When a surplus isn't a surplus...

Although an unanticipated $500k is good news, calling it a surplus portrays a misleadingly picture of the budget.  In more accurate statement would be that our deficit for the coming year has shrunk from $1.2M to $700K.  An improvement, but it doesn't mean that we will be able to undo much of the damaging cuts we plan for next year.

So what happened?  After we cut $1.2 million from next years budget (reducing programs and making significant cuts to support staff) based on projections, several factors helped reduce the gap:  open enrollment came in higher than expected, we closed the deal on the lease with Maywood, and there were fewer retirements than expected.  Combined these things reduce the deficit by $500K.

One should note that fewer retirements does not save the district money over the long term.  We have an early retirement payout because it saves the district money: it takes a highly paid senior teacher off the payroll to be replaced by a lower paid new teacher.    Although rising health care costs have dramatically changed the equation, I believe it is still no worse than a wash.  So the fewer retirements this year are only a reprieve, and may increase future deficits.