LEHMAN TWP. — Additional revenue and unexpected savings helped Lake-Lehman School District craft a 2020-21 budget that looked even better than the preliminary budget passed last month — and that budget had been an improvement over an earlier version in February that anticipated a big tax increase.
The School Board voted at Monday’s meaning for a plan that spends $32.67 million and only takes in $31.3 million. Business Consultant Tom Melone outlined changes in the past month that not only avoided any tax hike, but could mean a larger than-expected fund balance at the end of the fiscal year June 30, 2021.
The proposed final budget passed last month had a shortfall of $2 million, while the final budget passed Monday has a shortfall of $1.3 million.
With schools closed from mid-March due to the COVID-19 pandemic, the district saved about $250,000 in salaries and benefits, partly because of reduced need of substitute teachers, Melone said. The closure also saved about $100,000 in supplies, and about $175,000 in transportation spending.
Health insurance costs also came in about $600,000 below expected costs this year, and the district lowered the amount being budgeted for next year from $5.2 million to $4.5 million.
And the district anticipates about $491,000 in grants from federal dollars provided to help districts with the added costs of dealing with COVID-19.
All told, the budget passed Monday projects the district will have enough of a fund balance to cover the shortfall in spending over income, and still end with a fund balance of about $3.8 million next June.
The board also voted to drop penalties for property tax payments made after Nov. 13.