District still expects to spend more than it takes in
Both revenues and costs in this school year’s budget were slightly lower than projected when the Osseo School Board made midyear budget adjustments Feb. 19.
The net change to the general operating and transportation budget was nearly $1.3 million in the district’s favor. But the general fund will still operate at a deficit in fiscal year 2013, which ends June 30.
Revenue calculations for the general operating budget were down $179,825, or .09 percent compared to projections. Expenses were down $1,477,080.
The decrease in revenue was primarily due to a decrease in the number of former employees paying to participate in the COBRA insurance coverage the district is obligated to provide. But the reduction in payments for COBRA coverage was matched by a reduction in expenses, resulting in no net change.
A decrease in special education aid calculations and a tax shift resulted in a revenue decrease of about $760,000. That was offset by an increase of about $1.8 million in state aid because actual enrollment was higher than projected. Increased revenue in other categories added approximately $250,000 more in revenue.
Regarding expenses, the cost of employee benefits decreased, but salaries increased by a little more that $300,000. The cost of supplies went down almost $600,000, partly due to the mild winter, but the costs for purchased services increased by almost $800,000.
Overall, the midyear budget adjustment is a positive change of $1,297,255 in the general operating budget. In other words, the budget is expected to operate at a deficit of about $7.6 million instead of about $8.8 million.
The food service budget had a net positive change of $352,386.
The community education budget had a net negative change of $254,340.
The capital expenditures budget had a net negative change of $72,363.
The debt service fund had an increase of $88,026 in revenue because the district sold the Bather property on 73rd Avenue in Maple Grove in September.