Bigfork schools face budget shortfall

The Bigfork School District is looking at its biggest deficit in recent memory for its 2010-2011 budget – a shortfall of approximately $297,000.

"In my 21 years here, I have not seen a deficit this size," Eda Taylor, the district's business manager, told the school board last week, saying that in future years it may only be worse.

As a result, she said that shortfall couldn't be made up by making many minor cuts. It will likely require major changes, Taylor said.

"The bottom line is there will be program and staff changes," board chair Maureen Averill said.

The district received budget numbers from the Montana Office of Public Instruction at the beginning of the month. Those show an increase of approximately $49,000 in the projected elementary school budget and a decrease of $89,000 in the high school budget.

But, with additional expenditures expected for the 2010-2011 school year, including contractual staff pay increases and liability insurance increases, the deficits will be much higher.

The elementary school will be facing a deficit of approximately $135,000 and the high school a deficit or $162,000. The biggest shortfall Averill could remember was a $70,000 deficit at the high school.

Most schools in the state are facing similar and worse budget situations. Kalispell schools are facing a much larger deficit of $820,000 between the town's elementary, middle and high schools.

But unlike their peers in Kalispell, the Bigfork trustees at this point aren't even considering a levy as a possibility to recoup the needed funds.

"At this time, I don't see any interest on the board for a levy," Superintendent Russ Kinzer said.

Averill expressed that sentiment at the March 10 board meeting.

"It would not be my desire to do that (levy)," Averill said. "I think it would fail badly in this economy."

SOLVING THE DEFICIT

As a result, for the first time, at least since Kinzer's been in Bigfork, the district is offering early retirement incentive agreements to its certified teachers and non-certified staff. District officials hope those who opt out will help with the reduction in costs. Approximately 21 certified teachers are eligible for the early out as are eight support staff.

Certified teachers with the Bigfork Area Education Association qualify for the early retirement program if they have given no less than 10 years service to the district or are eligible for retirement with the Montana Teachers' Retirement System. In return, the teachers will receive a payment of $7,000, plus any accumulated and unused sick leave.

Employees with the Bigfork Unified Classified qualify if they have been employed for no less than 19 years with the district. These employees will receive a payment of $6,000. The agreements, approved by each association, took about a month to work out, Kinzer said.

Teachers and staff opting to take the early out are required to submit their resignations by no later than 4 p.m. March 26. Until then, district officials won't have a firm idea what cuts may be before the board.

Another precaution the district has taken already this year, and has for the past at least five years, is sending notification of termination to all non-tenured staff, this year 19 total. A teacher is eligible for tenure after three years with the district. The board approved these terminations in its consent agenda this month. In the past, all for the most part have been rehired, and usually to the same position, Kinzer said.

"It's been a standard practice in case the legislature doesn't allocate enough funds," Kinzer said.

That may not be the case this year. While the district hasn't had to "pull the trigger" often in the past, "this time we will be," Averill said.

REASONS FOR THE CRUNCH

The reason for the deficits across the state are partly due to declines in state funding, but also a result of declining enrollment.

In Bigfork, the high school population has continued to decline, but the elementary has appeared to stabilize and even went up slightly over last year. The high school's average enrollment sat around 309 last school year and dropped to 285 this year. The elementary school enrollment went up from 468 to 482.

The trend becomes more apparent over time. Ten years ago, the enrollments for the high school and elementary school were 377 and 550, respectively. Kinzer said he did an enrollment projection study based on the 2000 census a few years back and found that the primary reason for the decline was simply a decline in school-age children nationally and statewide. The census also showed, he said, that that population would begin to increase around 2015. With the elementary school population increasing, that trend may have started sooner than expected. Kindergarten classes have grown by about 10 students for the past few years.

Economics could also be a factor. For those who work in Kalispell, the commute may be too costly and that may account for some relocation, Kinzer said.

Stimulus money schools had last year has also gone away. Kinzer said Bigfork schools used those funds for temporary programs or staff and none required continued financial obligations.

"We knew that was going away," Kinzer said.

Discussions about more specific ways to tackle the deficit through program and staff cuts will likely occur in April board meetings, Kinzer said. There may also be a board workshop in the budget.