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Olson expects $1M budget deficit
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MONROE - Monroe school district's budget deficit is getting closer to $1 million, a drop from last year's $1.8 million deficit.

"We're going to be right around that million dollar deficit, which is where we expected to be," said Ron Olson, the district's business manager.

He presented the updated preliminary 2014-15 budget at the school board meeting Monday.

The budget deficit is at $1.04 million, but Olson said he expects that to drop another $400,000 to $500,000 by the end of the year.

Student enrollment figures also came in since the last time Olson presented the budget. The pupil count from September is at 2,450 students, but Olson said it's hard to predict.

"You never know when you're going to see an unexplained growth or drop," he said. "People would be shocked, I think, to see how many fluctuations you see in a year."

The good news, he said, is the district won't have a declining enrollment exemption this year. And since enrollment bottomed out at 2,371 in 2011, the three-year average will see an increase.

He said it will be another two to three weeks before the final student counts are in.

Revenues also seem to be up compared to last year's actual revenues, Olson said, while the total cost of the district's funds "is going to be less than it was the last two years."

Olson predicted the total tax levy for 2014-15 will be $10,952,544, a 1.88 percent decrease over last year's $11,162,356 levy. The tax rate would be $11.03 per $1,000 of a home's value, compared to $11.24 last year. It's the lowest rate in the district in several years, Olson said.

With that rate, the owner of a $75,000 home would pay about $827 in school taxes. The owner of a $200,000 home would pay about $2,206.

The budget was calculated without valuation changes, but Olson said there will likely be a one to two point growth in values, which would help lower the tax rate.

But with the good news comes the bad: A decreasing general fund is unsustainable, Olson said, and the district will eventually have to consider a referendum or make some "serious reductions." He noted the state may have less to give in school aid in coming years, despite seeing an increase in state aid now.

Olson noted there will be changes between this preliminary budget and the final budget, including pupil count, state aid and property valuation, which affect the tax rate.

The almost $28.8 million preliminary operating budget will be presented at the district's annual meeting in October.