The Española School District’s budget is currently overspent in two funds, according Finance Director Janette Trujillo, who presented the Board Feb 12 with current budget numbers at a work-session.
“We’ve been trying to watch our spending as much as we can,” Blea said. “There are some things that can’t be avoided, but I think we’ve limited our operational spending to really essential things.”
Many funds appear to be low. However, Blea said this is not a problem because much of the budget is spoken for, or encumbered as the budget states, but not yet spent.
For example, the general administration and school Board budget has $28,006.88 or 3.62 percent remaining of the original budgeted amount. To date the District spent $420,380 of the $773,048 budgeted, but encumbered $324,660.16 of the remaining $352,667.04.
If the District is able to keep costs down for the rest of the year, Blea said they may not have to spend the entire amount encumbered. He gave the example of heat and electricity. If the winter stays mild, they may not have to spend the entire amount planned for those purposes. The same goes for the rest of the budget.
However, with encumberances, the maintenance fund is currently over-encumbered by $78,985.90, or 1.38 percent over.
“We knew that was going to happen because there’s no 2-mill levy,” Blea said.
While normally the mill levy funds would cover the cost of maintenance, its absence left a hole in the budget, which the District plugged with money from the operational budget. However, Blea admitted they apparently did not put enough money into that function to make up for the gap, and more funding will have to be diverted to cover it.
The budget for the cafeteria system is overspent by $8,023.76. Including encumberances, the balance of the fund is over-budget by $138,954.08.
While the District’s cafeterias rarely pay for themselves, Blea said last year the cafeterias overran their budget by even more.
“The intent is that it should be a self-sufficient program,” he said. “But I don’t think it’s been that in this district for quite a while.”
Blea added the District is not alone in its problem of cafeteria cost overruns. Many other districts have to supplement their cafeteria program from the operational budget as well.
If the District can keep costs low, Blea believes the District can finish the year with enough balance to hold it over the summer until state funds start flowing again in the fall.
In addition, the state adjusted the District’s funding down based on a revised formula, cutting current funding by $413.849.96.
However, the District also caught a break. The budget will be helped by the influx of $153,974.37 from the federal government’s forest reserve fund.
Looking toward next year’s budget with declining enrollment cutting into state funding, Board Vice President Andrew Chavez said the District faces a thin budget this coming year, and money from the 2-mill levy won’t start flowing in until early 2014. However, with creativity and tight budgeting, he said he believes the District will make it through.
“We can do it with the assistance of staff on board, with some creative decision making on everyone part,” Chavez said. “It’ll be some tough times, but I’m confident we’ll be good.”