property values drop 2 percent, then the tax rate will drop 88 cents per $1,000.

As yet, the district does not know what the equalized value for the district will be, Olson said.

The preliminary budget includes $450,543 in one-time Federal EdJob funding and $190,000 in Microsoft Settlement credits that both will not carry over to next year.

The district also is seeing a decline in enrollment. Olson is projecting that there are 2,418 students who are being counted in the enrollment, which is 59 students less than the 2,477 in 2010. Olson said the district is still finalizing the third September enrollment count. The district will receive a one-year declining enrollment exemption of $380,269. However, Olson said, the $380,000 will not be able to carry over for next year's budget. The virtual school fund is seeing a significant reduction due to a decrease in students and reduction in open enrollment revenues.

Through refinancing of bonds, the district is expected to save more than $100,000 each year.

"That's a $380,000 hole you are starting off with on the membership side," Olson said of budgeting beyond this year. "It won't be any easier than it is now."