MONROE - Lower health insurance costs may help the Monroe school district keep its budget deficit under $2 million for the 2015-16 school year.
"It's a much, much better place than I thought we'd be in," Ron Olson, the district's business manager, told the school board Monday.
The district's budget projections looked grim after Gov. Scott Walker released his proposed state budget in early February. With no increase to the revenue limit and the elimination of additional $150 per-pupil aid for 2015-16, Olson had estimated a $2.14-million deficit for next year, more than twice the $1.03-million deficit budgeted for 2014-15.
But since Walker's budget was released, other factors that impact the school district's finances have changed. Among those changes, health insurance premiums are the largest.
Olson initially estimated a 5-percent increase in health insurance costs for next year - some districts are dealing with upwards of 10-percent increases, he said - but companies competing for the district's business are instead proposing a reduction in premiums. His new estimate comes in at a 5.8 percent decrease, which is about $700,000 less than the initial estimate.
That, and other changes such as lower transportation costs and retirements, bring the projected budget deficit down to $1.55 million for 2015-16, according to Olson. That's still a 50.5 percent increase from this year's deficit.
"It's getting to be devastating to schools, this lack of revenue increase," Olson said. "If it wasn't for the health insurance decrease, we'd be in a much worse place."
Olson said he hopes legislators realize that a frozen revenue limit and continual aid decreases are "not sustainable and are hurting school districts."
Salaries are projected to increase 1.5 percent next year based on the Consumer Price Index.
Preliminary budget projections for the district include about $28.4 million in expenses for the 2015-16 school year.
Monroe's pupil count, excluding summer school enrollment, is expected to drop slightly next year to 2,426 from 2,440 this year, a .6 percent decrease.
"It's a much, much better place than I thought we'd be in," Ron Olson, the district's business manager, told the school board Monday.
The district's budget projections looked grim after Gov. Scott Walker released his proposed state budget in early February. With no increase to the revenue limit and the elimination of additional $150 per-pupil aid for 2015-16, Olson had estimated a $2.14-million deficit for next year, more than twice the $1.03-million deficit budgeted for 2014-15.
But since Walker's budget was released, other factors that impact the school district's finances have changed. Among those changes, health insurance premiums are the largest.
Olson initially estimated a 5-percent increase in health insurance costs for next year - some districts are dealing with upwards of 10-percent increases, he said - but companies competing for the district's business are instead proposing a reduction in premiums. His new estimate comes in at a 5.8 percent decrease, which is about $700,000 less than the initial estimate.
That, and other changes such as lower transportation costs and retirements, bring the projected budget deficit down to $1.55 million for 2015-16, according to Olson. That's still a 50.5 percent increase from this year's deficit.
"It's getting to be devastating to schools, this lack of revenue increase," Olson said. "If it wasn't for the health insurance decrease, we'd be in a much worse place."
Olson said he hopes legislators realize that a frozen revenue limit and continual aid decreases are "not sustainable and are hurting school districts."
Salaries are projected to increase 1.5 percent next year based on the Consumer Price Index.
Preliminary budget projections for the district include about $28.4 million in expenses for the 2015-16 school year.
Monroe's pupil count, excluding summer school enrollment, is expected to drop slightly next year to 2,426 from 2,440 this year, a .6 percent decrease.