Mt Pleasant News
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Wash Journal   Fairfield Ledger
Neighbors Growing Together | Dec 13, 2017

District’s business manager warns of future budget cuts

By Karyn Spory, Mt. Pleasant News | Oct 10, 2017

More budget cuts may be in the future for the Mt. Pleasant Community School District as student enrollment continues to decline.

Monday night, during the Mt. Pleasant Community School District’s meeting of the school board, Director of Business and Finance Ed Chabal discussed the district’s unspent authorized budget. A district’s unspent authorized budget is the difference between the district’s legal budget authority and actual expenditures in the General Fund for the fiscal year, according to Iowa Department of Management’s website. Basically, if a district’s revenues exceed its expenditures, its unspent authorized budget, or spending authority, is built up. However, if a district’s expenditures exceed its revenue, the district begins to eat into its unspent authorized budget.

“This is one of the early indicators that a district might need to come up with some kind of budget cuts,” said Chabal.

Between Fiscal Year 2016 and FY2017, the district’s unspent authorized budget decreased by roughly $700,000.

Board President David McCoid pointed out the district reduced its budget by nearly $700,000 last spring. The cuts should be reflected in next year’s unspent authorized budget, McCoid added.

Chabal’s concern, however, was the district’s decreased enrollment. The district’s certified enrollment showed a decrease of 45 students. And as state funding is based on student enrollment, Chabal said more tough decisions may be in the future. “Unfortunately losing 45 students this year, you’re probably looking at having to do some cuts next year.”

The next regular meeting of the Mt. Pleasant School Board will be Monday, Nov. 13, at 6 p.m., in the high school media center.

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