IRON RIVER—That was then…. “financial situation in disarray. District finances nearly unauditable….projected negative fund balance…a mere two days of expenses in reserve.”

Now, as West Iron County Board of Education members reviewed an amended 2009-10 budget at its Feb. 22 meeting, Business Manager Amber Laturi pointed to a fund balance of $553,050 – $335,000 more than the original budget. Revenues were in excess of almost $500,000 from expenditures.

“It reflects the hard work, discipline and considerable planning on the part of the board, administration and staff,” said District Consultant Rick Kent, in his remarks to the board.

Revenue increases were seen due to the American Recovery and Reinvestment Act (ARRA) stimulus money; the closing of the middle school and, Kent said, “reviewing every aspect of district operations to implement efficiencies and cut out wasteful spending.”

however, Kent cautioned that considerable challenges will impact West Iron in the next year. Stimulus revenue will end in June, 2011. The middle school closure was a one-time situation. Enrollment will continue to decline, although at a slower rate. The state is projecting a decrease in per pupil funding. The bottom line, Kent said, is a total of $832,000 in lost revenue.

“The students, staff and parents should be proud of the overall condition of this district,” Kent said, “but there’s a hard road ahead.

“Change will be necessary. There is a ‘new normal’ as to how school districts will operate.

“We can’t do business as we have in the past.”

Kent included three areas in his assessment: consider the future closing of Bates School; develop a three- to five-year plan for technology and bus replacement. There is the possibility that, in the future, sinking funds may be used for bus replacement.

Board Member Rob Possanza also cautioned, as a businessman, the board to look carefully at health insurance and retirement costs. In business, he said, these costs should be 6 to 8 percent of operations. The school is spending over 20 percent of its income on these two areas.

Board President Roy Polich also commended the new school administration team on its work. Addressing the issue of health insurance, he added that staff should not look at the issue as “administration against staff,” and that the district should continue to strive to keep the quality of education a priority.

The board tabled approval of the amended budget, as members wanted to take time to look closer at particular areas.

An agreement as to the operation and maintenance of Nelson Field was approved. Polich said that the city had OK’d a proposal on Feb. 17. In the proposal, West Iron County agreed to pay 25 percent of all gate receipts into a fund managed by the Iron River city manager and West Iron’s superintendent. These funds would be used for repair and maintenance of the field. As there was some confusion as to cutting the grass, a map would be developed.

Polich said the district needed to look at ticket prices in the future.

“This is good for everyone,” he said. “It gives Nelson Field back to the community. It’s a community field, and it won’t go back to any one entity.

“It’s nice to get back to education and off the Nelson Field and middle school issues.”

A motion to approve the agreement was passed.