Mathews schools project deficit of $3M

May 24, 2010 at 12:00a.m.

BY JORDAN COHEN

VIENNA—A financial forecast compiled by the treasurer of the Mathews Local School District projects a $3 million deficit by the end of the 2013-2014 school year.

“We’re spending more money than we’re bringing in, and that’s the biggest problem,” said Lee Seiple, Mathews schools superintendent. “But I am surprised that we’re projecting that much in five years.”

The forecast by Teri Andrika, district treasurer, projects no deficit for the current and 2011-2012 school years, but the district moves into red ink after that. Andrika estimates deficits at $78,000 in 2012, $1.2 million in 2013 and $3 million in 2014, deficits that Seiple says the district cannot sustain.

Asked if the district may have to go back to the voters for more money, the superintendent said the subject is likely to come up during a special board work session on June 8 to discuss the financial forecast.

Earlier this month, Mathews voters approved a 7.8 mill-reduction and replacement levy that will generate $1.1 million. “I don’t know what we would have done if the levy hadn’t passed,” Andrika said.

Seiple said that one of the reasons there is no deficit this year and next is that nine teachers and classified workers have retired, another teacher has resigned and the board is not filling their positions.

“That’s helping get our deficit down,” the superintendent said

Mathews’ student population has fallen from a high of 1,900 in three decades to just 825. Seiple said other factors impacting the budget are increased operational and insurance costs. Andrika said the district has been able to reduce some expenses by completing an agreement that it will cut its natural gas costs by more than 40 percent.

In addition, 90-year old Neal Middle School, which is being kept open one more year, should have a positive impact on the school budget when it closes in June 2011.

“My [financial] forecast does not reflect the Neal closing until the board takes action because I can’t assume we’ll have fewer teachers,” Andrika said. During discussions earlier this year, Seiple estimated the district would save more than $800,000 by closing the building.

“We’re anticipating more retirements and changes in personnel because of the closing of Neal [in 2011],” Seiple said. “Each year you can make those cuts and reductions, it’s big dollars.”