Schools hope to stave off big budget cuts

Despite a continuing struggle with declining enrollment and unfunded federal and state mandates, Spokane Public Schools has no plans for major layoffs or cuts in programs next year.

A preliminary 2006-2007 budget proposal unveiled for school board members last week shows the district could be facing a shortfall of $7.7 million. But a $3 million gamble and a dip into savings will allow the district to compensate for the gap.

“That doesn’t mean there are no cuts. Always in a system of our size, there will be fine-tuning and adjustments,” said Mark Anderson, associate superintendent for school support services.

The district experienced three years of major cuts beginning in 2002. Last year the district was able to use savings to prevent additional cuts, as is the case for 2006-2007.

“But if nothing changes in the Legislature, we’re going to have to ‘right-size’ with further major reductions next (budget) year,” Anderson said.

Estimated general fund revenues for next year total about $279 million, while expenditures are estimated to be $283.7 million.

Those figures leave no room for surprises; $3 million had been budgeted for contingencies, and it’s a gamble to cut it out, staff acknowledges. The $4.7 million difference between income and spending will be made up with money from savings.

The public will have a chance to hear a presentation and comment on the budget plan tonight and Thursday.

Superintendent Brian Benzel will make a preliminary budget recommendation to the school board on June 14. A recommended budget will be available to the public July 10, with final adoption set for Aug. 9.

Major issues next year include a continuing shortage of state funding for special education and the district’s declining student population.

“The fundamental gap we are dealing with is the mandates the state is placing on us and the revenues to meet those demands continue to go down,” Benzel said. “It’s wreaking havoc.”

The district expects to have 522 fewer students next year, which means a $2.4 million cut in state revenue, or $4,500 a student.

“That’s a school,” Anderson said.

Smaller enrollment also means the district will collect fewer levy dollars from local taxpayers because the smaller numbers lower the district’s legal levy capacity. Voters approved a $50 million levy in March.

Also at issue is funding for special education. State guidelines say a district can receive money for special-education students up to 12 percent of its total enrollment.

But in Spokane, the special-ed population exceeds that cap. Next year, the district could fall about $10 million short of the money it needs to serve all those children, district officials said.

The district, along with several other school districts in the state, is embroiled in a lawsuit with the state over the issue. The case is expected to go before a judge in November.

Because of the special-ed funding shortfall, the Spokane district expects to use about $9.8 million of voter-approved levy money next school year to offset the costs not covered by the state. That’s up from $5.9 million this school year.

“More and more of our kids have special needs,” Benzel said. “We have 65 to 70 students that the state just walks away from.”

Next year the district is planning for a $700,000 increase in special-education funding from the state, but federal dollars will go down $900,000.

The district also must come up with $2.3 million in wage and benefit increases.

The district also has budgeted $600,000 for custodians, secretaries, heating, lights and other fixed costs associated with three new elementary schools. Lincoln Heights, Ridgeview and Lidgerwood elementary schools will be completed this summer.