Despite a projected $265 per pupil funding increase next year, the 2015-16 budget for Montezuma-Cortez Re-1 schools is again forecast to be underfunded at the state level.
Determined by School Finance Bill SB15-267, total state funding for next year’s projected budget is set at more than $18.9 million, said Re-1 finance director Wendy Everett. At full funding, the district should receive an additional $2.6 million, which was cut by state legislators because of the negative factor, she said.
“Full funding for Montezuma Cortez is $21,578,895,” said Everett.
The proposed budget, released on May 19, projects more than $18.2 million in general fund expenditures next year, an increase of 6.3 percent, or $1,078,926, over the current fiscal year. Forecast at more than $48 million, total appropriations for 2015-16 include more than $12.3 million for capital projects, $3.4 million for risk-related activities and more than $1.4 million for bond redemption funding. District officials are scheduled to formally adopt the proposed budget on June 30.
The Cortez Journal requested a budget interview with Everett on June 2. Everett canceled a scheduled June 5 meeting because of illness. The Journal subsequently agreed to email budget questions to Everett. She replied on Friday, June 12, just before 5 p.m.
In examining the proposed budget, the Journal identified at least two mathematical errors. On Page 5 of the 63-page document, for example, total actual audited expenditures for fiscal year 2013/14 was listed at $16,764,825. Journal calculations reveal the line item totaled $16,714,825, a difference of $50,000.
Everett said the financial document was a proposed budget, subject to change.
“The important numbers are the actual audited as this paints the picture of actual expenditures,” said Everett. “A budget is an estimation.”
Property taxes
According to budget forecasts, property tax collections are projected to increase for the Re-1 district, rising from $11.2 million to $11.9 million, or by 5.7 percent, over last year’s amount. Everett deferred to the Montezuma County Tax Assessor’s Office for an explanation.
Financial transparency
Omitting employee wages and benefits, each school across the district is forecast to see slight increases in budgetary spending over last year. Everett attributed the upward ticks to new state transparency accounting guidelines. She said prior expenses for custodians, health services along with curriculum and technology support, for example, had all been reallocated to respective school sites.
“The services at each school will remain the same,” said Everett.
“Due to these changes it is misleading to compare prior budget years to this year,” she said.
Utility costs
Despite proactive steps by students and staff to reduce the district’s energy cost by nearly a quarter in recent years, the proposed budget calls for an almost 11 percent increase in utility costs next year.
Kinder Morgan dispute
Despite a recent court ruling against Kinder Morgan in a county tax dispute, which effectively keeps the district from returning some $1 million to county coffers, Everett said the court’s decision wouldn’t impact next year’s budget.
Civil penalties
Also asked to comment on a new law that enables civil action against school districts in cases of school violence and its possible budgetary impacts, Everett said the district hadn’t been informed of any insurance rate increases.
To view the entire budget proposal, visit bit.ly/2015-16budget.
