ESCANABA — The Escanaba School Board reviewed the district’s final budget amendment provided by Director of Business Services Kevin Pascoe Monday night. Pascoe showed the board a healthy projected general fund balance for the fiscal year 2019-2020 of 10.1% — normally it is around 5%.

Later in the meeting Superintendent Coby Fletcher explained how COVID-19 blew a hole in the budget and how there may be issues because of the lack of state funding. He explained budgeting for the 2020-2021 school year is unlike any other.

“It is a very strange year for budgeting,” Fletcher said. “…we usually close out the current year and start forecasting what things are going to look like for the next fiscal year.”

Fletcher said there are two major problems the school district is dealing with, current and future year state revenues are far less than anticipated. Due to COVID-19, there is an anticipated $1.2 billion shortfall in the School Aid Fund for 2019-2020, which comes to approximately $650 per student or $1.2 million total for Escanaba.

“We kinda figured our state funding would be about $24 million, looks like it’s gonna come back more along the lines of $22.8 million,” said Fletcher. “…so we are short for the current school year.”

Fletcher said the state directed school districts to maintain employment of staff through the school year and not lay anybody off to continue to receive state funding. Personnel accounts for 80% of Escanaba’s expenses.

“We didn’t have any opportunity to make any moves to save large amounts of money, other than the discretionary salary freeze we implemented pretty much right away,” said Fletcher.

The state told the school districts to continue spending money, as if they were going to be reimbursed, and now the money is not coming in, said Fletcher. While creating the 2020-2021 school budget they are facing three challenges — how will the state address the current year shortfall, how will the state address next year’s shortfall, and when will they tell school districts.

School districts are legally required to close out the school year and adopt a 2020-2021 budget before the end of the month. Fletcher will present finalized budgets to the board in a special meeting June 29, at 6 p.m. in the courtyard room in the Upper Elementary.

In other business the board:

– Heard a COVID-19 update regarding school activities. Escanaba’s Director of Food Service Nancy LaFave told the board since providing curbside meals at the high school, they handed out 102,610 meals. The summer feeding schedule, Tuesdays – noon to 2 p.m., will continue up to early August, and then LaFave will look at fall.

Fletcher noted fall sports are slowly starting and the state hasn’t provided a specific plan on how to open schools.

– Voted making Board Treasurer Jim Beauchamp board vice president, filling Kathy Jensen’s position after leaving the school district. Board member Todd Milkiewicz was then selected as board treasurer.

– Approved the 2020-2021 meeting schedule starting July.

– Approved hiring Mackenzie Leisner, third-grade teacher, and Aubree Peterson, first-grade teacher.

– Continued discussions regarding changing board member terms from six years to four. Three terms will end this year. Deadline for nominations is Tuesday, July 21, at 4 p.m. for the Nov. 3 election.

– Approved Roy Ness Contracting and Sales’ bid to do work in the high school and Lemmer Elementary. The work is due to reconsolidating schools after closing Soo Hill Elementary. The work is budgeted from money saved after selling Wells and Soo Hill Elementary schools over the passed few years.

– Approved Fletcher’s contract with changes he recommended, including no raise this year, and a five-year contract instead of a three-year contract. Fletcher said a five year contract would provide more security.

“In my current contract, I would be due for a 2% raise this year, and I don’t feel like this is the year that I want to accept a 2% raise,” said Fletcher. “…We actually have to change the contract.”

Fletcher’s annual salary will stay the same, the 2% increase would be re-implemented in the 2021-2022 school year (depending on the board’s rating of Fletcher), and an added off-schedule longevity stipend.

“I want to be clear, these are one time stipends … in-line with the commitment I’ve made with the district, I’m asking the board to consider a stipend of 3% of my annual salary upon completion of five years’ service to the district … and 10 years of service,” said Fletcher.

Other changes included wording changes.

“I want to make sure what’s in my contract is inline with what the district practices,” noted Fletcher.