The Anoka-Hennepin School Board adopted the 2019-20 budget June 24 with virtually no changes from the previous presentation.
State legislators approved a 2% increase to the per-pupil funding formula, in line with assumptions used for the preliminary budget, Chief Financial Officer Michelle Vargas said.
Total revenue is approximately $581.7 million, a 2.3% increase over the previous year’s amended budget. About 89% of that revenue ($517.7 million) is allocated to the general fund.
Almost 70% of revenue ($404 million) is coming from the state with 20% ($114 million) generated by property tax. The remainder comes from the federal government and various local sources, according to documents.
The general fund revenue is anticipated to increase due to additional students and more funds from the state and property taxes.
State revenue will increase by about $8.4 million. $2.6 million of that increase is coming from basic general education aid broken down into $5.2 million from the 2% formula increase, $1.3 million from additional students and $509,000 related to pensions. Balanced against that, $4.4 million fewer dollars will be coming from state equalization aid – the constitutionally required redistribution of levy funds to balance disparities in tax bases across the state – due to an increasing tax base in the district, according to the documents.
Other state aid changes include an increase of $3.75 million in special education revenue and a $2 million decrease in long-term facilities maintenance aid.
Property tax revenue will increase by $5.8 million overall. Of that, $4 million is shifting from state aid to the levy due to increased property values.
After the general fund, the community service fund was allocated the next largest portion of revenues at $25.8 million. Food service was allocated $19.7 million; debt service was at approximately $16.6 million; the trust fund was allocated $1.3 million; and the capital projects fund gets $500,000.
Food service, capital projects and debt service all shrank in revenue compared to last year, with the most drastic decrease being a 79.5% decrease ($1.9 million decrease) in the capital projects revenue.
Total district expenditures are set at approximately $630.6 million, a decrease of almost $40 million from the previous year’s budget.
General fund expenditures make up more than 80% of all spending at approximately $526 million – a 3.9% increase compared to the prior year.
The next largest expenditures come from the capital projects fund at $41 million – which is a decrease of $61 million, almost 60% less than last year.
The remaining spending is budgeted at approximately $19.6 million for food service, $26 million for community service and $16.4 million for debt service.
Almost three-quarters of expenditures will go toward salaries ($344.3 million) and benefits ($116.5 million). The remainder are slated for purchased services and supplies (15%), capital expenditures (9%) and debt services (3%) with approximately $2.8 million categorized as “other.”
With an almost $50 million deficit across all budgets, Vargas also outlined a tentative timeline for future cuts. The school board will next have to set a goal for budget cuts unless it decides to call for an operating levy to increase revenue.
If the board decides to call for a levy increase, it has until Aug. 23 to approve it.