Big topic, right? Whew. I wanted to offer some insight into my thinking on how Hallsville can work to ensure our district grows in our financial security.
Most broadly, there's been a lot of discussion in the last year about the district's reserves. We have been spending more than we've taken in for more than 10 years due to extremely high reserves dating back to the early 2000s. What's the right percentage to have in reserves? We're projected to have 19.36% of a budget in reserves at the end of this fiscal year. This is more than we had last year. In Superintendent Downs' report from March, he's asking the Board input on in the coming months. Across-the-board, he said the average is 27% statewide. I would recommend and work toward a fund balance of no less than 25% and no more than 30%. This gives cushion for a potential state downturn, and is in-line with state averages while also not building unnecessarily high reserves that could be spent on bettering the educational environment for our children. As everyone knows (or should), the board approves on a monthly basic, checks and PCard purchases. Questions are sometimes asked on these specific expenses. This is important -- however, it may have unintended consequences on lowering morale. For example, at the March meeting, it was noted that supply budgets were significantly under-budget. In other words, money was budgeted for supplies that had not yet been spent. Teachers are likely buying these out of their own pockets due to the budget situation and possibly in some fear of being questioned by the board. The Board must be on the look-out for spending concerns. However, it's probably more important to spend more time looking at broad budget areas to see if something is out-of-wack (or to be put better, inaccurate) in the budgeting process. So, perhaps this could be a good idea: On a quarterly basis, the Board is presented with the budget Year-To-Date percentage expenditures. This would serve three-purposes. First, it allows the board to focus on the macro budget in addition to the individual expenses. Secondly, it allows better understanding of the district's finances by the board as a whole throughout the fiscal year. Lastly, it allows for the public to see and better understand how transparent the district is. Doing this has potential downsides to be aware of. Some purchases are heavily-weighed in particular quarters. This also would potentially open faculty/staff/administrators to being 'nervous' that if they don't spend their budgeted amounts to worry: will the board reduce my budget? That said, I think the positives outweigh the negatives. This allows the public to see an increased willingness to be open. Good news here is that Mr. Downs has already thought about this and a version was presented for the March meeting and can be found here. This summary is very macro, and perhaps it can be tweaked some as time goes on -- but this is a good start to understanding the full budget picture of the district. I'm encouraged by the budgetary projections focusing not just in this fiscal year or the next, but projecting costs in the next 5-years. This allows for more informed conversations around medium and long-term needs of the district and thinking about the financial implications of those needs. These projections need to continue. Part of having a secure financial status means taking care of what we have in our infrastructures. In my previous job, I discussed the importance and growing cost of deferred maintenance of buildings. As a district, to be financially secure, we must be willing to invest in the mundane and even sometimes costly things to prevent larger costs down-the-road. Fixing leaks in buildings, doing the regular maintenance brings down the long-term costs. This is proven in our everyday lives in how we treat our cars or our own personal homes. We must do the same to our school buildings. This doesn't mean just to fix the air conditioners as they break. Yes, this is part of it -- but we've been acting like this is the whole picture. And yes, unfortunately, looking and taking care of deferred maintenance issues on our facilities costs money. To wind down this post, I fully believe that passing Proposition 2 will help ensure that we have a healthy financial status as a district. I attended nearly all of the school board work sessions and am fully invested in the idea that our district and students need this tax levy increase. If elected and Proposition 2 passes, please know that I commit to faithfully being aware that everyone is sacrificing to provide this funding for our students. This responsibility is not a small one -- and one I would take very seriously. Tomorrow: Relationships With City/County Leaders
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AuthorHallsville resident. Foster Parent. School board member. Politico. Jesus Follower. Cardinals Fan #MizzouMade Archives
June 2020
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