District 88 OKs

cuts of $500,000

Excess levy discussion

planned March 9

By TONY ZIEBOL

Journal Staff Writer

NEW ULM -- With District 88's fund balance depleting, the School Board approved a $500,000 reduction in general fund expenditures for the 2000-2001 school year at the regular board meeting Thursday.

For the third year in a row, expenditures have exceeded revenues, which has caused the district to look at long-term finances.

Superintendent Harold Remme said that if the board didn't take action in the near future, the district would be in serious financial trouble.

At the next board meeting, March 9, Remme said a serious discussion about an excess levy referendum later this year will take place.

Without more revenue, the district will have to make significant cuts in the next two school years.

Various programs and services will disappear and class sizes will rise, Remme said.

A passed referendum, however, still might not prevent cuts from taking place in the 2001-2002 school year, but it could bring those cuts back relatively soon.

Remme said it's important to recognize the positives in the district including good programs and class offerings, fairly good class sizes, a quality staff, relatively modern facilities, and, up until now, financial stability.

He wants to keep those offerings and the staff together, and even improve upon it.

"We have a good (school district)," Remme said. "I'd like to keep it that way and make it better."

The board also approved an amended budget for the 1999-2000 school year

When the budget was approved last spring, it was predicted that expenditures would exceed revenues in the general fund by $153,560.

However, the revised projections show a shortage of $892,977.

The difference can be blamed on enrollment projections that were too high, which meant revenues were not as high as expected, and many expenses were higher than budgeted including salary settlements, busing charges and technology.

This year alone, the district over-estimated the enrollment projections in 9 of 13 grades and 70 students, causing nearly $150,000 in revenue shortages.