PORT ANGELES — The Port Angeles School District is expected to end the 2012-2013 school year more than $276,000 in the hole, with the difference paid with reserves, the School Board was told this week.
Kelly Pearson, director of finance and operations, presented midyear budget projections to the board Monday that show that the district’s total revenues will be $36,616,917, while expenses are expected to reach $36,893,040, a difference of $276,123.
The 0.7 percent shortfall includes both lower-than-expected revenues and higher-than-expected expenses, and was anticipated by the School Board, staff members said.
The district is currently even more over budget, by more than $600,000, but Pearson said the higher deficit amount is not expected to continue to the end of the school year.
“March is the lowest point of the year. Then, the taxes come in,” she said.
Pearson said the district currently has a “committed fund balance” of $1.4 million, about 4 percent of the district’s annual budget, which cannot be spent.
‘Undesignated, unreserved’ funds
She said an additional $1.8 million of the general fund balance is considered “undesignated, unreserved” funds, which will be used to pay for the shortfall.
“The balance was built up a few years ago in thoughtful anticipation of such a possibility,” Pearson said.
The district is expecting a 5 percent to 7 percent cut in federal funds as a result of sequestration.
Existing district levies help make up for some of these funding losses, Pearson said.
“Without local support in the form of levy dollars, we would have to make some difficult cuts that would certainly impact our ability to provide the quality of education that our community has come to expect,” she said.
Enrollment is slightly higher than anticipated.
On March 1, the district counted an average of 3,423.26 full-time-equivalent enrolled students, 21.45 more than estimated.
According to the Office of Superintendent of Public Instruction records, the district averages $9,473 in annual spending per student, with 70 percent of funds being spent in the classroom, 12 percent for district and building administration, 8 percent in maintenance and operations, and 4 percent each for food services and transportation expenses.
________
Reporter Arwyn Rice can be reached at 360-452-2345, ext. 5070, or at arwyn.rice@peninsuladailynews.com.
