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‘Realistic’ financial projection requested by Liberty schools panel
Liberty
The fiscal commission prodded and picked at the latest revision of the Liberty school district’s five-year forecast Wednesday, telling the district’s treasurer it wants a more-detailed projection to ensure it is receiving adequate information for future cuts.
Roger Nehls, chairman of the fiscal commission charged with guiding the district out of fiscal emergency, said districts sometimes will use the forecast as a budgetary planning tool.
Although the numbers in the forecast may not be realistic, he said they build the budget around the projections.
“But at this point in time, I want a realistic projection,” Nehls told Treasurer James Wilson. “This is what is going to help us define the size and nature of our problems.”
Kristen Rock, the Liberty schools parent appointed to the fiscal commission, said there needs to be more detail because residents have expressed to her “skepticism” over past issues with treasurers. Wednesday’s meeting came a week after state auditors alleged that Liberty schools’ former Treasurer Tracey Obermiyer paid herself almost $5,000 illegally and made it appear the district had more money than it actually did.
The forecast, presented by Wilson, projected a surplus of $640,000 come July 1, the beginning of fiscal year 2013. But on its other end, it projected a deficit of $11 million in 2016.
“That’s a big problem to solve there,” Nehls said.
Nehls said most of that deficit comes from a rise in personnel costs.
The forecast, which is not due to the state until May 30, also projected benefit payouts will increase by $400,000 in 2013 despite cuts to personnel slated to go into effect next year.
In January, the board of education approved $1.2 million in personnel cuts, equating to the elimination of 16.5 jobs.
Wilson said the increase is due to unemployment insurance elevating by $250,000 from of the job cuts and because of projected increases in health-care costs and usage.
The district’s health- insurance plan has become one of the central issues on which the fiscal commission has focused.
“Health care is an important issue in terms of looking for some better balance for costs savings,” Nehls said.
Superintendent Stan Watson said in the past that the health-care plan is on the table when union contract negotiations begin. Negotiations are expected to start in the next couple of weeks, Watson said.