Geneva school board mulls ins and outs of budget
Is the Geneva school district setting aside too much or just enough money for rainy days?
Two residents questioned the school board Monday night about a $35.4 million cash-and-investments balance the district projects to have on hand as of June 30, 2009, the end of the 2008-09 fiscal year. The questions came during a hearing before the school board adopted the 2008-09 budget.
"That just seems like a lot to have in there," said Bob McQuillan, who ran unsuccessfully for a seat on the board in 2005.
Board member Bill Wilson and President Mary Stith said the district set a policy several years ago to have a reserve equal to 35 percent of expenditures in the district's operating funds - which are education, tort immunity, operations and maintenance, transportation, retirement and working cash.
The working cash fund alone has $14 million; it is used for in-house loans to other funds, to cover bills while the district waits for property taxes to arrive.
When McQuillan drew comparisons to business and home budgeting (saying the $35 million would be labeled a profit in the business world), Wilson countered that personal finance advisers often recommend people should have an amount equal to at least three months' expenses socked away for emergencies.
McQuillan also asked the board to think long-term about spending, noting that with housing sales having slowed, property values are likely to drop. If values drop, that could limit how much taxing districts can collect from taxpayers.
Overall, the $147.1 million budget includes $36.2 million in salaries; $3.7 million for operations and maintenance; and $1.9 million for transportation. It also features $55.6 million for construction.
The district opened a new school, Williamsburg Elementary, in August. It is renovating Harrison Street Elementary School, and is building another elementary school, Fabyan, near the Mill Creek subdivision. That school will open next fall.
Local property taxes are expected to pick up slightly more than 77 percent of the tab, with state money chipping in about 8 percent.
The budget year runs from July 1, 2008 to June 30, 2009. State law requires school boards to file budgets by Sept. 30 each year.