Northfield Schools Superintendent Chris Richardson posted this letter on the District’s website yesterday.
We believe that the combination of lower revenue and inflationary expenditures will result in a $2,400,000 structural deficit (expenditures exceeding revenues) for 2011-12.
Even with the purposeful spend down of $1,666,000 of our District fund balance to the minimum recommended by our auditor, our review shows that our revenue will not equal the expenditures that have been forecast for the 2011-12 year. If no other action is taken, we anticipate a deficit of approximately $705,000 at the end of the 2011-12 school year that would further reduce our fund balance below a prudent minimum level.
In order to balance our revenues and expenditures and avoid further reduction of our fund balance below the recommended minimum, we believe we must cut approximately $705,000 from the 2011-12 budget.
For more, see:
Nfld News article: Budget Crunch: Schools face staff cuts
Nfld Patch article: Northfield School Board Prepares for Cuts in State Aid