School board approves $3.9 million budget

By Michelle McLean
Hillsboro School Board members approved a $3.9 million budget for 2007-08, an increase of about $300,000 over the last school year’s budget.
Revenues for 2007-08 are forecast at $3.7 million, up about $50,000 from last year. Reserves amounted to $970,000 in June. Bitz expects to end the 2007-08 term with about $766,000 in reserves.
During the annual budget process, Bitz instructs board members that he estimates expenditures high and revenues low.
“I try to paint the worst case scenario,” the superintendent admitted, hinting the bottom line will almost always look better than his forecast.
Board members stood by their plan to levy 178.64 mills for the general fund.
In his July budget proposal, supt. Mike Bitz had recommended a three-mill tax cut, honoring an unwritten promise to reverse a 12-mill tax increase in 2005 prompted by a three-year tax dispute with American Crystal Sugar. The school district cut taxes by six mills in 2006.
Board members have debated whether an additional cut was warranted. Monday’s decision was “no.”
The district’s 2007-08 mill levy for all funds equals about 208.85 mills. One mill levied in the district raises about $10,224 in tax revenue for the school.
The budget represents an overall increase of 1.16 mills and — with changes in property valuations in the district — will generate about $83,670 new dollars in revenue.
The 1.16 mills also represents what the school district needs to pay its share of city special assessments for the 2006 water project. The district’s special assessment bill was $11,860 and will be paid in full this year.
For comparison purposes, the average mill levy for North Dakota school districts was 220 mills in 2006-07.
The final budget must be forwarded to Traill County auditor Becca Braaten by October 10 for inclusion in the 2007 tax bill sent out in December.

More numbers
Board members reviewed an enrollment report from Supt. Bitz. According to the count provided state education officials, there are 401 students enrolled at Hillsboro schools — two less than last year’s official numbers.
By comparison, enrollment figures over the past five years have hovered between 426 in 2003-04 and 401 this year.
The largest class this year is the 9th grade with 39 students. The smallest class is the 4th grade with just 20 students. Other counts are kindergarten, 36; first grade, 32; second grade, 26; third grade, 33; fifth grade, 36; sixth grade, 25; 7th grade, 33; 8th grade, 26; 10th grade, 31; 11th grade, 36 and 12th grade, 28.
There are 210 boys and 191 girls in Hillsboro schools. The senior class has the greatest disparity with 20 girls and just eight boys.

More help needed
Board members honored a request from the Hillsboro Recreation District to contribute $5,000 to the organization’s operating budget. The city and park board also responded with donations of $2,500 each.
The one-year old Rec District will ask Hillsboro city voters in June to further fund the group with an additional six-mill levy. Voters approved creating the district and imposing a 2.5-mill levy in June 2006. Funding remains an issue and the Rec District relies on donations from the school, the park board and the city as it works to become more self-sustaining. Last year, the school provided $6,000.
Tracy Buzick, a school board member who serves on the Rec District board, promised fellow school leaders he would not be back to ask for more money in 2008.
The Rec District, even without the mill levy increase, could operate through 2008. Programs would have to be cut in 2009 if additional funding is voted down.
Buzick cautioned that much of the Rec District’s funding in 2006 and 2007 were large, one-time contributions. The 8.5 mill levy is the maximum allowed by law and raises about $16,800 a year. The Rec District’s operations cost $27,750 in 2007 and participant fees added about $6,800 to revenues, still not enough to cover expenses.
He admitted the group may never be self-sustaining and may always be forced to rely on help from public groups like the city, school and park board to provide the quality programs the community has come to expect.
“I’m not going to lie and say I won’t be back but I won’t be back next year,” Buzick said.
In other matters, the board:
n Reviewed policy recommendations for allowing sexual offenders on school property, conducting background checks on school employees and limiting the use of cell phones by students during the school day. The topics will be discussed at the board’s October 15 meeting. Any policy change requires a reading at two meetings.
n Noted that the district spent about $2,000 on shirts for employees as back-to-school appreciation gifts.