ELY – School board members here last week unanimously approved a balanced budget for 2022-23 that calls for $8.2 million in revenues and expenditures.
Despite a noticeable drop in enrollment and corresponding reduction in student aid, ISD 696 remains solvent for the next year with the help of federal ESSER III stimulus funds made possible by the Biden administration.
The Ely school district will use more than $270,000 of federal funding to balance the budget next year. Approximately $356,500 in ESSER III funds will be available for future expenditures.
The adopted budget assumes an incoming Kindergarten class of 30 students this fall. Superintendent John Klarich also told school board members that total K-12 enrollment for the 2022-23 school year is estimated to be 510 students, a decrease of 28 students from 2021-22.
“We are going to try and recover some of those students we lost in the past,” Klarich said. “I’m hoping that’s the floor. We have room to grow there.”
He did not describe his efforts to increasing enrollment numbers.
Estimated Basic State Aid will increase about two percent to $6,863 per pupil, up from $6,728 last year. However, even with the increase, the assumed enrollment decrease will result in about $1,350,000 less in revenue.
Increased spending for staffing, based on negotiated contracts for salary and benefits increases about $250,000 next year; however, according to district finance manager Spencer Aune, staffing reductions this spring totaled about $320,000.
“We are also assuming our fuel costs will go up next year,” Aune added. “All other expenditures that are assumed to be pretty close to 2021-2022 levels.”
Revenue decline has further reduced the school district’s unassigned reserves which are projected to fall to $1,368,011, or 17.3 percent, below the school board’s goal of 20 percent.
Klarich seemed to think that state legislative financial help could still be forthcoming this year, despite all indications that state legislators have no appetite for a special session with elections looming.
“That remains to be seen what happens,” he said. “Money is in the legislature for us. We have sales tax exemption money. We have money in an increase in the IRRR taconite tax. It is a wait-and-see approach. They are at an impasse. They might have a special session before the general election or maybe after. I don’t know.”
He said he has continued discussion with the school district’s lobbyist, the Costin Group, on the subject.
“Everybody is hoping, but it takes a lot of movement from just a handful of people to make this happen.” He admitted, “Everybody is telling me that it is kind of not going to happen.”
Klarich continued, “This is nice news that our projection right now is a balanced budget. In this day and age, that’s pretty good. There are a lot of schools are having some negative news.”
He also said that in his conversations with other superintendents, “a lot of schools are using that ESSER money” to balance their budgets.
Superintendent contract
Klarich reached an agreement with the board to extend his contract as ISD 696 superintendent for another year. The new contract runs from Sept. 1, 2022 to May 31, 2023.
He came to ISD 696 midway through the 2021-22 school year following the resignation of Erik Erie.
Klarich continues to work on a part-time basis for the district. The contract calls for a minimum of 116 days on the job, with duty days consisting of one remote day per week and two on-site work days per week during the contract period. Six paid holidays are part of the contract.
Klarich will be paid $50,061. The school district will contribute $1,350 per pay period to a 403(b) retirement plan, beginning in January, with a cap of $13,500. The superintendent contract does not provide health benefits.
Other business
In other business, the board:
• Approved a two-year agreement with the district’s principal bargaining unit. Jeff Carey, who recently accepted the 6-12 principal position following the resignation of Megan Anderson, was formally hired under the new deal that pays him a salary of $99,492. He begins his duties on Aug. 8.
• Accepted a list of the school district’s newest tenured teachers, including, Clara Roy, Max Gantt, Madeline Olson, Timothy Hogan and Suzanne Zobitz.
• Hired Jerome Debeltz as Summer Skills Parprofessional for June-August.
• Hired Mike Rouse as Fall Musical Director.
• Reduced the Playground Aide position from 5.5 hours per day to 3.75 hours per day, effective this year.
• Accepted the resignation of Louis Gerzin as assistant hockey coach.
• Accepted the resignation of Megan Devine as assistant cross country coach.
• Renewed fall and winter head coaches for the upcoming year, including Louis Gerzin, football; Megan Wognum, volleyball; Jayne Dusich, cross country; Tom McDonald, boys basketball; Max Gantt, girls basketball; Jake Myers, hockey; Desirae Cram, fall and winter dance team; and Donna Kari, speech.
• Extended an agreement with Teachers on Call for substitute teachers for two years.
• Approved the IRS increase of mileage reimbursement rate of 62.6 cents per mile.