By Lori EhdeLuverne School Board members heard a favorable report from district auditor Jim Gelbman at their Thursday, Nov. 10, meeting.Luverne School District operates on an $11.6 million budget, and he said the school’s actual budget remarkably came within only a few percentage points of budget projections. "That’s very close," said Gelbman, representing Conway, Deuth and Schmiesing, PLLP, "especially considering there are so many things you don’t know about until the very end."A sharp rise in fuel costs for transportation and heat, for example, hurt many districts, Gelbman said, and special education reimbursements aren’t computed until the end of the budget year.In a Star Herald interview Tuesday, Gelbman answered questions about Luverne School District’s financial wellbeing.He said the Luverne district has established itself as a conservative spender compared with spending habits of other districts in the state and particularly those its same size."Luverne compares very favorably," he said. "We’re in the ballpark or are spending less. You’re spending appropriately. You’re not out of whack in any area."He said this should be comforting news to district residents who have just voted in favor of an operating referendum."There are a lot of referendums out there, and in many areas, they’ve waited too long," Gelbman said. "The referendums are there to keep them out of deficit spending, rather than to keep programs running. It’s like plugging holes."He said that’s not the case in Luverne.While its board and administration have faced difficult budget cuts in the past several years along with other districts, he said Luverne is fiscally strong.He said 10 years ago districts across the state went through a rash of consolidations. Now districts, especially the little ones, are leaning on referendums to get by, and it’s only a matter of time before more consolidation is necessary.Referendums are postponing that process, unless the state legislature changes its education funding formula."Every district in the state of Minnesota is buying time," Gelbman said. "As time goes by, with the way costs are increasing and revenues are growing at a small rate and enrollment is declining … there was at one time talk of only one school per county, and that time is coming sooner than we think."In the end, the strongest districts will survive."You’re looking at establishing Luverne as a surviving district," he said. "If I’m a parent shopping for a place to live, I’m going to choose a school that will best prepare my kids for the future. By keeping your programs in place, that’s where people will send their kids. You want to be the one to offer the best programs you can, compared to your neighbors."He said the referendum will give Luverne leverage in that battle to survive. "It allows us to keep programs in tact that much longer, without having to make significant cuts," he said."Luverne is set up for long-term survival."