Litchfield Public Schools are in sound financial position.
That was the message during the March 28 School Board meeting, as the board approved a revised budget that shows the district finishing the current fiscal year with a projected balance of $12,927,957.
“Overall, the school district is in really good shape … projecting to be in better shape at the end of this year than at the end of last year,” Business Manager Jesse Johnson told the board. “Hopefully, this will keep us going in the right direction.”
The revised budget shows an 11% fund balance, which is slightly better than the board’s policy of carrying at least a 10% fund balance. The district has seen fund balances of 6% and 7% in recent years.
The biggest area of change is in the General Operations revenue fund, which saw a $1.159 million increase — to $19 million — in the revised budget. That helped the fiscal 2022 revenue budget increase to $25,552,684, up $1,711,955 from the original 2022 budget.
Much of the increase to the General Operations fund is a result of an increased student population, Johnson said. The district’s average daily membership is currently 1,547, while the district started the year with an average daily membership of 1,497.
The most significant increases in student enrollment over the beginning-the-year projections come in kindergarten, where the district budgeted for 115 students, but currently has 138. Other elementary school grade levels have seen increases, as well, Johnson said, as enrollment bounced back after one year of increased at-home and online school due to the COVID-19 pandemic.
Any increase in the student population is a good thing for the bottom line, as districts receive $6,728 per pupil in general education funding from the state.
The revised budget also shows an increase of $371,091 in the food service fund, a result of about 13,000 additional meals being served during the year, Johnson said. Also playing a role is the federal funding the district receives for food service, which increased during the pandemic. The current federal reimbursement per meal is $4.56, while a paid student usually pays $2.65 per meal and the free-and-reduced meal program reimburses the district $3.16 per meal.
The number of lunches served at the high school have increased this year, Johnson said, but he couldn’t pinpoint a specific reason.
“There are a lot of positive things going on at the high school (in terms of school lunch),” Johnson noted. “We started seeing the trend (of increased meals) before some of the free meals came into play.”
Among the changes at the high school are a new menu, new grab-and-go lunch options, in addition to the renovated lunchroom, which is part of the construction projects throughout all three of the district’s school buildings.
Things are going so well financially in terms of food service, that the district plans some kitchen improvements. The revised budget shows a projected balance of $532,176 in the food service fund, which is more than the approximately $300,000 balance allowed by state guidelines, Johnson said, so kitchen upgrades are being investigated.
The district’s General Fund Unassigned balance is projected to be $2,047,208 by the end of the fiscal year June 30, which is a $428,427 increase from the 2021 budget.
“That’s a good number; we’re going in the right direction,” Johnson said.
The elimination of pandemic restrictions also is expected to help the district’s General Fund Assigned balance, which shows a $25,312 increase over 2021. Much of that is from projected revenue from the high school construction house, for which Johnson said he is hoping for a $45,000 profit.
