Linn-Mar projects financial impact of COVID-19 on school's budget
by Robyn Ireland [email protected] · June 18th, 2020
Linn-Mar's chief financial officer J. T. Anderson presented his projections of the financial impact COVID-19 will have on the 2019-2020 budget at their school board meeting on Monday, June 8. While it is too late in the fiscal year for school state aid payments to be impacted (Anderson anticipates a surplus of $200,000), the 2021 budget will likely have a deficit between $500,000 to $1.5 million.
Property taxes and state aid is stable at 86 percent of the budget. On the expenditures side, staff was paid during the closure at 82 percent of the budget, and there were realized savings in terms of overtime, transportation, utilities, athletic officials and certain supplies. The flip side of the coin on the revenue side was the $500 million decrease of Medicaid; investment interest was down $40,000; and student activities were down by $75,000. The negative on the expenditures are the unknowns of internet costs, cleaning equipment and supplies, virtual software licenses (e.g. Zoom) and the biggest unknown: special education tuition.
The district will receive $425,832 of the $65 million CARES Act Funding, to be spent on COVID-19 related expenses between March 13, 2020 (when the schools were officially closed) to September 30, 2022. However, the money is expected to be spent in fiscal year 2021, on but not limited to:
1. Hazard pay
2. Nursing services
3. Medical & personal protective equipment
4. Food service modifications
5. Staff training on health and safety
6. Signage
7. Internet accessibility
8. Virtual programs/services
9. Mental health services
10. Additional/custom instructional materials.
Because the duration and real impact of COVID-19 is difficult to project right now, there remains a myriad of unknowns. Concerns about revenue run from state legislatures making across the board cuts and/or reducing Supplemental State Aid; deferred or delinquent property tax receipts; the potential impact on student enrollment; and COVID-19's impact on fundraising, large group gatherings, and other student revenue.
Concerns on the expenditures side are additional expenditure-related COVID-19 and return to learn requirements, and a budget that was already going to be tight with bringing two new schools online (additional staff, utilities and other services, as well as supplies).
by Robyn Ireland [email protected] · June 18th, 2020
Linn-Mar's chief financial officer J. T. Anderson presented his projections of the financial impact COVID-19 will have on the 2019-2020 budget at their school board meeting on Monday, June 8. While it is too late in the fiscal year for school state aid payments to be impacted (Anderson anticipates a surplus of $200,000), the 2021 budget will likely have a deficit between $500,000 to $1.5 million.
Property taxes and state aid is stable at 86 percent of the budget. On the expenditures side, staff was paid during the closure at 82 percent of the budget, and there were realized savings in terms of overtime, transportation, utilities, athletic officials and certain supplies. The flip side of the coin on the revenue side was the $500 million decrease of Medicaid; investment interest was down $40,000; and student activities were down by $75,000. The negative on the expenditures are the unknowns of internet costs, cleaning equipment and supplies, virtual software licenses (e.g. Zoom) and the biggest unknown: special education tuition.
The district will receive $425,832 of the $65 million CARES Act Funding, to be spent on COVID-19 related expenses between March 13, 2020 (when the schools were officially closed) to September 30, 2022. However, the money is expected to be spent in fiscal year 2021, on but not limited to:
1. Hazard pay
2. Nursing services
3. Medical & personal protective equipment
4. Food service modifications
5. Staff training on health and safety
6. Signage
7. Internet accessibility
8. Virtual programs/services
9. Mental health services
10. Additional/custom instructional materials.
Because the duration and real impact of COVID-19 is difficult to project right now, there remains a myriad of unknowns. Concerns about revenue run from state legislatures making across the board cuts and/or reducing Supplemental State Aid; deferred or delinquent property tax receipts; the potential impact on student enrollment; and COVID-19's impact on fundraising, large group gatherings, and other student revenue.
Concerns on the expenditures side are additional expenditure-related COVID-19 and return to learn requirements, and a budget that was already going to be tight with bringing two new schools online (additional staff, utilities and other services, as well as supplies).
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