MAPS facing budget woes

By MIRIAM MOELLER, Journal Staff Writer
MARQUETTE — While cuts are not expected for Marquette Area Public Schools during the 2008-09 school year, the district’s long-term financial future looks gloomy as it faces declining enrollment and revenue.


The MAPS school board met Monday for a budget work session, discussing the financial outlook for the district for the coming school year.


“Our revenue is actually decreasing and the reason is enrollment,” Tim Yeadon, assistant superintendent for finance, told the board. “Salary and benefits — that’s what’s making our expenditures increase.”


For 2008-09, $27.3 million in revenues and $30.6 million in expenditures are projected. This would leave the district with a shortfall of $3.3 million, which will be covered by $2.1 million from the district’s fund balance and $1.2 million from the district’s contingency fund. These projections will leave the district with no fund balance and a contingency fund of $1.7 million at the end of next year, according to Yeadon.


By the 2009-10 school year, Yeadon said the district will have used up its contingency funds.


Because of that, the district may not be able to be support some programs over the long term, Yeadon said.


“Given the facts, we have problems,”


Board President Al Hawker said changes are on the horizon.


“The next two or three years don’t look particularly good,” Hawker said. “Obviously we’re going to have to make some cuts and adjustments.”


The district’s capital projects fund should still have about $2.8 million in it by 2009-10, Yeadon said.


“There is still money sitting there, but it is also earmarked for projects in the district.”


MAPS is projecting the loss of another 133 students next school year, while per-pupil state funding is projected to increase by $100 to $7,304 per student, Yeadon said. Currently, the district spends more than $8,000 per student.


Total district enrollment in September was 3,308 students. This September that number is expected to decrease to 3,175 students.


“The major impact is from declining enrollment,” Superintendent Jon Hartwig said. “Across the whole region, that’s what we’re struggling with.”


MAPS is planning on five staff retirements next school year — positions which the district plans to replace — as well as one reduction of a counselor position at Marquette Senior High School.


“The staffing may change, but it won’t dramatically change the bottom line,” Yeadon said.


The district also expects to receive less funding from the Marquette-Alger Regional Educational Service Agency, due to reductions in MARESA’s Medicaid income, interest income and insurance reimbursements, Yeadon said.


Rising food prices were also discussed at the work session, which may result in an increase of student lunch prices next year, Yeadon said.


MAPS is holding its 2008-09 budget hearing on June 23. The budget has to be adopted before July 1.