A presentation of the 2016-17 proposed final budget by the district’s business manager on May 9 showed a $645,169 deficit for the Hamburg Area School District, but officials were confident the budget would be balanced by the mandatory June approval date.
“We’ve taken a conservative, prudent approach and I don’t believe we’ll end up with a deficit,” business manager Michele Zimmerman said. “There is no need to reduce staff or cut programs.”
The proposed final budget has expenditures totaling $40,432,255 and revenue of $39,787,086 and does not include an increase in the state’s basic education subsidy.
The district could receive an increase up to $265,000 in revenue if the state budget goes through, according to Zimmerman.”2015-16 was a tumultuous year for the state budget and that has continued into 2016-17,” Zimmerman said. “The numbers continue to change.”
For the past seven years the district has raised property taxes by .25 mills or about 1 percent and proposes to continue with that strategy.
A .25 mill bump would increase the property tax rate to 26.71 mills. A property assessed at $100,000 would cost the owner $2,671 in property taxes, an increase of $25.
Some of the big drivers on the expenditures side of the ledger include retirement contributions, medical insurance rates, charter school tuition and contractual increases to salaries.
Salaries and benefits are fixed costs and account for 67 percent of the total budget, according to Zimmerman.
Retirement contributions have soared to a rate of 30.03 percent which resulted in a net increase of $466,000 or 16 percent. The current rate is 25.8 percent.
“If there is a bright side, the double digit increases are done (after this budget),” Zimmerman said. “The next three years project to 7, 4 and 3 percent.”
The budgeted increase in medical insurance rates is $314,000 or 8.5 percent.
Charter school enrollments continue to rise and the budgeted increase is $244,000.
“I don’t know how many are going to leave,” Superintendent Dr. Richard Mextorf said. “But we can only get them back one at a time. Through face-to-face meetings.”
Zimmerman reported that for the past nine years that the district has ended the year with a financial surplus. The district’s fund balance stands at $13,739,694.
“I’m confident that we won’t end with a deficit,” Zimmerman said. “I feel good based on our history. We’re always looking to be more efficient and we’ll keep working to close the gap.”
School directors will vote on May 23 to approve the proposed final budget. Final budget approval will be done at one of the June meetings.
