Cedar Rapids school board discusses budget assumptions

A continued decrease in student enrollment, coupled with a slow-growing tax base, means fewer state and local tax dollars for the Cedar Rapids school district next year.

Steve Graham, the district's executive director of business services, presented the 2011-12 preliminary budget assumptions to school board members tonight.

“There are some challenges that we face,” Graham said.

Among those are creating a budget that serves students and staff in a tight economy, recognizing the challenges faced by local taxpayers.

Board members approved $1.13 levy rate increase last April for the current school year. This increase was in response to the mandatory across-the-board reduction in state funding and a county-wide property tax abatement.

Combined, the two were a $10 million loss in funding for the district.

That money was covered by the district's cash reserves. In turn, the rate increase was approved to replenish the depleted fund.

“We are very sensitive that we raised that tax rate from fiscal ‘10 to fiscal ‘11,” Graham said.

Administrators hope to maintain a stable property tax levy rate when planning next year's budget, but there are other assumptions at play. Among these are negative growth in new money because of the district's decreasing enrollment numbers, along with increases in the Iowa Public Employees Retirement System (IPERS) contributions and slow growth in the district's tax base.

The district's certified budget enrollment for the 2011-12 school year will be 16,806 students, a decrease of 123 students from this year's 16,929 total.

Other factors that will be impacted by the budget planning process are class sizes, staffing numbers and wage increases. Graham said all of this information will be taken into consideration over the next few months.

Iowa school districts must have the 2011-12 school year budget certified by April 15.