Luverne district budget shows deficit, especially in food service

With two months left in the fiscal year, Luverne school board members are prepared to overspend the 2020-21 budget.
With all revenues now included in the report, Luverne is on track to spend $20.2 million or $2.4 million over the $17.8 million in this year’s revenues, according to the revised budget adopted at the board’s April 22 meeting.
Business manager Marlene Mann outlined each of the district’s five budget funds.
The anticipated budget overage is based on spending 100 percent of all five allocations.
Current spending percentages ranges from food service (the lowest at 31 percent spent) to the general fund (the highest at 63 percent spent).
The food service fund shows the largest disparity in expenditures versus revenue, $822,000 and $286,000, or a negative budget of more than $536,000.
“With this much of a difference, it will be something you will want to be mindful of as we go forward, because, yes, we have a fund balance, and yes, we planned on some funds overspent,” Mann said.
“But the rest of the budget is something that needs to be watched.”
Board members questioned where savings could be found, focusing on food service.
Reva Sehr asked if any purchases can be put off until next year.
“If we can be as frugal as possible, I think that would be advantageous to our financial situation,” Sehr said. “I have a hard time seeing such a difference without fully understanding (meal planning).”
Due to the coronavirus pandemic, school breakfasts and lunches are free of charge.
Food service prepares for 1,200 students each day, but reimbursement is based on the actual number of students who go through the food service lines.
The number served varies greatly each day, Mann said — primarily due to the USDA nutritional guidelines and incorporation of commodities the district receives,  some meals to be more popular than others.
“If people don’t come down, we still have the overhead costs to pay,” Mann said.
For the next two months, the district will continue to receive free USDA commodities and, with increased student usage, this year’s food service fund overage will be lower, Mann said.
In previous years, the food service fund primarily broke even or ended the fiscal year slightly over.
“If we can get those numbers closer together, we’ll certainly work at it,” Mann said.
District funds and their projected revenues, expenditures (differences) and percentage paid are:
•General, $13.889 million, $15.8 million (-$1.923 million), 63 percent;
•Food service, $286,000, $822,000 (-$536,000), 31 percent;
•Transportation, $793,000, $801,000 (-$8,000), 76 percent;
•Community Services, $435,000, $545,000 (-$110,000), 51 percent;
•Capital expenditures, $315,000, $216,000 (-99,000), 45 percent;
•Debt payment, $2.12 million, $2.06 million (+$60,000), 100 percent.