Superintendent Dr. William Skilling reported a ‘financial hurricane? is going to hit in October when the state reduces its funding to all school districts by $240 per student, which translates into a $750,000 loss for Oxford.
More cuts are expected in December, which could push Oxford’s revenue loss to more than $1 million this year. Skilling called such cuts ‘unprecedented.?
‘Never in history have we had that much reduction from the state in one year,? he said.
Why are these cuts happening? ‘The amount of revenue the state anticipated is off the mark again,? Skilling explained.
But this year’s cuts are nothing compared to what the district is expected to face in the 2010-11 school year.
‘They’re telling us to plan on a $1,000 per student reduction,? said Skilling, noting that equals a $4.5 million loss for Oxford.
Add to that the $1.5 million in increased expenditures the district is projecting for the next school year and Skilling said ‘we’re now talking over $6 million? in potential deficit. ‘We’ve got to make up that difference in one year’s time,? he noted.
Even the district’s $5.3 million fund balance wouldn’t be enough to cover such a huge deficit.
‘And here’s the irony, we’ll have the record, all-time-highest fund balance in the history of this school district,? he said. ‘Yet, in one year, it’s conceivable that we’ll be totally wiped out and we would be in red deficit, if we did nothing.? ? CJC