Early budget forecast is comparatively rosy

In contrast to last fall’s “doom and gloom” budget forecast, Cloquet superintendent Michael Cary was almost optimistic about the revised budget numbers during Monday’s Cloquet school board meeting.

It helps that the state budget office recently predicted a $1.6 billion surplus, swinging from a predicted $1.3 billion deficit.

Cloquet school district finance director Candace Nelis walked board members through the revised figures and predictions for the next school year. She based next year’s numbers on pre-Covid numbers for last year, along with averaging kindergarten numbers and considering input from families that switched to homeschooling because of the pandemic.

The worst-case scenario is that if negotiations end in a 2-percent increase to salaries and there is a zero-percent increase from the state, the district would face a $730,000 deficit next year. However, estimates of a zero-, 1- and 2-percent increase in revenue from the state with a corresponding increase to salaries would leave Cloquet approximately $350,000 in the red next year.

“And I say this every year, but because of the way we estimate [conservatively], every year we see about $250,000 to $300,000 of anticipated deficit just kind of disappear,” Cary said.

Funding from the state is an unknown at this point, but looks promising, he said.

“The good news is that the Senate, the House and the governor all have new money for schools built into their plan, so you know we’re going to see something,” Cary said.

Those budget estimates don’t include the last two rounds of stimulus money yet to come from federal government funds, Cary said, explaining that the school district is expecting around $1.3 million from the second round and has no idea of what kind of funds will come from the recently passed American Relief Plan passed by Congress and President Biden earlier this month. Right now they are earmarking any stimulus funds for future programming to help students recover from their year of hybrid and distance learning during the pandemic, Cary said.

In other matters Monday, board members denied a request for a two-year leave of absence request from a fifth-grade teacher in the district who wants to try a new career. “I think the intent is typically for medical leave or a sabbatical, or maybe a job where a teacher can learn new skills to apply in the classroom, things that are in the best interest of the district,” Cary said. The board agreed.

The board went into closed session at the end of Monday’s meeting for its twice-annual superintendent evaluation.