Kirkwood School Board Approves Budget

Kirkwood School Board members recently approved a 2011-2012 budget that reflects cuts aimed at reducing district expenditures, as well as a projected drop in operational fund revenue.

The budget, approved by the board last Monday, includes about $2.3 million in reduction efforts, the majority of which comes from the district’s Early Retirement Incentive Program (ERIP) and staffing reductions, which account for an approximately $1.9 million in savings for Kirkwood schools.

The district enhanced an early retirement package for teachers and provided a first-time early retirement incentive for support staff that extended health insurance benefits for employees two years after their resignation. Forty staff members have decided to retire early this year.

“I think the (ERIP) was very successful and that the extra enhanced early retirement option encouraged more people to retire,” Williams said. “We did what we hoped it would do.”

In addition to the ERIP, the district has not filled 23 positions in the past two years. The district reorganized certain departments and some positions will not be filled due to attrition.

“Our goal was to (propose cuts) without impacting class size or the structural integrity of our schools,” Williams said at a school board meeting earlier this year.

Revenue Challenges

Despite the reduction efforts, the district is projecting an approximately $3.5 million deficit for operational funds for 2011-2012, with projected fund expenditures at $61.6 million and projected revenue at $58.1 million.

The district projects to receive about $1.1 million less in revenue than in the 2010-2011. The drop is attributed to a decrease of interest on investments, reductions in revenue from the Voluntary Interdistrict Coordinating Council (VICC) program, as well as a decrease in tax revenue from local county and state sources, according to a statement in the district’s electronic newsletter.

Five years ago, the district was earning about $1.2 million in interest revenue with rates at 5 percent. That figure has dropped to $130,000 with interest rates at 0.25 percent, said Michael Romay, chief financial officer for the Kirkwood School District.

The number of students participating in the Voluntary Interdistrict Coordinating Council (VICC) has dropped, as the program is being phased out, and the reimbursement rate per student has seen a decline. At the program’s high point, the district was receiving $9,100 per student, according to Romay. Next year, the district will receive $7,000 per student.