Cape district prepares for financial unknowns

Cape Henlopen officials say district finances are in good shape now, but future revenues and state funding levels remain uncertain due to COVID-19.

At the May 14 school board meeting, Superintendent Bob Fulton said the district receives 95-97 percent of expected tax revenues each fall, but officials are unsure what revenues will be this year due to the pandemic. 

Fulton said the state may also adjust school district funding because state revenues have been hit by the pandemic. 

“There’s a lot of uncertainty right now, and we’re being cautious with spending and putting money away,” he said. “We knew we were in a tough situation already because the March referendum was canceled. It’s still not the right time to have it, so we’re holding off on that.”

If passed, the operating expense referendum would have increased taxes by about $64 a year and generated $3 million for the district.  

The canceled referendum hasn’t stopped growth in the Cape Region, and increased staff puts pressure on the budget, Fulton said. Typically, the district sets aside $5 million to cover staff salaries from the beginning of the fiscal year July 1 until tax revenues are received in the fall. This year, he said, the district needed to set aside $6 million.

Fulton said officials are reallocating line items in the budget and putting money aside in case the district receives less funding or revenue. With schools closed, the district has saved money on athletics, spring coach salaries, transportation, overtime, substitutes and other programs, he said.

Fulton said materials and technology may not be replaced on the usual schedule, but the district will still hire every teacher it qualifies for under state funding formulas to ensure low class sizes and quality instruction.

“The heart and strength of our district is in our people, the staff we hire in our classrooms, driving the buses, in the cafeteria, everywhere,” he said. “That’s something that needs to remain a priority for us.”