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H-BC School Board prepares for another budget deficit year

By
Mavis Fodness

Hills-Beaver Creek School officials expect another year of deficit spending according to a preliminary 2020-21 budget approved by board members June 8.
H-BC expects revenues of $4.615 million with expenses of $4.721 million, or a shortage of about $136,000.
Expenses include $209,753 in capital outlay projects and $264,122 for transportation.
Revenues were primarily based on upcoming enrollment projections. Typically the district enrollment averages around 375 students.
Superintendent Todd Holthaus told board members June 8 that he is conservative when it comes to enrollment projections, anticipating a drop of 10 to 20 students for each budget cycle.
He is optimistic the enrollment decline won’t be as severe as in past years.
“We anticipate losing a few students but nothing too drastic,” he said after the meeting.
This spring the projection of fewer students was not realized. As a result the district received an additional $300,000. The district ends the current school year on June 30 with a projected deficit of $30,000.
However, lower than expected transportation and building expenses have been experienced, since the coronavirus pandemic closed both buildings in late March and the district no longer transported students due to the at-home distance learning instruction plans.
Earlier this year board members approved the reduction of one-and-a-half staff positions for the upcoming school year.
In addition, Holthaus reported that H-BC may receive $34,000 from the CARES Act (Coronavirus Aid, Relief and Economic Security Act).
 
Capital expenditures of $186,400 identified
The H-BC finance and personnel committee has identified $186,400 in capital improvement projects for the 2020-21 school year.
A capital outlay budget of $209,700 is budgeted, but some projects may not be completed this year.
One project, upgrading the football field lights, has already been dropped from the list due to costs rising above the budgeted $40,000.
“If we don’t have to spend on some things, let’s wait,” said committee member Arlyn Gehrke.
However, board members have agreed to spend up to $10,000 for surveillance system upgrades at the secondary school and another $20,000 to upgrade the 20-year-old phone system at the elementary.
The secondary building will also have a $13,500 upgrade to the heating and air-conditioning controls.
Other possible capital expenditures include a new handicap van ($35,000), Chromebooks ($10,000), Smartboards ($20,000), sealing and painting of the secondary school parking lot ($10,000), and kitchen equipment ($22,900.)
Board members also approved $5,000 to ICS Consulting to complete a long-term facilities improvement plan. The plan is expected to be completed this summer.
“ICS may be able to shine some light on other areas of improvement,” Holthaus said at the April 22 committee meeting.

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