2 school districts anticipate red ink

The $106 million in new money legislators gave schools might actually leave the state's two largest districts millions of dollars in the hole.

Jordan and Granite school districts are looking at double-digit increases in health insurance. They also will need millions of dollars to live up to step and lane changes on the teacher salary schedule. And the unrestricted money they'll get won't do the job.

"We're probably somewhere about $5.3 million short . . . that's just what we've got to fund," Granite Superintendent Steve Ronnenkamp said. "My guess is probably most school districts will be faced with something very similar, and it's going to be a very tough year."

Public schools will share a $2.2 billion budget next school year. That includes more than $106 million in new funding — in some ways, beyond the expectations of Davis School District, spokesman Chris Williams said.

Some of the new funds are restricted. For instance, $17 million will fund a bonus for district employees. The State Office of Education last week expected that to total $300 or $400 per person.

Lawmakers also gave a 1.5 percent increase in the weighted pupil unit, the state's basic per-student funding formula. The WPU funds operating expenses and is viewed as helping determine teacher raises.

But half a percent of the WPU was expected to go to fund rising health-care costs, Sen. Howard Stephenson, R-Draper, has said.

Some districts say those costs will require much more.

Jordan District is looking at a 10 percent to 12 percent increase in health insurance costs, which could reach about $4 million, said Burke Jolley, deputy superintendent over business services.

The district is getting about $3 million from the WPU increase, he said, leaving the district $1 million short.

The district also needs $4.6 million to pay for teachers' step and lane changes. Each percent of a pay raise on top of that would cost $2.4 million.

"Even if we didn't give any (pay) increase . . . we'd be at least probably between $6 (million) and $7 million short," Jolley said. "It's still real early and anything's possible. But we know to fund everything that will be asked of us we'll have to cut programs or raise taxes or some combination thereof."

Other districts haven't run preliminary numbers yet. But Davis District next week will convene a committee to groom the budget to meet district needs, Williams said.