Ladue School Board Approves $3.2 Million in Cuts for 2011-12 Budget

A $50.5-million operating budget for the next school year won unanimous approval of the Ladue Board of Education Monday night. The new budget is $3.2 million less than that for the 2010-11 academic year and reflects  staff and service reductions prompted by deficit spending last school year.

By a 5-0 vote (with two absences) during its work session Monday, the board approved the new budget after the district's top finance officer, Jason L. Buckner, advised the board that the budget had been increased about $300,000 from that presented to the board two weeks earlier. That occurred when the administration added two teachers and two teaching assistants to the district's instructor ranks.

The new budget projects a year-end budget surplus of about $350,000. That compares to a deficit of $3.1 million for the last academic year.
Earlier this year, the deficit resulted in a , including reducing staff, outsourcing some custodian services,
slashing of overtime compensation, eliminating holiday break pay for some
employees, imposing school activity fees, a small increase in meal program costs and changes to the district's busing and transportation services.

"Significant expenditure reductions are included in this budget, including reductions in staffing, student transportation, capital expenditures, supplies, purchased services and travel in various budget areas," Superintendent Marsha Chappelow wrote in an accompanying budget message.

Budgets increase in some areas, including those related to state-mandated
hikes in employee retirement contributions, some purchased services and
contracts, health benefits, and a 1-percent raise for most employees, Chappelow wrote.

Despite the reduced operating budget for next school year, Buckner said the district's spending cuts are just a temporary solution to financial problems associated with district trends of increasing student enrollment, and flat or declining property tax revenues. He said he was projecting a return to deficit spending in 2012-13.

"The five-year plan does not look rosy," Buckner said.

Buckner also advised the board that the district may have to "short-term borrow" next fall to meet cash flow needs before tax revenues are received by the district.

Buckner's budget projections are based on the district's current operating tax  levy, $2.75 per each $100 of assessed property valuation.

The board has discussed submitting a proposed increase in the property tax rate to voters next April. The tax rate was last raised in 1993. Some board members have
voiced support for a tax increase, and Chappelow has said that she would begin planning to determine student needs and the level of increased financial support the district would require from voters.