St. Landry Parish School Board warned of need to adjust budget

Roger Young, a St. Landry Parish School Board member from Eunice, listens to committee discussions on Monday in Opelousas. (Photo by Harlan Krigan)
Superintendent Edward Brown listens to a School Board member during a meeting Monday. (Photo by Harlan Kirgan)

Board
receives budget warningBy Harlan Kirgan
Editor
OPELOUSAS — St. Landry Parish School Board members were told to expect an operating loss in the budget year that ends in June by their financial director.
“We are really going to have to take a look at what we are doing because our revenues are decreasing,” Tressa Miller, finance director, said a School Board Finance Committee meeting on Monday.
“We have to get our spending in line with our revenues,” she said.
The school system should expect a $1.1 million decrease in its Minimum Foundation Program payments because of reduced student count.
After the meeting, Miller said February enrollment was 14,262 students, down 155 from the same time last year.
Health insurance premiums are expected to cost $1.5 million more than budgeted, she said in a fact sheet given to board members. Health insurance expense is expected to be $3.3 million higher than last year. The budget included an increase of $1.8 million, which is caused by additional employees obtaining insurance and employees adding a spouse/family coverage to comply with the Affordable Care Act, the fact sheet stated.
The School Board’s budget had projected a $86,333 operating surplus at the end of the fiscal year. An operating loss of about $3 million is now forecast, according to Miller’s fact sheet.
Miller said about 85 percent of the school system’s budget is salaries and benefits.
“We are going to have to look at how to downsize facilities, programs, something,” Miller said. “We can’t keep operating the way we are with what we have.”
Board member Candace Gerace said the school system is schedule to add 19 bus drivers as full-time employees.
“It is really going to eat our lunch in next year’s budget,” she said.
Superintendent Edward Brown, after the meeting, said the school system is required to add the drivers to its payroll.
The financial reports delivered to the Finance Committee pointed to Miller’s prediction of an operating loss for the year that would erode the school system’s general fund balance of $13.6 million.
The general fund spent $1 million more than budgeted in March.
“You can expect another loss for April and May and June,” Miller said. “You are going to continue to see losses.”
In other Finance Committee business:
— Recommended the full board approve a three-year contract with Kolder, Champagne, Slaven & Company LLC, for audit services for years at a cost capped at $69,900 a year.
— Members were reminded a $10 million bond issue is to be used for construction of a cafeteria and two classroom buildings at Leonville Elementary; removal of modular/temporary building being leased throughout the district and replace with permanent structures; and replace leaking roofs throughout the district. Repair of the leaking roofs is estimated to cost $2.3 million, Claudia Blanchard, director of curriculum, said. Blanchard said warranties on roofs at 27 facilities are being investigated.