Prepared Notes for Board Meeting †
April 12, 2010
Marc A. Schare
The Treasurerís Advisory met a week or two ago and received a verbal report from the team conducting the state audit as to what we can expect will be the significant findings of the report. While the auditorís office still has some work to do, it is fair to say that the final product will have a number of areas that the district can look at for reducing expenditures moving forward. In conjunction with the Superintendentís budget review committee, the results from the audit should give the TAC and this board the data necessary to make the strategic reductions that were promised during the levy campaign.
And speaking of reductionsÖ.
The board finance committee met two weeks ago and began to look at a five year forecast that will be discussed by the TAC at its next meeting. The five year forecast should have few surprises but should make for some interesting discussion at the work session scheduled for the next few weeks. The forecast clearly will demonstrate the mathematical need for a large levy sometime in 2011 and an even larger levy in 2013. A capital improvements component will also be needed sometime in that period. The levy requirement is projected due to both revenue shortfalls created by the state budget crisis and ever increasing expenditures caused by projected health care cost increases and the compounding impact of base and step salary increases. In my opinion, the financial situation in the district is so serious that it cannot be solved with the passage of a single levy or a cut list, even a painful one. What we need is a paradigm shift that will cause us to examine everything, to look at new ways of doing things, fully embracing technology and not being afraid to slay the sacred cow. Easier said than done to be sure, but if we approve the forecast next month† implicitly agreeing with the treasurerís assumptions, it would behoove us to understand the ramifications of what the forecast says.