Carryover balance increased, administration decreased, but financial challenges continue

Milford Schools’ 2010-11 year-end balance increased by +$2.3 million versus projections, due to the board’s and administration’s work to find efficiencies and reduction opportunities.   However, this savings simply offsets continued revenue declines, continuing the challenge to balance the budget without sacrificing education.

Over the next several years, the district will see $2 million less in Federal support, as well as an accelerated elimination of the Tangible Personal Property tax of $2.65 million.  As for everyone, prices for items the district requires continue to increase, making the gap between revenue and expenses all the larger.

Part of the effort to lower expenses included significant reductions in administration.  For last fiscal year, the district cut $401,700 in administrative expense.  For this upcoming year, another $273,900 will be cut, resulting in a total of $675,600 reduced from administration.  This represents a total of 30.15% of all reductions made, although administration (before cuts) accounted for only 19.28% of the budget – thus, administration has been cut more deeply than the percentage it represents overall.

Just as in the private sector, reductions in personnel mean the administration is doing more with less. Currently, six people in five departments oversee the district, which runs on over $50 million in annual revenue.  These last cuts forced significant responsibility reorganization within this administrative team.  During the process, each task was evaluated to determine the best flow between departments and student needs.  So far, the changes have resulted in better decisions for both our students and our budgets.

The district is lucky not only to have talented individual administrators, but also an integrated, supportive team.  However, there is a limit to what any individual or team can do.  Many tasks are required by state or federal government; these just add on to the day-to-day requirements and challenges of running a business that serves over 6,400 students.

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2 Responses to “Carryover balance increased, administration decreased, but financial challenges continue”

  1. Linda Malott Says:

    While it has been public knowledge that the Tangible Personal Property Tax (TPPT) was being phased out of school district budgets, I thought that someone in state government had said that some of the CAT tax which replaced TPPT was being directed to the schools as a replacement. My information is several years old so do you know whatever happened?

  2. andreabrady Says:

    Hi Linda,
    Yes, the CAT tax was supposed to replace at least some of that income. However, there has been no word of how much, how it will work, or when it will happen in several years. At this point, schools are planning on not receiving any income from CAT. If something changes and we do end up getting something from it, we’ll be very happy, indeed!

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