Redwood Area school board sees 2020-21 budget

Troy Krause
Redwood Falls Gazette

The Redwood Area Board of Education got its first look at the budget for the 2020-21 school year which officially begins July 1.

Tom Anderson, Redwood Area School District finance director presented a preliminary budget during the June 22 board meeting.

According to Anderson, the preliminary budget is based on some assumptions, including a 2 percent increase in the amount of funding the school district receives from the state for its general fund, as well as an enrollment of 1,112 students K-12.

With that in mind, Anderson shared that the anticipated revenues for the upcoming school year are $14,360,672 with anticipated expenditures of $14,389,259.

Anderson acknowledged the fact that the preliminary budget numbers show an excess of expenditures over revenue, adding the difference is in the long-term maintenance budget, as there are several facility projects that are scheduled in the coming year.

Anderson explained the expenditures side of the budget, adding as is always the case the majority of those funds are in salary and benefits. In fact, of the $14 million amount salary and benefits make up more than $10 million - about 74 percent of the budget.

The expenditures side of the budget also includes approximately $2.7 million for purchased services. The majority of that amount goes to transportation.

Anderson told the board this preliminary budget, which the board approved as part of its meeting, will be revised throughout the school year.

The budget also includes revenue of $1.7 million for the debt service, with that same amount going back out to pay the debt service owed by the district.

In the end, the anticipated fund balance at the end of the upcoming school year, which is June 30, 2021, is $5,429,501.

Also during its meeting, the school board:

• Approved the employment of Maria Piette as the full-time Cardinal Kids Club coordinator at a prorated salary of $43,000 for the 2019-20 school year effective from her start date and $44,290 for the 2020-21 school year.