.jpg)
Deficit for 2024-25 widens to $318,495 as student enrollment lags
The Ely School District’s budget deficit for 2024-25 is better than twice as large as earlier projected.
During a brief meeting Monday night, school board members approved an adopted budget that’s in the red to the tune of $318,495, with general fund revenues of $8,183,343 offset by expenditures of $8,452,899.
“It’s an obvious reason for concern,” said board member Tony Colarich. “We obviously can’t continue to run these deficits.”
Last summer, the board adopted a budget that showed a deficit of roughly $157,000, which came after a series of cost-cutting moves and revenue enhancements that closed a gap that started at over $400,000.
But over the course of the current school year, the budget trended in the wrong direction, with an average daily membership of 488.49 students, which takes into account how the state weighs student population totals for funding.
The district first budgeted for an ADM of 506 students, but enrollment totals have lagged and the district continues to lose funding when high school students choose to take college courses through the post-secondary enrollment options program.
The district also has seen rising costs, because of insurance, long-term substitute pay, athletics, and technology subscriptions that were more than budgeted.
In addition, the district saved $27,000 less than first anticipated because of budget reductions approved for the current school year.
“We have some budget items that came up that weren’t expected and we can’t control that,” said Colarich. “And the student count is down again.”
Board chairperson Rochelle Sjoberg said that the district’s finance committee has “met in-depth” over the budget issue and that “we’ll be reviewing that in-depth” with recommendations for 2025-26 to come to the board during the next several weeks.
“The deficit is the largest focus right now and (superintendent) Anne (Oelke) is working on a full list to report to the finance committee, and then to report to the whole board on what our next steps are. It’s definitely something that should be on top of everybody’s radar.”
The deficit is expected to have a further hit on district reserves. District unassigned fund balances will fall from just under $1.2 million to $868,892 as a result of this year’s budget, according to figures presented Monday.
Some help could be on the way, thanks to district voters who approved a $350,000 capital levy in last year’s general election.
Those funds can be used for technology, transportation and curriculum and will provide a revenue boost starting with the 2025-26 budget.
School officials are also hoping for help from St. Paul as state lawmakers convene.
Ely joins districts across the state in projecting deficits and exploring budget reductions.
That is coming despite a two percent increase in the state’s basic aid formula.
The latest enrollment figures, also presented Monday, show that Ely has 510 students enrolled in grades K-12, which is down from 525 students at the start of the school year.
Current totals show 327 students in the Memorial (grades 6-12) Building and only 183 in Washington Elementary.
In other business Monday, the board:
• Approved salary lane change requests from teachers Clara Roy, Andrea Thomas and Amanda Faulkner.
• Accepted the resignation of cafeteria aide Michelle Milton.
• Hired Greg Rozier for a part-time bus driver position.
• Approved annual membership dues of $1,544 in the Range Association of Municipalities and Schools.
• Approved the first reading of a policy regulating the use of personal electronic communication devices.
