The annual economic forecast for Montezuma-Cortez Re-1 schools has improved slightly since June, but officials still predict a $600,000-plus budget shortfall at the end of the fiscal year.<\/p>\n
In June, school leaders projected a deficit of nearly $776,000 for the fiscal year. Due in part to unexpected state funding and a decision not to fill vacated positions, the district\u2019s revised budget deficit is now under $633,000, a decline of about 18 percent.<\/p>\n
School officials unanimously adopted a revised version of its current fiscal budget on Tuesday, Jan. 27. In June, the district\u2019s general operating fund was forecast at $17,808,327. According to the revised budget, general fund operating costs are now projected to total $17,321,927, a decline of almost 3 percent.<\/p>\n
Re-1 Superintendent Alex Carter said the revised budget was a cause for celebration because the district \u201cdidn\u2019t go further into the hole.\u201d<\/p>\n
\u201cI believe the darkest days of our budget are behind us,\u201d he said.<\/p>\n
Carter said he is confident the budget will meet status quo expectations starting next school year, but cautioned that he wouldn\u2019t be satisfied with current funding levels. Carter believes additional revenue is paramount \u2013 either new revenue from the state legislature or a mill levy override on local property taxes.<\/p>\n
\u201cWe must develop a plan to move forward,\u201d said Carter. \u201cWe need a new revenue stream.\u201d<\/p>\n
One large and unpredictable drain on the district\u2019s finances is its Risk-Related Activity Fund, which pays for employee health care. The district\u2019s total revised appropriations for its self-insurance program totals almost $3.2 million, up more than 6 percent from June\u2019s forecast of $3 million.<\/p>\n
Re-1 Human Resources Director Dan Porter told board members last week that employee health-care funding concerns had improved, but things were \u201cstill not good.\u201d He added the district\u2019s focus on minimizing employee health-care costs wasn\u2019t sustainable.<\/p>\n
\u201cAt some point as a district, I think we will need to talk about wellness plans,\u201d said Porter. \u201cThe wellness plans that actually work cost money, and we don\u2019t have the money right now.\u201d<\/p>\n
In an interview earlier this week, Carter said transportation was the \u201cgreatest fiscal cliff\u201d the district faces. The revised Capital Reserve Projects Fund totals more than $1.1 million, but no allocations are forecast to update the district\u2019s deteriorating bus line within the next four years.<\/p>\n
Carter said the district operates 20 routes with 22 buses, and added that the district\u2019s oldest bus, which officials call Rusty, has more than a half-million miles. The revised $1 million Transportation Fund allocations include $3,500 for repairs and maintenance services, nearly $70,000 for mechanic salaries, $205,000 for fuel and more than $308,000 for bus driver salaries.<\/p>\n
In preparing the revised budget, Re-1 finance director Wendy Everett announced changes to the document to meet state transparency guidelines. Officials said the revised 65-page format is easier to understand and analyze than the previously adopted 77-page budget from June.<\/p>\n
To view the entire Re-1 revised budget, visit http:\/\/bit.ly\/Re-1Budget<\/p>\n