After talk of an unsustainable budget earlier this year, Helena Public Schools has passed a budget for the next fiscal year that shows signs of less growth than before.
The total budget for fiscal year 2019-2020 stands at just under $95 million. This is up $6.2 million from last year. However, the district saw a taxable valuation increase of 7.08% this year as well.Â
The fund taking the biggest cut is technology, with just under a half million less in funding. Janelle Mickelson, the district's business manager, said there was less tech money to reappropriate due to higher spending last year. She predicted in the next few years that the technology levy won't cover all of the expenses relative to that fund and suggested that the board of trustees begin discussing a potential levy. Mickelson also noted the district's building reserve levy will end in four years.
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The largest budget change was to the retirement fund. That fund increased by $2.2 million dollars in an effort to up the district's retirement incentive. Superintendent Tyler Ream said this is part of an effort to lower overall salary and benefit costs, which total 92% of the district's budget, through natural attrition. Teachers that can retire are often at the upper end of the district's pay scale. Ream said a better incentive to retire could conceivably yield double retirement. This is all part of the district's efforts to look at their overall pay structure over the next school year alongside the Helena Education Association. This will be the first time in 16 years the pay structure has been reevaluated.
"This is literally just step one," Ream said.Â
The district is also shifting further towards putting weight on its healthy elementary district as it loses high school students to East Helena. Ream said the district pushed as much weight from centralized services to the elementary budget as possible. The district has always been split-funded like this with both an elementary and high school district with their own individual budgets. Ream said this split has been approximately 60/40 leaning towards elementary in the past. However, the loss of high school students and the growth of elementary students has shifted to an approximate 65/35 split.Â
"A 400 student loss is kind of unprecedented," Ream said. "It's just a reality that we have to keep the budget growth under inflationary growth."
The schools are also saving in other areas. Board Chair Luke Muszkiewicz said during the approval process that Ream himself had declined a pay increase during his yearly evaluation this summer. Muszkiewicz said this wasn't because Ream is undeserving, but because it helps ease the district's financial burdens.
Meanwhile, the district is preparing for the opening of three brand new schools later this month. Mickelson said she budgeted 100% of potential utility costs as a guess of what it might cost. She is working alongside NorthWestern Energy on these numbers, but does not know the cost at this time. She said the utilities budget for the new facilities will be adjusted after the first operating year.Â