Ciaschi Dietershagen Little & Mickelson's Jerry Mickelson had bad news for Lansing's Board Of Education last week when he presented the audit for the fiscal year ending June 30, 2007. Fund balances are alarming low, and district spending was $21,000 over budget last year, with the school lunch program also showing a deficit of $9,000. "The
![Image](http://www.lansingstar.com/images/stories/2007pics/boe200710_mickelson.jpg)
Jerry Mickelson
decrease in fund balances is attributable to the excess of expenditures of $1,231,000 this past year," Mickelson said. "This is after the appropriation of some $506,000 from the debt service fund as a revenue source to the general fund, as well as a utilization of $200,000 of reserve funds as a revenue source. In addition the budget was over spent some $21,000."
This was no surprise to board members who have been metaphorically robbing Paul to pay Peter, using reserve fund monies for years to keep the tax levy low without significantly cutting budgets in key areas where expenses are high.
The largest area of expenditure is in instructional staff, which accounted for 73.9% of the budget in 2006-2007. The board has been reluctant to make cuts in teachers in the past several budget cycles, but with that segment weighing so heavily on the overall budget cuts in other areas have not been significant enough to match annual revenues from taxes and aid.