For the third year in a row, Hutchinson Public Schools may have to make cuts to keep its budget in line in the face of declining enrollment, inflation and growing expenses.
At a quarterly meeting last week, board members were presented with $475,372 in cuts recommended by school administrators, which ranged from reducing class sections to reorganizing how student interventions are structured. The consideration follows nearly $500,000 in cuts made for the current school year, and nearly $1 million the year before.
“We’re slowly declining in student enrollment,” said superintendent Daron VanderHeiden.
Since the 2014-15 school year, enrollment has declined from roughly 2,900 to 2,800. It is projected to be at 2,734 next year. Student interest in attending college during high school has impacted enrollment in recent years, but a larger factor has been at the elementary level. More students are graduating than entering the district, despite the school attracting roughly the same ratio of children. The trouble stems from lower birthrates in the county, which reflect a statewide trend over the past 10 years.
County births did rebound some in 2018, but aren’t expected to be seen in the school budget until 2023, according to a budget presentation reviewed by the School Board. Previous cuts kept the school’s reserves on target through 2020. Current cuts are meant to keep the school’s budget balanced through 2021. In the meantime, the School Board is eyeing 2021 and 2023 for another reason — they’re the expiration years for operating levies approved by local voters to support the district. The Board will have to decide if it will ask voters to renew the local tax, and if it will ask for a larger amount to offset budget demands in the face of inflation.
Enrollment isn’t the only factor weighing on the school’s annual budget. Every district receives money from the state for every student enrolled. Hutchinson Public Schools receives just under $6,500 per student. Data from the Minnesota Department of Education, the Bureau of Labor Statistics and financial planners Ehlers, which was distributed to board members, shows the 2018-19 per-pupil allowance is $1,416 below where it would be if it kept up with inflation since the early 1990s. With an enrollment of 2,800, the school would have receive an additional $3.96 million if the formula had kept up.
The data reviewed last week was based on a 1.5 percent increase to the per-pupil formula for next school year. The state has since passed a 2 percent increase.
Another major factor in the school’s budget is the cost to support its special education services. In the 2014-15 school year, special education cost $4.1 million in the district. In the 2017-18 school year, it cost $6 million. State and federal subsidies offset that amount but have not kept up. In the 2017-18 school year, the school pitched in $2.5 million from its budget, up from $1.4 million in 2014-15.
“We’re not blaming special education students. They need the services,” VanderHeiden said. “It comes down to the aid formula. The state and federal government aren’t paying for special education the way they should and someone has to pay for it.”
In the $34.4 million 2019-20 budget, 75 percent of spending is to cover salaries and benefits. The next largest category, purchased services, accounts for 12.67 percent. VanderHeiden noted that the purchased services category also accounts for expenses such as for substitute teachers and other staff aside from regular school employees.
The School Board has until June 30 to consider recommendations and approve a budget to meet state deadlines.
