Reserves will balance budget in District 196

Rosemount-Apple Valley-Eagan School District officials plan to borrow from the district’s reserves to balance the budget in 2013-2014 and avoid making cuts.

“This will mark our second year with no budget adjustments,” said Jeff Solomon, finance director for District 196. The district had faced deep cuts between 2010 and 2012.

On June 24, the School Board unanimously approved a proposed preliminary 2013-14 budget of $379.9 million, which is about $6 million ahead of previous predictions.

Solomon credits the higher projections to increased state aid payments and the state’s recent attempts to repay deferred aid payments.

Last session, the Legislature added $485 million to its E-12 education budget, which included a 1.5 percent increase to the basic per pupil formula in 2013-14.

This translates to an additional $2.4 million for District 196 in 2013-14.

In previous budget calculations, district officials predicted a 1 percent increase in state aid.

District 196’s preliminary general fund budget is projected at $293.1 million and is expected to incur a loss of $17.3 million.

The district plans to absolve the deficit by borrowing from its general fund balance. After covering the deficit, the general fund balance will be $21.04 million, which is 6.78 percent of the general fund. Board policy requires a fund balance that is at least 5 percent of the general fund.

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