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Serving Northern St. Louis County, Minnesota

Board OKs budget with small deficit

Approves new contract for Superintendent Oelke

ELY — The school district here will run a deficit for the second straight fiscal year after the board approved a budget that reduces the general fund by $64,282. That will leave a projected …

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Board OKs budget with small deficit

Approves new contract for Superintendent Oelke

Posted

ELY — The school district here will run a deficit for the second straight fiscal year after the board approved a budget that reduces the general fund by $64,282. That will leave a projected $795,974 in the fund, or about 9.5 percent of the district’s total budget.
“The district goal and policy is 20 percent, and to have a healthy fund balance again is what (Superintendent Ann Oelke) and I are really striving for,” Finance Manager Jordan Huntbatch said.
The deficit comes despite an effort by staff to reduce spending by around $450,000.
Cuts include reducing kindergarten to one section and combining third and fourth grades, which will eliminate a teaching position.
Other cuts will cause staff hour reductions to foreign language, sixth grade teaching staffs and the English department. According to district staff, a part-time custodian position and two bus routes will also be eliminated.
The district continues to grapple with declining enrollment, which directly affects revenue. Staff is projecting 27 fewer students next school year.
“We have 50 graduates and 24 kindergarteners. And we’re planning for 24 kindergarteners coming in, so that’s where a large chunk of that comes from,” Huntbatch said.
Just five years ago, the district had 574 students enrolled, according to district documents. Next school year, staff is projecting 461.5. Kindergarteners count as 0.5 of a student, which accounts for the fraction.
Due to that decline, the district will receive less money from the state, despite the Legislature approving a 2.74 percent increase to basic pupil aid. The state also lowered library aid from $40,000 to $20,000 and special education transportation reimbursement from 100 percent to 95 percent.
To mitigate some of that, the family cap on fees to participate in athletics has been raised from $550 to $600.
The board approved the budget unanimously. Hollee Coombe was absent.
New contract for superintendent
The board also approved a one-year contract for Oelke to continue serving as superintendent. Changes from her previous contract include a $375 increase to the district’s match for retirement contributions, which will now max out at $9,500. Oelke’s cellphone reimbursement will be reduced from $50 to $25 a month.
A new provision will reward one-time stipends for longevity of service. After three consecutive years of service, the superintendent will receive $1,000. After five consecutive years, the superintendent will receive $2,000.
Oelke’s salary remains unchanged at $43,405.
The board approved the budget unanimously.