Budget report projects deficit spending for year

By Nancy Gutierrez

Exeter Union School District Business Manager Jihad Hemaidan informed the board that the district will be deficit spending this year.

This does not mean that the district has no money in the general fund. It does mean that the district will spend more money on things like school maintenance, student activities and salaries than they will receive from state, federal and local revenue. The result is a decrease in the fund balance at the end of this year.

The 2004-2005 working budget report shows a total revenue of restricted and unrestricted funds at $12,339,860. Total expenditures from the working budget are at $12,613,983. This leaves a deficit of $274,123. The projected ending general fund balance is $1,733,229. Hemaidan said the working budget is the best-guess estimate or projected numbers for the entire year. The projected ending fund balance was $1,733,229, from that balance the district must keep a state mandated three percent reserve as well as $415,000 for economic uncertainties.

Included in the financial report are year to date actual revenues as of Sept. 15. This is a snapshot of what revenues and expenditures have occurred up until Sept. 15. Hemaidan said the numbers change daily. The report showed actual revenues from Sept. 15 at $1,622,453. Total actual expenditures came to $2,024,665 -- a deficit of $402,212.

Hemaidan said the district is expected to deficit spend next year as well but the dollar amount should be smaller due to an increase in enrollment. The high school district has been deficit spending for three consecutive years.

"This is indicative of the state of California's economic situation," Hemaidan said. "As well as current programs that [the district] operates which haven't reduced. We continue to operate as is."

The board approved the budget report 4-0.

In other business:

  • The board presented six students with certificates of recognition. For the month of August. Award winners included sixth-grader Katrina Torres, seventh-grader Salyna Salinas and eighth-grader Casiano Avila. For the month of September award winners were sixth-grader Hannah Boland, seventh-grader Kirk Elkington and eighth-grader Elizabeth Lopez.

  • The board approved the district application for the English Language Acquisition Program (ELAP). ELAP provides funding for English Language Learners in grades 4-8. Funds provide supplemental support for assessment, instruction and coordination. Projects Director Chuck Delap said the school will receive $100 for each of its 162 ELL students.

    The funds will be used to conduct assessments of English learners, provide programs for English language development instruction, provide supplemental instructional support like intersession, before and after-school opportunities or summer school for ELL's and coordinate services and funding sources for ELL's including Community Based English Tutoring (CBET), reading programs and programs for at-risk youth.

  • The board ratified the contract for health and welfare benefits with the Exeter Elementary Teachers Association.

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