School Board sets Oak Harbor School District 2009-2010 Budget

The Oak Harbor School District Board of Education approved a budget of $48.85 million for the budget year that began September 1. The budget represents a $1.1 million increase, mostly due to federal stimulus funds, from last year's approved budget.

Despite the state budget shortfall, resulting in a $3.6 million reduction in state funds for Oak Harbor schools, Oak Harbor is one of very few districts statewide that did not layoff teachers this year. After two successive years of budget cuts, in which Oak Harbor School District reduced costs by 10 percent, the district was in a strong position to weather this year's state budget woes.

Federal stimulus money helped offset the shortfall, providing $2.1 million, and a local levy increase, which kicks in beginning 2010, added another $590,000. The rest was made up using the district's "fund balance," which is sort of a checking account to help the district through periods of low funding. By policy, the fund balance should be maintained at 3-5 percent of the budget.

Superintendent Rick Schulte told the school board that he's hopeful, depending on federal and state funding, that the district will be able to survive another year without any layoffs. It's important to start planning now, by taking advantage of attrition, to make this possible, he said. "This budget is not sustainable over the long term," Schulte said. "The federal stimulus funding is only a two-year deal, so we need to be thinking down the line on how we will manage this budget when the federal money runs out."

The 2009-10 budget projects a full-time equivalent student enrollment of 5,189. That's a reduction of about 100 students from last year. The budget has 343 teachers, counselors, and other state-certified positions, down two positions from last year. It also has 203 classified support personnel, an increase of nine positions from last year. The increase is mostly due to federal stimulus funds and specific positions funded by the increase in the local levy.

Only about 5.3 percent of the budget or $2.6 million goes to the general fund directly from local levies. The state provides about 67 percent of the budget or $32.6 million. Federal funds account for the remaining revenues, providing an estimated $11.4 million or 23 percent of the budget. This includes $5.9 million from the federal Impact Aid program, down from $6.0 million budgeted last year.