Board OKs $43 million budget for East Valley district

The East Valley school board voted Tuesday night to adopt a budget of just over $43 million for the upcoming school year. The budget is based on a projected enrollment of 4,044 students.

Last year’s budget was $37 million, based on a projected enrollment of 4,069. The district’s actual enrollment for 2005-06 was 4,095.

East Valley district has seen a slow, but steady decline in enrollment since it peaked with an average enrollment of 4,673 in 1999-2000. Part of the decline in enrollment is due, in part, to layoffs at Kaiser Aluminum, which meant some families moved out of the district.

Rich Cook, financial manager for the district, said that they are using a conservative estimate for this year’s enrollment.

This year’s general fund budget will total about $36.5 million, up from $33.5 million last year. Salaries and benefits make up 79 percent of the district’s general fund expenditures.

Most of the increase in the general fund budget is attributed to cost of living adjustments and monthly benefit increases, higher energy costs and new textbook options.

The budget also includes $4.3 million debt service funds for payments on outstanding bonds; $679,450 for Associated Student Body Fund and $230,000 from the transportation and vehicle budget, which will pay for three new buses this year.

Cook said that the state reimburses the district’s transportation and vehicle fund on a 13-year depreciation schedule. These funds only can be used for school buses and this way the fleet is kept current, avoiding excessive maintenance costs. The cost of buses is also projected to go up significantly which makes it important to purchase the buses now.

The district’s capital projects fund budget is $1.25 million of which $1.1 million will be spent on the district’s energy project. The savings as a result of the energy project will be reflected in reduction in expenditures from the general fund.

The general fund balance is what’s left over after all expenses are paid and serves as an emergency fund.

This year’s fund balance is estimated to be about $1 million.