Board confronts bad budget news

Published 9:00 pm Monday, December 8, 2003

MARYSVILLE — Page by page, at times line by line, the Marysville School Board confronted a depressing reality Monday night, unraveling the district’s depleted budget.

Down about 500 students from last year, the board and its three new members got a glimpse of what a $2 million shortfall looks like.

"I think our path is clear," new board member Michael Kundu said at one point during a study session. "We need to find a way to whittle down this budget."

"As far away from the classroom as possible," interjected Carol Jason, another new board member.

"Exactly," Kundu said.

The board adopted a $82.25 million budget in August.

That was before the fallout from the longest teachers strike in state history, a 49-day walkout that ended Oct. 20 when a judge ordered them back to the classroom.

The sour economy and strike-weary parents deciding to send their children elsewhere took a toll. Enrollment plummeted and revenues, which are closely tied to student counts, fell with it. Districts receive about $5,200 for each full-time student, according to the state Superintendent of Public Instruction’s office.

Before the school year started, the district projected a loss of what would be the equivalent 176 students. The district now believes it has lost 496 students for the school year.

Its head count is about 11,200 full- and part-time students, which equates to 10,900 full-time students. However, based on history, including some students dropping out of school before June, the district is projecting an average of 10,580 students for the year.

Particularly hard hit was the district’s vocational education program, which lost about 50 full-time students.

Carol Davis, the district’s executive director for vocational education, outlined more than $245,000 in cuts that could be made. Of that figure, about $140,000 would come from non-employee costs, such as reductions in equipment, textbooks, field trips, materials and supplies.

The remainder — in the $110,000 range — would come from classified employees, particularly educational assistants who help in the classroom.

The cumulative loss would be large if the school loses eight more educational assistants, said Matt Withee, a social studies teacher at Marysville-Pilchuck High School.

He said the aides collectively have more than 120 years experience.

"Not only is this a terrible disruption to each of the classrooms and departments in which they work, but it has a ripple effect throughout the district schools," he said in a letter to the school board. "…The loss of experienced people is particularly devastating. Additionally, these people will now be working in unfamiliar jobs, creating further inefficiency."

The board also learned about how its reserve had been growing in recent years. It hit a low of 1 percent in 2001 and rose to 3.6 percent in 2002. At the beginning of this school year, it reached 5.1 percent with a $4.1 million cushion.

Keith Lowry, a consultant hired to review Marysville’s year-end finances, said many school finance experts believe districts should maintain reserves of 4 percent to 8 percent.

"Given the decline in district enrollment, and assuming that other revenue estimates remain stable, expenditures will have to be reduced from the budgeted amounts in order to avoid an unreasonably low and financially precarious ending fund balance," Lowry told the board.

Midyear cuts are difficult. Teachers are offered yearlong contracts and can’t be let go midyear.

Jim Baker, the district’s finance director, said the district could expect to have a $1.53 million year-end fund balance under its current budget and that would be with no raises for any employees.

He provided the board with packets containing more than 50 pages of financial history and analysis. It made no recommendations.

The task of figuring out what to do next will unfold in the weeks ahead.

"Hopefully over the next month, this gives us a chance to see exactly where we are," Baker said. "It will take another several weeks to talk about each of the programs, and then the board will give us direction for what we are going to do for the rest of the school year."

Reporter Eric Stevick: 425-339-3446 or stevick@heraldnet.com.