Cedar Rapids school board approves preliminary 2011-12 school year budget

School board members unanimously approved the Cedar Rapids school district's preliminary 2011-12 school year budget tonight.

The budget was figured with a 0 percent allowable growth rate. It includes $254.2 million in revenues and $261.9 million in expenditures.

Steve Graham, the district's executive director of business services, noted that the discrepancy between the revenue and expenditure budgets can be attributed to the district's federal emergency fund. The Federal Emergency Management Agency doesn't pay up-front for its flood-related project costs, but reimburses the school district at a later date.

“The money will eventually come in,” Graham said.

Graham also stressed that the numbers are preliminary and are “very much” subject to change.

By approving the preliminary budget, school board members also gave the OK to the proposed tax levy rate of $15.16 per $1,000 of assessed valuation.

This rate is slightly lower than the district's current levy rate of $15.17 per $1,000 of assessed valuation.

That rate still could change for the better. The school board will have a public hearing on April 11 to certify the 2011-12 budget and levy rate. By law, board members can't approve a rate higher than $15.16, but they can approve a lower rate.

Graham said the rate could be lower if the Legislature approves an allowable growth rate higher than zero.

Republicans are calling for 0 percent allowable growth. Democrats are seeking 2 percent.

“We want, certainly for the benefit of the taxpayers, a higher growth rate,” Graham said.

The preliminary budget includes rebuilding the district's cash reserves, which took a hit during the 2009-10 school year after the statewide 10 percent budget cut. It also includes $4.7 million in non-categorical budget adjustments currently in the planning stages.

Also in progress are district conversations with the teaching staff.

“We are working with the Cedar Rapids education Association,” Superintendent Dave Benson said. “We are in discussion with them on our staffing rates and how we're going to move things around.”

There will some shifting next year because 77 teachers will retire on June 30, 2011.

Board members approved a one-time only addition to its early retirement incentive last October, adding $25,000 to the package for staff members who qualified.

The money will be paid for by the district's share of the Federal Education Jobs Bill funds - roughly $3.5 million dollars.

The offer was available to educators age 55 or older with 20 years of service in the district. Approximately 135 Cedar Rapids educators were eligible.

Administrators said in October that the early retirement incentive will result in recurrent savings. The total estimated salary savings for the 77 teachers is $1.028 million - an average of $13,357 per teacher.

Given the district's declining enrollment numbers, not all of the 77 positions will be filled. At the same time, though, there have been no layoff discussions.