Kalispell Schools tackle budget

Kalispell Public Schools will have to decide how to make up a projected $2.2 million general fund shortfall next school year according to a preliminary budget.

General fund dollars are spent on the day-to-day operations required to keep school in session such as facilities and salaries, for example.

Kalispell Public Schools Director of Business Services Gwyn Andersen suggested using one-time money from other funds or reserves to cover the shortfall rather than making cuts.

The preliminary budget for the elementary district currently shows a $19.3 million general fund budget, about $51,795 more than the 2016-17 budget. The high school district’s general fund budget currently stands at a $20.5 million, about a $239,504 increase from last school year.

Impacting the budget is House Bill 191 signed by Gov. Steve Bullock in February. The school funding bill provides inflationary increases over the biennium, but not quite enough particularly in the first year.

“Year one of biennium is a little tougher than in year two,” Andersen said.

In the 2017-18 school year it provides for a 0.5 percent inflationary increase and 1.87 percent in 2018-19.

Yet, slight increases in enrollment means Kalispell Public Schools may fare better in the 2017-18 school year than schools with ongoing declines in enrollment, which is tied to state funding to educate students.

Andersen also noted that the Legislature conceded in reducing educations cuts for all Montana schools from $24 million to $6.7 million.

Also impacting the district’s $2.2 million shortfall is a deficit in the district’s self-funded insurance. Andersen estimated a cash deficit in covering claims at around $419,000. In order to keep the program afloat a premium increase is necessary a cost shared by participating employees and the district. Andersen built into the preliminary budget $1.5 million to cover costs noting that a portion should be recouped when premiums are collected. The district will have a better idea in June according to Andersen.

There are more moving parts to the general fund budget that have yet to be finalized including some employee contract negotiations, curriculum purchases and costs associated with new high school courses.

School districts have until Aug. 25 to finalize budgets.

Reporter Hilary Matheson may be reached at 758-4431 or hmatheson@dailyinterlake.com.