Luverne School Board considers budget revisions

With an anticipated shortfall of $1.6 million reflected in the revised 2020-21 budget, Luverne School Board members postponed action on the budget until all receipts are noted.
District business manager Marlene Mann presented the revised budget at the March 25 regular board meeting, showing anticipated revenue of $17.9 million with expenditures at $24.3 million.
Mann said school districts typically revise budgets once during the spring of the current school year. Due to the complexity of this year’s budget accrual, she recommended another possible revision closer to the end of the fiscal year on June 30.
“Previously we rolled over the old budget,” she said. “This year it may need to be different than just a rollover.”
Included in the expenditures is $4.8 million in construction costs, some of which board members approved for the upgrade of materials used in the current construction project. The upgrades were approved from the general budget.
Board member Reva Sehr requested that the construction expenditures not be included in the revised budget.
The report included only the interest revenue of $46,707 (accrued during the current fiscal year) from the $30 million building bond passed three years ago.
“I feel we are expending more than we really are,” she said.
The exclusion brings general fund expenditures to $19.5 million and a deficit of $1.6 million.
“To me that seems a more realistic picture if we throw that (building expenditures) out of there,” she said.
However, the revised report of revenues and expenditures was not in sync with one another.
Revenues reflected eight months of the current fiscal year while expenditures reflected nine months.
“The summary report is a little deceiving,” said administrative assistant Brenda Teal. “It is dated March 25, but the (revenues) entered are only through Jan. 31.”
The revenue lag is attributed to delays in the release of grants and aid packages from state and federal programs associated with the coronavirus pandemic.
“It is a little tricky here with budgeting because of the COVID,” cautioned Superintendent Craig Oftedahl. “It might not be as bad as it appears it might be.”
Luverne School Board’s next meeting is at 7 p.m. Thursday, April 22. A board work session is planned for April 8.