By Jolene FarleyThe Hills-Beaver Creek School District, along with other districts across the state, is struggling with cash flow and funding issues. At a Monday meeting, the School Board and administration discussed how to avoid a projected $100,000 to $150,000 shortfall for next year’s budget."We’re not the Lone Ranger when it comes to this," Superintendent Dave Deragisch said.Some districts are borrowing money to pay their bills from month to month, according to Deragisch."It’s not just a rural school district or a small school district problem," he said. "It’s statewide."When Deragisch asked the board for ideas on possible cuts to help balance the budget, board member Tim Baker said he had been contacted about what not to cut. Someone asked Baker to go to bat for the Early Childhood and Family Education program in the district. Deragisch said cutting that area wouldn’t do the district any good because they had funds the state would take away if they weren’t spent."I think those areas are important to future enrollment," said board member Matt Larson.Chairman Alan Harnack said that the district has the lowest excess levy in southwest Minnesota.Board member Lois Leuthold said the district doesn’t spend frivolously. "It’s always been run bare bones — what’s necessary," she said."I really do think people do know we are not just spending money, to spend money." Deragisch told board members they have two choices. "We either have to cut or we have to raise revenues," Deragisch said.Every $100 raise in per pupil unit levy equates to an extra $35,000 in revenue for the school. The levy is currently set at $180 per pupil unit. Special education billDeragisch informed the board that it appears the district owes a $55,684 balance to the Luverne district plus $250 extra. The board had disputed the charges, and a third party mediator from the Pipestone Special Education Cooperative reviewed the bills from the 1999-2000 and 2000-01 school years. "After their review they came up with we owe them $250 more than we were charged," Deragisch said."They reviewed every minute of every day. It’s looking like we are going to pay."At an October meeting, the board agreed to pay $83,799, in addition to a $20,000 payment the district had already made to clear up bills from the 2001-02 and 2002-03 school years. The bills stem from H-BC students that open enrolled to the Luverne district. The student’s home district is required to reimburse the district where the student open enrolls for special education and other costs.Power outageDeragisch noted there were added food expenses for the month due to a fuse for the walk-in cooler at the high school that failed on a Friday or Saturday. The food in the cooler spoiled over the weekend. After the problem was discovered, Deragisch went to the grocery store and purchased items so an alternate meal could be prepared. "Last week’s lunch menu was a little off," he said.
