As posted previously, MEVSD is officially out of fiscal caution.  That’s a huge relief, but only the start of a long journey.

The challenge now is to keep us on track.  Mr. Seymour presented a 5-year forecast at the board meeting (which must be filed with the state) which incorporates projected changes in income and expenses for the next few years.  With many large income decreases expected, and expenses continuing to increase, the district must start planning now in order to make the 2008 operating levy last for at least 4 years.

The board asked Dr. Farrell and the administration to identify reductions of 2% of the budget starting this year, for the next five years.  This will stretch our levy dollars and keep us conservative re: the 2%/year we could lose for over 20 years.  However, there are even more questions:  it is still unknown if the state will be able to find funds to plug the almost $1 billion hole the loss of slots income has caused.  It is possible we could see additional cuts of up to $4 million in the next two years, in addition to the 2% we are losing due to changes to the state funding formula.

If these cuts happen, the district will have a lot of work ahead.  Right now, other options (such as delaying a tax break) are being discussed by the state, and districts have been told to assume the money will be available.

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