Anchor Bay projects $3 million surplus in amended 2024-25 budget, board hears

Assistant Superintendent Todd Rathbun told the Anchor Bay School District Board of Education on Jan. 22 that the district’s amended 2024–25 general fund budget shows revenues slightly above $81 million and expenditures of about $78 million, producing a projected surplus of just under $3 million.

The surplus would add to a beginning fund balance of roughly $14 million, Rathbun said, and the board has committed about $2.8 million from the sale of the Sugarbush property for future capital outlay. That leaves an unrestricted fund balance of about $14.15 million, or roughly 18 percent of expenditures, Rathbun said.

The numbers reflect several adjustments to assumptions made in the budget adopted in June 2024, Rathbun told the board. He said state sources declined by about $800,000—largely because the district did not receive a per-pupil foundation increase it had anticipated—but federal revenues rose by roughly $150,000 as some federal pass-through arrangements changed. On the expenditure side, instruction decreased by about $2.4 million—Rathbun attributed most of that to changes in retirement (pension) rate assumptions and some reclassification of staff costs into support-service function codes.

Rathbun described specific staffing and program changes included in the amendment: the budget adds a student-success teacher position at the high school and a restorative coach, and it reallocates several elementary instructional coaches into a tutoring/intervention role that is coded to support services rather than instruction. Pupil transportation rose by about $382,000 to reflect the purchase of several buses and the addition of camera systems, he said.

Board members asked for background on how the district rebuilt its fund balance. Rathbun and board members said the rebound from a low-point of roughly 3 percent several years ago to about 18 percent resulted from a mix of state funding improvements, enrollment stabilization after COVID-era losses, and conservative budgeting and spending practices. Board members noted the district’s policy goal of maintaining at least a 15 percent fund balance to avoid borrowing costs in the fall.

Why it matters: Board members said the higher fund balance gives the district more flexibility to fund classroom programs and strategic initiatives without jeopardizing liquidity. The board also has set aside committed capital funds from property sale proceeds for future projects.

What’s next: The board voted later in the meeting to approve general fund budget amendments for 2024–25 (see actions). The finance committee will continue to monitor revenue assumptions and the use of the committed Sugarbush proceeds for capital projects.