A little more work at the beginning should lead to better results at the end.
The 2003-2004 ‘major funds? budget for Clarkston Community Schools now shows a savings of more than $615,000 than originally anticipated, thanks to what officials call a more accurate estimate of employee fringe benefits.
The board of education on Monday approved a ‘revised original budget? with $64.3 million in spending, compared with the $64.9 million approved in the original budget last month.
‘This is not a budget amendment,? according to Bruce Beamer, executive director of business and financial services. ‘This is a revision of our original budget.?
Revenue is still anticipated at $65.2 million for the new fiscal year, which began July 1.
In previous years, and in the original 2003-2004 budget, the administration estimated costs of employee health coverage, Social Security and retirement benefits as a lump sum under the line item, ‘business support.? At the end of the year, a budget amendment placed real costs in the various department budgets.
‘We have distributed that in advance by function,? Beamer said. ‘It’s going to be a very good picture at the start of the year.?
The reduction in anticipated spending came because some departments apparently had attempted to estimate employee fringe benefits in their beginning budget, while others did not.
Board Secretary Stephen Hyer said the new accounting method will help the people closer to the spending.
‘This should help our budget managers at the site level to manage their own budgets,? Hyer said, ‘because right now at the end of the year they get hit with their FICA and retirement costs. Sometimes that throws a wrench in the equation.?
In addition, the new method will better track other accounts. For example, Hyer said, ‘This budget more accurately portrays how much special education really costs the district. In our previous accounting method, it looked like special ed was a money maker.?
The revised budget increases the anticipated end-of-year fund balance from $8,345,121 to $8,960,729. Officials have previously said they are working to increase the district’s fund balance to 15 percent of the total budget.
In another budget-related move, the board approved nine additions to the instructional staff. All but one were to fill previous vacancies or replace departing personnel. The new position, a first grade teacher, was motivated by increased enrollment.
There is potential for additional new teachers because of increased enrollment, but Superintendent Al Roberts said those hires will not come until the need is more certain.
‘We’re doing pretty good at not adding [teachers] until we know what the numbers are,? Roberts said.