Serving Gogebic, Iron and Ontonagon Counties
Serving Gogebic, Iron and Ontonagon Counties
By RICHARD JENKINS
Ironwood — With no information on how much state funding the district will receive next year, the Ironwood Area Schools’ board of education passed a budget Monday that mostly maintained the financial status quo while district officials await more information.
“The budget the board just approved tonight, it assumes flat revenue — meaning no increase, no decrease — we know full well there will be some kind of change … and when that happens we’ll have to amend our budget accordingly,” Superintendent Travis Powell said after Monday’s meeting. “Within that context, we said, ‘Until we know more, let’s just hit pause and then wait for when the state tells us more information.’”
The budget passed Monday includes $7,714,043 in revenue next year — which, along with the district’s $165,004 current fund balance — gives the district $7,879,048 available to spend next year.
The budget also includes $7,600,211 in spending — which would give the district a fund balance $278,837 at the end of next year if nothing changes.
It’s unlikely the budget will remain unchanged as the state struggles to deal with a significant decline in revenue due to the coronavirus pandemic. Although districts have yet to get specific information regarding the severity of possible cuts to per-pupil assistance from the state, local superintendents have told the Daily Globe they could be as steep as $700-per-student or more.
If that level of cut was imposed on districts around the state, Powell has previously said it would translate to approximately $525,000 less in revenue for Ironwood.
“(Monday’s budget) looks like we’re adding money to the fund balance next year … but that surplus is money we’re hanging on to in reserve in the event (the state takes funding away),” Powell said Tuesday. “If what they’re telling us is possibly a $500,000 reduction to our district were to happen, that $278,000 would turn into a negative $200,000 in a flash.
“So until we know from the state what they’re going to do, we’re really unable to make further cuts without actively destroying programing in our school that I think is critical.”
Powell said the district has made reductions in the budget passed Monday — including by not filling four teaching positions after people retired or left the district and transferring operations of the Great Start Readiness Program to the Gogebic-Ontonagon Intermediate School District.
Powell said the district is trying to be as frugal as possible in anticipation of the revenue reduction, but doesn’t want to make cuts that reduce the quality of education provided to students any sooner than necessary.
“There’s a reason we have this well-rounded offering for our students, you need to have that variety and … collaboration from all the different disciplines in order to make a well-rounded education,” Powell said.
