District's budget steady for this year; next year's budget uncertain

WORLAND – The Washakie County School District No. 1 Board of Trustees passed their budget for the 2020-21 fiscal year during their monthly meeting on Wednesday, July 15.

The general fund saw a slight increase from last year’s budget up to just over $25.8 million, from the $25.6 million that was budgeted for last year’s general fund. Total appropriations for the fiscal year total $42.5 million.

Business Manager Jack Stott told the board that they are in a good spot with a balanced budget. The budget has a positive reserve for this upcoming year that may allow the district to survive a large decrease in funding for at least one year, with a potential surplus at this point projected throughout the year.

“We are as positioned as well as we can be for that,” Stott said. “Our fund balances are about as high as they can go but we are limited by state statute, so it is not going to hurt to have a little bit of flexibility heading into the next year.”

Special revenue saw a large increase compared to last year of nearly $600,000. Superintendent David Nicholas reported that the fund increased due to a decrease in payments after March in the category to substitutes, less paid in fuel, and an increase of funding thanks to Coronavirus Aid Relief and Economic Security (CARES) Act funding. CARES funding totals around $440,000 at this time. Funding is meant to be spent on COVID-19 related items throughout the year.

Stott said that situations directly related to COVID-19 will have funding used through the CARES Act, and will not be used through the general fund.

Nicholas and Stott have both said that thanks to careful consideration by the board, staffing in recent years the district is in a good spot for this year. The adjusted staffing along the way to accommodate for declining enrollment over recent years has led to a balanced budget this year.

According to Stott, the district analyzes each staffing position as it opens and determines whether they absolutely need that position to be filled before opening up the position again for hire.

The district did not fill the positions at the Worland Middle School in social studies, science and technology departments.

According to Stott, WCSD No. 1 receives around 80% of its funding through the state unlike most other districts in the state. Nicholas said that if the state cuts more than the $250 million that has already been announced to be cut, he does not know how K-12 does not get touched in any scenario.

In 2015-16 the district had 1,355 students enrolled in the district, with a predicted student enrollment for this year being around 1,210. With the three-year average decrease expected to be an average in the 30s, the district may see a double whammy when it comes to less funding through enrollment and decreased funding through the state in potential cuts.

According to Stott, cuts in the future for the district would be expected to be in wages and benefits as that is the largest part of the budget by a significant margin, making up around 80% of the budget. Stott said that just because 80% of the 10% cuts takes place to wages and benefits one year, does not mean that same percentage would take place the next year.

“If you had consecutive years of 10% cuts, you are not going to take 80% of cuts from wages and benefits both years and 20% both years from the rest of that money,” Stott said. “You cut that the first year, you are not going to have much left to cut the second year without drastically altering your operation.”

Governor Mark Gordon has announced that there will be budget cuts over the next two years due to decreased revenue during the COVID-19 pandemic, but more announcements past his initial cuts have not been made yet.

Steps and lanes were approved for salaries the 2020-21 fiscal year.

The district’s valuation went up slightly with the valuation jumping from $106 million to $108 million.

The 2020-2021 budget for this year is as follows:

General Fund $25,814,409

Special revenue $5,443,083

Capital construction $2,293,397

Debt service $1,684,454

Food service fund $1,084,652

Insurance trust $328,154

Private trust fund $4,805,299

Pupil activity fund $505,612

Recreation district $585,602

Total appropriations $42,544,662