GWINN – The Gwinn Board of Education passed a budget last week for next school year, reflecting new expenditures, reductions and changes in the coming year, including the reopening of Gilbert Elementary School and the addition of incoming Superintendent Tom Jayne.

The final general fund balance decided at the board’s regular meeting June 22 for this school year, which ends Tuesday, is $675,500, about $91,000 less than the final fund balance in June 2014.

The projected general fund balance for June 2016 is $376,000, with fund expenditures due to rise by a net $299,000.

Cost projections do not include the passage of the bond proposal, which will go before voters Aug. 2, said Acting Superintendent Karen Anderson, whose employment with Gwinn Area Community Schools concluded Monday.

The board passed a motion June 8 to retroactively approve technology materials under the bond, she added.

“We cannot budget anything to be covered under the bond until the election,” Anderson said. “So about $85,000 of these expenses would be covered by the bond or sinking fund if it’s approved because of that board action on June 8.”

The bond passage will be critical to the ongoing financial health of the district, Anderson said.

“The board and employees and some of the community members are working hard on the marketing,” Anderson said. “It’s important to the district, and I wish them well.”

Basic programing expenditures are set to rise because of increased insurance caps, Gilbert technology updates, three additional Gilbert teachers and Gwinn Educational Support Personnel Association contract salary increases. Other new costs include an increased salary for the new superintendent at $112,500, operation and maintenance increases largely due to reopening Gilbert, Teamster contract increases and district-wide technology upgrades.

Expenditure reductions include the elimination of four paraprofessionals, resignation of the high school principal, decreased acting superintendent contract and the transportation supervisor’s leave of absence.

A state Foundation allowance increase of $181 per pupil will help offset some expenditures as well. Anderson said half that, the additional $91 per pupil in at-risk funds, could cover the cost of Gilbert’s three new teachers.

Enrollment was projected to decline by about 50 students, but the latest counts show an increase of about five students, Anderson said, adding there is a lot of movement throughout the summer and counts won’t be final until September. But because GACS uses a three-year average of the student count to receive funds, the number used for state funding will be very similar to last year’s number, about 1,076 students, she said.

“(The projected decline) was one of the reasons they chose to reopen Gilbert, saying that that was going to bring students back into the district,” Anderson said. “So rather than looking at a decline, they’re looking at maintaining, which is in essence an increase from what the consultant projected.”

Last week the board approved the administrative restructuring recommended on June 8, which involves eliminating the position of special programs director, redistributing her duties among other administrators and adding one principal to serve Gilbert Elementary School, among other changes. The restructuring is expected to save the district approximately $23,000.

But that restructuring is subject to more changes since GACS received a letter of resignation Thursday from Middle School Principal Jackie Cole, who is taking a position as a teacher in another school district, Anderson said.

This leaves three administrative positions to be filled, since High School Principal Kevin Luokkala, who has served the district since 1997, will also be leaving effective today to become the superintendent and principal of Republic-Michigamme schools.

Former Special Programs Director Beth Bond submitted her resignation, which was accepted at Monday’s meeting, and announced she has accepted a new administrative position at a school downstate.

Wednesday will be Jayne’s first day in the office, Anderson said.

“Tom and I worked together here in the Gwinn district in the early 2000’s, so we know each other and we’ve been in contact regularly throughout my three months here,” Anderson said. “I’ve copied him on all important emails with the staff and board, … so he won’t be coming in cold by any means and he knows most of the employees already.”

Anderson, who retired as CEO of North Star Academy in Marquette Township at the end of March, said she is not ready to be done working, though she doesn’t have plans as yet.

“I just appreciate that the board trusted me with this challenge and I think we accomplished quite a lot in the three-month period,” Anderson said.

The board also approved the district’s proposed State Aid Note. This allows the school to address a timing discrepancy and borrow money that is then paid off the same year with Foundation allowance funds when they are disbursed by the state.

Mary Wardell can be reached at 906-228-2500, ext. 248.