Medical Lake School Board inks school year budget

The Medical Lake School Board approved a new school budget on Tuesday, July 30.

The details were outlined for board members by district staff at a public hearing held before the board’s regular monthly meeting.

The $5.2 million 2019-2020 district budget represents a $600,000 revenue shortfall the district is offsetting by dipping into its general fund.

That same scenario is built into the district’s four year revenue projection that, assuming nothing changes, will nearly deplete the current $3 million general fund by 2023 academic year, according to budget documents.

But district officials didn’t express concern about a projection that relies on a variety of unknowns — at least for now.

One of the budgeting challenges is projecting revenue. The four-year budget assumes 2 percent revenue growth from state funding, and zero from the district’s federal funding sources.

“Federal revenues aren’t keeping up with our increases within our salary schedule,” Chad Moss, director of finance, told the board. “And state revenue is not enough to offset that.”

But Moss noted that Medical Lake remains in a good financial position at the moment, especially compared to other districts that are in the red financially, forcing layoffs and other budget cuts.

Superintendent Tim Ames told the council that state school superintendents continue to lobby the legislature for relief, such as increasing the number of funded employees under the so-called “prototypical school model,” also known as basic education.

Most districts employ more employees than are funded under the basic education model.

While Medical Lake is currently funded for 75 classified employees, such as bus drivers and paraeducators, it employees 106. It also has 132 teachers and counselors, known as certified employees, but is only funded for 90.

Ames expects to see some savings “trickle through” as school administrators keep up the pressure on lawmakers in Olympia.

Under a worst-case scenario the district would eventually begin looking at cost-cutting measures through attrition and program cuts, he said, but such measures weren’t anything he expected during the coming four year budget projection period.

“There’s ways we can save money without basically even cutting programs,” Ames said, noting the districts biggest concern is enrollment, which has been edging lower in recent years.

While enrollment has remained relatively steady at about 1,825, Fairchild Air Force Base remains a wildcard, Ames said.

“We’ve had a weird pattern, especially with Fairchild,” Ames said. “Last year we lost about 50 kids and dropped to about 1,775 (total student enrollment). But 44 of those kids were from Michael Anderson.”

Michael Anderson is a MLSD elementary school that serves military dependent students on Fairchild.

“That was very unusual when we’re hearing they are building up the base with another squadron,” Ames said, noting the district remains unsure exactly how many school-aged dependent kids will arrive with the new squadron, and how many will be attending Michael Anderson.

An April Air Force Times article, referencing an Air Force news release, projected as many as 1,000 additional airmen and their families are expected to move to the area.

Another relative unknown is a new state mandate that school districts provide employee benefits through the State Employee Benefits Board, or SEBB. It remains unclear how that will impact Medical Lake’s budget.

“And it continues to be (unknown) everyday,” Ames said.

In other business, Ames reported that the district had negotiated a 4 percent pay increase for classified employees, such as paraeducators, secretaries and bus drivers, after six hours of negotiation with Public School Employees union representatives.

The board also passed on first reading two policy changes. The first was related to district staff and student interactions on social media, which essentially bans “liking,” “friending” students. Necessary interactions should be done by other means, such as texting, Ames explained.

“It’s a safeguard for kids,” he said.

Board member Felicia Jensen noted that the policy also protects staff.

The second policy related to disciplinary action and employment recommendations for current staff, or past employees terminated for inappropriate conduct, and failure to disclose similar past issues during the application process: the district won’t provide a recommendation for those who engaged in sexual misconduct with students.

Lee Hughes can be reached at lee@cheneyfreepress.com.