Whose Money Is It?

Tsk, tsk. I thought I could leave you to talk amongst yourselves but I guess I was wrong. First let me explain what auditors do. They come in and look at a particular moment in time. They do not look back at our finances, and they do not look forward. They look at the information provided and tell us where we stand at that moment in time. Think about how your finances may look at any one moment in time. Sometimes we look like we we’re rolling in dough, other times it looks like we’re robbing Peter to pay Paul. Right now the auditors could probably certify me a deficit. But next week is payday.

I will preface this by saying that school finances are a monster of it’s own kind and both our CFO and my consultant make very compelling cases. Let’s first talk about what set asides are. Set asides are monies that are "reserved" for particular purposes. According to the rules of school financing we must spend at least 800K on textbooks and instructional materials and 800K on capital improvements. There are lines on our five-year forecast to account for this money. Above that we have "expenditures". This is where it gets tricky. Much of the set aside money is already accounted for in the expenditure lines in our five-year forecast. Mainly in supplies and equipment. Our CFO contends that she was conservative in these areas and would rather have leftover money, than not enough money. My trusted consultant says it’s money spent twice. Thing is, as a friend pointed out to me, leftover money is never used to the benefit of taxpayers. To some this leftover money was the difference between lowering the heat, cutting off cable and other budget cuts to cover a tax increase. The medium income in CF is $30K and some odd change. This is not an amount that can support another tax increase. Did I say levy? If "leftover" money is there, the taxpayers of this district have a right, and dare I say a need to know. For many elderly people I talk to, another tax increase could put them out of their homes. Homes they have owned 40 years or more. Social Security cost of living increases are lucky to go up $40 per year. Not nearly enough to cover the $40 per month increase the last new levy taxed them.

I was told the forecast will be updated in October. The auditors are here now. I checked my notes and know what I was told during my meeting with our CFO. Our bottom line should show a drastically better outlook in the next few years. While I respect the work of the districts Financial Forecasting Advisory Committee, I also am aware that they are not familiar with the ins and outs of school financing. A school treasurer offered to help me. A school treasurer who also happens to be a stakeholder in our district. Since I keep having policy and bylaws sent to me, I figure I should return the favor and cite bylaw 1320 part 2 letter I: In addition the treasurer shall help interpret the budget and district affairs under his/her supervision to interested members of the community.

I promised I would do what ever it took to see fiscal transparency and accuracy. I never claimed I could solve all our problems myself. I do not regret accepting help from someone who is an expert in the field of school financing. I am grateful the assistance was offered. I also think we have a wonderful CFO. I was told at our meeting that she was told to put the set aside money in the forecast and leave expenditures where they are at. I believe she was told to do this. I’m sure October will show an agreeable picture of where we stand financially.

Lastly, some quick notes. Another special board meeting, executive session only was held Sunday. No action taken. At least it was a quickie. In at 2PM out at 2:30PM. As I understand it, action will be taken at next Wednesday’s board meeting. And I didn’t want to have to do this but….If the name calling and personal attacks, assumptions about who’s who, and mud slinging doesn’t stop, I will have to start censoring posts. I goes against my grain to do this but you guys are worse than my children. Since I cannot put you in the corner or ban you from the playstation 2, I will start removing posts that are attacking people. Discuss and offer ideas and insight. Views on issues and debate. But please stop the pettiness. It serves no useful purpose.