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Burnsville surplus an exception to projected deficits

Fewer teachers, more expensive activity fees and depleted savings are part of the upcoming school year's financial outlook for south metro school districts — and it could get worse.

In Lakeville, school leaders are freezing the 2008-09 budget, cutting anticipated staff and raising activity fees to make up for last year's failed levy referendum.

Also, the district is preparing to tackle a budget deficit for the 2009-10 school year.

In Inver Grove Heights, schools are banking on voters passing a $1.6 million levy renewal this fall to cushion a projected $2.8 million shortfall for the 2009-10 school year.

But Burnsville schools are expecting a $1.5 million budget surplus for 2008-09 from a successful levy referendum. It will help offset a projected deficit the following year.

"We're very fortunate because we passed our levy referendum. It didn't pass by much — but it passed," said Mark Stotts, business manager for the Burnsville district.

Lakeville schools weren't as lucky.

Voters last fall rejected a new levy that would have generated $5.6 million a year for 10 years. But voters did approve a $7.1 million-per-year levy renewal.

To offset the missed revenue, the Lakeville school board on Tuesday approved a budget for the 2008-09 school year with increased activity fees and $1 million in staffing cuts.

The district also plans to take $250,000 a year for four years from its general fund to pay for technology improvements, which the rejected levy would have covered.

The district anticipates a negative balance of $977,997 in its general fund, which a budget surplus from last school year will offset. After that, the balance will be $6.6 million.

Budget cuts are likely to continue in the 2009-10 school year, said Mark Klett, director of finances for Lakeville schools. It's unclear how much of a deficit schools will face.

Lakeville school board members decided this month not to ask voters to approve new funding, partly because of the dire economy and voter sentiment, Klett said.

"The 2009-10 budget may not look so positive when it comes to services," Lakeville school board member Jim Skelly said Tuesday before approving the budget.

But Inver Grove Heights school leaders are taking the risk.

This month, the school board agreed to pursue renewing an expiring $1.6 million levy for another 10 years. But members refused to ask for any increase in funding — even if it means future budget slashing — because they don't want to jeopardize the renewal.

The district projects a $1.2 million shortfall for the 2009-10 school year. A failed levy would increase that deficit to $2.8 million.

More than $1 million in budget cuts in Inver Grove Heights last school year resulted in the loss of a handful of teacher positions.

A successful levy referendum last fall for Burnsville schools will result in an annual $6.7 million revenue boost to help reduce class sizes and fight a deficit, Stotts said.

Classes will be reduced by four students for elementary schools and by two students for secondary schools. The extra revenue also will allow for a $1.5 million surplus.

The district will not ask for additional levies in the fall.

Bao Ong contributed to this story.

Maricella Miranda can be reached at 651-228-5421.

http://www.twincities.com/education/ci_9695660