In reviewing the summaries of the T/E school board committees, I was interested to learn from the Finance Committee report (below) that almost $1 million is coming back to the fund balance due to lower than expected medical claims. That’s good news!
Also it was confirmed at the Finance Committee meeting, that the state would be returning $1.3 million in funding back to the school district. Now there’s a question for school board candidates — what would you do with the $1.3 million? Would you restore some of the educational programming cuts in the district? If so, which ones? Foreign language in the elementary schools? Maybe Latin in the middle school? Or, would you suggest that the $1.3 million go into the fund balance?
Finance Committee, Chair: Kevin Mahoney
Prepared by: Administrative Liaison
The Finance Committee met on October 17, 2011. The Committee reviewed a draft copy of the District’s 2010-2011 ending fund balances provided by the local auditors. The administration explained how the fund balances are required to be shown as committed, assigned or unassigned on the audited financial statements according to new GASB regulations. The Committee reviewed the fund balance commitments and agreed with the amount shown in the medical stabilization commitment and the fund balance from the athletic fund should be committed. The administration explained that due to lower than expected medical claims spending from the self funded health benefits plan, expenditures would be about $947,000 less than projected resulting in an addition to fund balance.
Next the administration presented the results of the September Treasurer’s report. According to the report the District will be receiving $1.3 million more in State Revenue during the 2011-2012 fiscal year than was originally anticipated and budgeted. All other revenues and expenditures are within the budget amounts. The Committee discussed how the additional State revenue would be used which included possibly reinstating cuts made to the educational program to balance the 2011-2012 budget or using less budgeted fund balance to balance the fiscal year. The administration presented the proposed reinstated budget cuts that they were approved by the Education Committee. The Finance Committee asked that the proposal to reinstate these budget cuts be presented at a future Board meeting.
The Committee also reviewed the budget calendar, paying special attention to the due dates that relate to the Earned Income Tax (EIT) Study Group and discussed how EIT revenue sharing with the Township would work. Finally the Committee reviewed the budget projection model and asked the administration to make a few changes to the assumptions for future review of the model.