WINONA, Minn. – A balanced budget will be difficult this coming year for Winona Schools, according to Kristy Millering, finance director, but, she said, major cuts in programs and services can be avoided. Millering has developed two budget models for the School Board, each for $38 million, to consider June 17. Each, she said, has a manageable deficit:
> Model 1: A $513,000 shortfall to be covered by more revenue or cutting expenditures.
> Model 2: A $283,000 shortfall that assumes salary budget-friendly adjustments in yet-to-be negotiated contracts.
Millering said that budgeting is especially tricky this year. The Covid pandemic has been a curveball that complicates budget planning. Enrollment has dropped by 150 with some parents opting for home-schooling. The result: per-pupil state support is off $1.5 million. The district also has a $600,000 decline in aid for free and discounted student meals. Adjustments are possible through realigning staffing to the projected enrollment and also matching supply budgets to other adjustments, Millering said. What about federal dollars in Covid recovery packages? Unknown is what strings might be attached. Also, the Minnesota Legislature is divided. Right now the House is pondering a 2% increase in the state per-pupil formula, which could add an additional $319,000 for Winona, but the Senate is not considering any increase. What about spending down the District’s reserve? It’s a possibility but could damage the district’s credit rating and hurt borrowing prospects into the future.
Millering. School district finance director: “Every day these numbers can change because we’re finding things out.”