Difficult and uncertain times are ahead for the Linn-Mar Community School District's budget, as Business Administrator Dave Nicholson reported on his budget preparation process to the Linn-Mar school board at its meeting on Monday night.

According to Nicholson, Governor Chet Culver's 10 percent budget cuts will continue through the next fiscal year, and the allowable growth rate for fiscal year 2011 will remain at 2 percent, although there is uncertainty whether or not any of that 2 percent will be funded by the state.

Nicholson said that it would be best for the district if that 2 percent allowable growth is maintained because anything less than that could drastically impact the district's spending authority.

The statewide budget cuts from the governor could potentially hurt the Linn-Mar budget by anywhere from $300 to $400 per pupil, but Nicholson and others are uncertain as to how things will pan out.

Many additional factors will go into Nicholson's preparations for the fiscal year 2011 budget. The state is cutting the Instructional Support Levy, which cuts about $260,000 from the Linn-Mar budget.

The state is maintaining appropriation of property tax relief, and there is a possibility that Linn-Mar would receive some of that relief: initial estimates are that it would save 33 cents on property tax in the district, but Nicholson is not projecting it to be that high.

Nicholson also stated that the district's trend toward increasing enrollment will be helpful with the budget. Other factors that will significantly impact the budget include negotiated settlements and utilities.

Nicholson projects a 5 percent increase in the district's taxable valuation, a 3 percent increase in non-salary budgetary items, and no increase in the district's levy. He said the district needs to close the gap between budget expenditures and state budget-driven spending authority, so as not to have the problem of running out of spending authority.

Nicholson will also make sure the management fund has enough in it to fund the early separation and benefits packages. The preliminary budget will be ready for presentation to the board on March 8, and the final budget will be ready by the April 5 board meeting. The complete final budget is due to the state by April 15.