Shakopee school officials have received some uplifting news: The 2017-18 budget may balance after all.
Last month, Acting Superintendent Jon McBroom braced board members for what he called a "worst-case scenario" — a $500,000 deficit that would require deep cuts. But new projections bring signs of hope for the financially strapped district.
The revised budget will reflect a $36,042 cash infusion to the general fund balance, which dropped from $2.5 million to $1.1 million last fiscal year. Policy states that the unassigned fund balance should hover between 8 percent and 12 percent of annual spending; by June 30, the balance had dwindled to 0.7 percent.
"If we were to have any catastrophic events in our district, it would be really hard to deal with that," said Interim Superintendent Gary Anger, who returned from medical leave last week.
If the revised budget holds up through June, McBroom recommended stashing away extra revenue to begin rebuilding the fund balance. The endeavor will take time and discipline, he said.
During Tuesday's board meeting, former Director of Finance Suzanne Johnson spent about an hour examining budget line-items for board members to increase transparency.
After Superintendent Rod Thompson resigned in June following allegations that he had misused his school credit card, Johnson led efforts to revamp purchase card (P-card) policies and helped form the Citizens' Financial Advisory Committee to oversee the district's finances. She resigned last month, returning to her previous job as controller for Hopkins Public Schools.
Liz Sawyer