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.
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’s revised budget deficit is now under $633,000, a decline of about 18 percent.
School officials unanimously adopted a revised version of its current fiscal budget on Tuesday, Jan. 27. In June, the district’s 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.
Re-1 Superintendent Alex Carter said the revised budget was a cause for celebration because the district “didn’t go further into the hole.”
“I believe the darkest days of our budget are behind us,” he said.
Carter said he is confident the budget will meet status quo expectations starting next school year, but cautioned that he wouldn’t be satisfied with current funding levels. Carter believes additional revenue is paramount – either new revenue from the state legislature or a mill levy override on local property taxes.
“We must develop a plan to move forward,” said Carter. “We need a new revenue stream.”
One large and unpredictable drain on the district’s finances is its Risk-Related Activity Fund, which pays for employee health care. The district’s total revised appropriations for its self-insurance program totals almost $3.2 million, up more than 6 percent from June’s forecast of $3 million.
Re-1 Human Resources Director Dan Porter told board members last week that employee health-care funding concerns had improved, but things were “still not good.” He added the district’s focus on minimizing employee health-care costs wasn’t sustainable.
“At some point as a district, I think we will need to talk about wellness plans,” said Porter. “The wellness plans that actually work cost money, and we don’t have the money right now.”
In an interview earlier this week, Carter said transportation was the “greatest fiscal cliff” the district faces. The revised Capital Reserve Projects Fund totals more than $1.1 million, but no allocations are forecast to update the district’s deteriorating bus line within the next four years.
Carter said the district operates 20 routes with 22 buses, and added that the district’s 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.
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.
To view the entire Re-1 revised budget, visit http://bit.ly/Re-1Budget
