The Brandywine School District has a preliminary $129.5 million operating budget in place for the 2009 fiscal year, an increase of 5.9 percent, with state revenue up despite gloomy forecasts made last year.
Because of lean financial times, the state did make $1.1 million in hard cuts, but revenue is still up overall by $600,000 to $66.1 million compared to last year, Chief Financial Officer David J. Blowman said at the Brandywine Board meeting held Monday at district offices. That is because, despite initial uncertainty, the state funded full-day kindergarten in Brandywine.
Residents approved this initiative during a district referendum in June, 2007.
There is also more state money this year despite a lack of any cost of living increase, because teachers receive more funds for the level of education and experience they have, Blowman said.
An anticipated enrollment increase of 145 students over last year to 10,355, reversing the decade-long downward trend, comes from the boost of full-day kindergarten, Blowman said. Also boosting enrollment: Marion T. Academy charter's closing as well as East Side Charter and Edison -- both under school improvement.
“The flip side to that is we had a couple of charter schools open – the Prestige Academy and Delaware College Preparatory Academy,” he said. “We’re projecting that our charter school bills for this year anyway will drop a couple hundred thousand dollars, which is good news.”
Moreover, it’s a very good year to be consolidating space, which will save the district money, Blowman said. Namely, Hanby Middle and Darley Road Elementary schools will close next autumn.
“Since the District Finance Committee met, we’ve had another round of disturbing news from the state in terms of state revenues,” Blowman said. “It looks like it’s going to be another very grim year. The only good news is that we know about it now rather than having to react to it in the spring, which is what happened last year.”
Brandywine also anticipates an increase in energy expenses, due to the cost of natural gas projected to go up 17 percent in November, and energy bills at the district’s recently reopened largest school building, P.S. duPont “expected to go up despite the fact that systems in that building will be infinitely more efficient.”
Board member Mark F. Huxsoll asked how locked in state funding for this fiscal year is and if the district will have to make any revisions in its budget.
Blowman said the district has to be very careful in case things get worse for the state.
“I would rather we get more conservative now with an eye to next year,” he said. “I think that’s going to have to lead to conversations with the state about flexibility – genuine flexibility. The one good thing this time is that I think the state will probably plan for a fairly pessimistic, governor’s recommended budget in January.”
Superintendent Dr. James R. Scanlon said state cuts late last year were frustrating for everybody and caused a lot of panic and emotion.
“Those are cuts that will impact students two or three years down the road – summer school, staff development, content specialists,” Scanlon said. “It’s a very difficult time not just in Delaware but across this country."
The Brandywine Board also approved the district’s financial position report, required documentation that shows the state the district can meet payroll between July 1 and October 15, when the bulk of taxes roll in. Brandywine anticipates $20.7 million in total income and $12.2 million in payroll and other expenses, leaving it with about $8.5 million. Blowman said. But the report overstates a district’s financial health somewhat, he said.
“That’s going to be a conversation with the District Finance Committee. We used a format that is very narrowly proscribed by the state. We will not have an available balance on October 15 of $8.5 million,” he said. “It’ll be a little less than that. Again, this is the format we’re required to use.”
The board anticipates approving a final budget in December, well after Sept. 30 enrollment counts are taken.
