April 15, 2008
By NORMAN DRAPER, Star Tribune
Despite all the hubbub over financially pinched school districts shutting down schools, laying off teachers by the score or ravaging their rainy-day funds, some districts will weather this year in relatively good shape.
Certainly, it's a minority of Twin Cities school districts that won't have to trim expenses or raise fees to make ends meet. Still, a few -- including Fridley, Spring Lake Park, Columbia Heights and Anoka-Hennepin -- are managing to avoid such measures. That's the result of good luck, enough budget cuts in the past to tide them over this year, smart business moves or voter largesse.
The Fridley school district, for instance, expects to see 50 more students next year than in 2007-2008. Because the state issues funding on a per-pupil basis, that means an additional $250,000 for the district, said superintendent Mark Robertson.
Other things worked out well for Fridley. Initially, Fridley officials were expecting health insurance costs to rise 15 percent. But by concentrating on higher deductible payments as well as pursuing a wellness program that diminishes the risk of health problems, the district was able to keep health care costs from rising.
It also helped that district employees enjoyed generally good health, and filed no major claims.
"Part of it, I have to tell you, is good luck," Robertson said. "In the smaller districts, when there's an anomaly, and someone has a three-quarter-million-dollar [health insurance] claim, you're toast."
The district also saved money by outsourcing the job normally done by a staff business manager. But according to Robertson, this year is sort of the eye of the hurricane in a troubled education-spending period.
"Between the increased enrollment and the other, efficiency-type things, we kind of had a lull," he said. "Had we not gotten that, I would have had to make anywhere from a quarter-million to $450,000 in cuts."
Rising enrollment also benefitted Spring Lake Park schools. District superintendent Don Helmstetter said the district is anticipating between 30 to 50 more students next year. The infusion of state money those students will bring with them means the district can stay out of the red.
"We're one of the few districts in the metro areas that are growing," Helmstetter said. "That's enabled us to budget a neutral budget. Our revenues and expenses are going to be quite similar."
In the case of Columbia Heights, superintendent Kathy Kelly said the district is able to live within its means this year because of budget reductions made for the three years before this one.
The state's largest district -- Anoka-Hennepin schools -- owes its relatively healthy financial standing to voters, who last November approved $45 million-a-year levy renewal and increases for the next five years. But things could change, and the district could go back into budget-cutting mode for 2009-2010 without an influx of new money from the state.
"Next year it will depend on what the state decides to do," said district spokeswoman Mary Olson. "It will be a critical year. Based on what we know about the economy of the state so far, it's not likely that the state will provide enough money to make it through easily for 2009-2010."
Norman Draper • 612-673-4547