Orange : $2-Million School Deficit Projected in Fiscal ‘85-’86

Preliminary budget projections for fiscal 1985-86 at the Orange Unified School District suggest a deficit of at least $2 million, the official in charge of preparing the budget said Thursday.

But, said H. C. Tanner, assistant superintendent of business, “I think we can (balance the budget). It will take some work on the part of a lot of people and will require further belt-tightening.”

Spending for supplies and energy will be scrutinized, Tanner said. “We have to be sure that we purchase only the very necessary supplies and equipment, (and) we have to keep the total amount we spend on energy from increasing,” he said.

In addition, medical insurance will be monitored closely “to see that those costs do not increase exorbitantly,” he said.

In a recent report to the school board, Tanner said preliminary budget projections pointed to a $2-million to $4-million deficit. He cited an upsurge in utility, supply, fringe benefit and insurance costs.

A few weeks after assuming his position at the district late last summer, Tanner and Supt. Kenneth Brummel announced the discovery of an unexpected $4.5-million deficit for 1984-1985. To balance the current budget, the district cut expenditures.

By law, the deficit must be corrected by July 1, district officials said.

In his report to the board, Tanner noted that although state funds based on average daily attendance will increase by almost 6% per student, enrollment has declined. Additionally, he said, lower interest rates and a smaller beginning balance mean less interest will be earned.