MONROE - Monroe school district's budget could show a deficit of less than $1 million next year, a drop from this year's $1.8 million deficit budget.
Ron Olson, the district's business manager, presented the initial 2014-15 budget at the school board meeting Monday as a first-look at next year's spending plan. The district will continue to refine the budget through the summer as more information becomes available; the final budget will be approved at the district's annual meeting in October.
The preliminary budget shows the district operating at a deficit of about $1.2 million next year. However, Olson said he believes the district should be able to reduce that deficit to less than $1 million by September.
That amount of deficit will cut the district's fund balance to $6 million, from about $7.3 million this year.
Olson said the district knows "we cannot run with a deficit budget forever." While he does not foresee any layoffs in the coming year, beyond that, the district may need to consider reductions or a referendum to maintain services, he said.
Enrollment in the district is expected to increase next year, helping to improve the district's revenue side. The budget includes an estimate of 2,483 students enrolled in the district next fall, an increase from this year's 2,468. That's a high point since enrollment bottomed out at 2,371 in 2011, Olson said.
Using that enrollment figure, Olson predicted the total tax levy for 2014-15 will be $11,441,725, or a 2.5 percent increase over this year's levy of $11,162,356. The tax rate would be $11.52 per $1,000 of a home's value, compared to $11,24 this year, also an increase of 2.5 percent. That translates to a tax bill of $864 for school purposes for the owner of a $75,000 home, compared to $843 this year. The owner of a $200,000 home would pay $2,304 in school taxes, compared to $2,248 this year.
The budget was calculated presuming no change in valuation within the district. But "we've probably seen some growth in values," Olson said, and any increases in valuation will help lower the tax rate.
Ron Olson, the district's business manager, presented the initial 2014-15 budget at the school board meeting Monday as a first-look at next year's spending plan. The district will continue to refine the budget through the summer as more information becomes available; the final budget will be approved at the district's annual meeting in October.
The preliminary budget shows the district operating at a deficit of about $1.2 million next year. However, Olson said he believes the district should be able to reduce that deficit to less than $1 million by September.
That amount of deficit will cut the district's fund balance to $6 million, from about $7.3 million this year.
Olson said the district knows "we cannot run with a deficit budget forever." While he does not foresee any layoffs in the coming year, beyond that, the district may need to consider reductions or a referendum to maintain services, he said.
Enrollment in the district is expected to increase next year, helping to improve the district's revenue side. The budget includes an estimate of 2,483 students enrolled in the district next fall, an increase from this year's 2,468. That's a high point since enrollment bottomed out at 2,371 in 2011, Olson said.
Using that enrollment figure, Olson predicted the total tax levy for 2014-15 will be $11,441,725, or a 2.5 percent increase over this year's levy of $11,162,356. The tax rate would be $11.52 per $1,000 of a home's value, compared to $11,24 this year, also an increase of 2.5 percent. That translates to a tax bill of $864 for school purposes for the owner of a $75,000 home, compared to $843 this year. The owner of a $200,000 home would pay $2,304 in school taxes, compared to $2,248 this year.
The budget was calculated presuming no change in valuation within the district. But "we've probably seen some growth in values," Olson said, and any increases in valuation will help lower the tax rate.