Hazelwood School District Sees $7.5 Million Deficit in 2013-2014 Budget

Despite a $7.5 million deficit in the 2013-2014 school year, Hazelwood School District officials feel confident about their budget outlook for the next year.

The Hazelwood Board of Education approved a $197 million operating budget Tuesday night, which included the deficit.

The deficit doesn’t come as a surprise to board members or administrators as it was an expected hurdle for years, according to Assistant Superintendent of Finance and Facilities Dwight Lindhorst.

Lindhorst said his estimates have local, state and federal funding decreasing, which has caused part of the problem. For instance, Lindhorst estimates that the assessed valuation from St. Louis County will have an approximate 4.5 percent decrease or $75 million. in addition, federal grants and other funding resources have decreased or diminished.

However, Lindhorst emphasized that the district has been preparing for the shortfall in recent years and has implemented cost-saving measures that will aid the budget.

He said that stimulus funding provided for the district had been placed in reserve funding for when revenues did fall off of the “funding cliff.” That growth in the operation balances, or reserve funds, has helped ensure that schools, programs and staffing levels remain where needed.

Lindhorst said that measures such as eliminating positions through attrition--not employees--not replacing buses for the next school year and other cuts has helped with the deficit, which was originally projected closer to $12 million.

“We’ve been watching this budget very closely this year more so than we have in the past,” Board member Charles Woods said.

Last year, the board approved the 2012-2013 budget with a $2.9 million deficit.

Lindhorst emphasized that the assessed valuation and other projected revenues are solely projections, and that the actual assessed valuation will be received sometime in August or September, and the budget would be revised in October.

He said that the budget task force would continue to help in watching finances and finding other possible cuts.

Other highlights of the budget, according to budget documents, include:

• An increase of $8 million regarding salaries and benefits;

• Professional development decrease of $152,000