Enterprise Dispatch Blog

DASSEL-COKATO, MN - The 2009-10 budget was approved by the Dassel-Cokato School Board with an added deficit of $59,706 due to unanticipated Area Learning Center (ALC) expenses and adding two para professionals to the middle school.
At the start of Thursday’s meeting, it was noted that one of the personnel items (a part-time ALC teacher) would be deferred until discussion took place regarding the ALC’s  $59,739 budget deficit projected for 2009-10.

District Business Manager Tina Palmer presented a revised budget for 2009-10 that included an additional shortfall of $59,706, for a total deficit of $421,329.
Palmer explained there were two additional part-time para educators added to the middle school based on needs, which totalled $26,106.
The district’s general fund revenue was reduced by $46,113 based on current student projection at the ALC, which is lower than originally budgeted, according to Palmer.
To reduce the ALC expenditures, the district cut $12,513 from its budget, mainly in supplies and textbooks.
Palmer noted the majority of the ALC expenses remain due to personnel.
“The district is being conservative, using a revenue budget based on the number of students enrolled in the current school year,” Palmer said following the meeting.
ALC Director Jon Nelson told the board that the district needs to get more students in the program, and to do that, it needs to build the best possible program.
If five more students enroll this coming school year, the deficit will be eliminated, Palmer said.
Last school year, a science instructor was teaching math part time at the ALC, and Nelson said he thinks having a math instructor teach math would be beneficial to student enrollment.
The administration recommended the district hire David Pennertz as .75 full time equivalent math instructor for the ALC, sharing that time with the high school.
Palmer explained that the added position does not increase expenditures, since it’s replacing an existing position that will be shifted to the high school.
Superintendent Jeff Powers added that in March, the board can re-examine the ALC enrollment and make the necessary decisions then.
It was also noted that enrollment of the ALC tends to  grow throughout the year as some high school students get behind and need to make up credits at the ALC.
The board approved this personnel item along with the budget and will revisit the ALC situation in the spring.
Because there are two years of flat funding from the state, “we are making a choice to deficit spend and we have a general fund reserve that allows us to do that,” Powers said.
He added it’s just like having a savings account and by using it, it allows the district to maintain strong programs without cutting.
Capital budget
Powers discussed the capital budget for projects in 2009-10, which totalled $883,613.
It was noted that capital projects have a separate account from the general fund and monies coming in are specific to each fund.
The district has a large capital reserve, which allows the district to continue to improve and maintain its facilities despite the tough financial times, Powers said following the meeting.
The board approved the capital budget with the idea that administration can add projects as necessary based on district needs.
Funding deferral
Palmer informed the board of a tax shift by the state for fiscal year 2010 (starting July 1) and fiscal year 2011 (starting July 1, 2010).
The last  tax shift was a 90/10 split in which 90 percent of state tax revenue would come into the district the first fiscal year and the remaining 10 percent the following fiscal year.
Currently, there is a 73/27 split, where the district will receive only 73 percent of revenue starting fiscal year 2010 and the remaining 27 percent next fiscal year.
This is the biggest shift the district has seen, Palmer said.
Deferrals can create cash flow issues for districts, Powers noted.
But despite the deferrals, the district will be able to maintain with a positive cash flow, Powers said.
In other business
The board approved the following items:
• the sale of the vocational house for $29,750 to Larry Hendrickson of Kingston. The total cost of the project was approximately $30,000. Powers told the board the district has taken a slight loss for the past few years, but with the state of the housing market, he doesn’t see it as an issue.
• the 2009-10 graduation date and time for Sunday, June 6 at 2 p.m.
• attendance reports given by each of the school’s principals.
• the health and safety performance criteria as required by the department of education.
In personnel items, the board approved the following:
• the employments of Richie Dahlberg as a high school FOCUS program EBD teacher, Kristin Ferris as middle school family and consumer science teachers, Christine Lawyer as long-term substitute for licensed school nurse for 2009-10 school year, Vincent Pokornowski as .75 full time equivalent development adaptive physical education (DAPE) instructor for 2009-10 school year, Laura Zaske as first grade instructor of Cokato Elementary, and Gwen Rien as part-time paraeducator for special needs at Dassel Elementary.
• the retirement of Loris VanHorn as Title I paraeducator at Dassel Elementary, and the resignation of Lindsey Bessingpas as head gymnastics coach.
• the extended employment of Jennifer Borg as high school guidance administrative secretary for 2009-10, and the assignment of Lawrence Marquette as assistant FFA advisor.
• the approval of lane change for Karley Silverberg and Brian Westby, and a 12-week family medical leave of absence for Valerie Impola from Sept. 23 to Dec. 16.
• the transportation contracts for Luhman and Volness.