District Could End Up Deficit Spending if Trends Continue
- 39 minutes ago
- 1 min read
by Trinity Gruenberg
The Verndale School Board held their regular meeting on March 2.
Fund Balance Policy
The discussion about Policy 714 started because some people were worried that the district’s goal of having a 50% unassigned fund balance was no longer realistic given the current financial situation and declining student enrollment.
Superintendent Jeannie Mayer explained that if the trends continue—like fewer students, small increases in state funding, and current spending—the district could end up deficit spending for several years. This could cause the fund balance to drop to about 21%, which is much lower than the old 50% target.
Mayer and Business Manager Jordan Anderson explained that the fund balance helps the district cover payroll, deal with delays in state funding, and manage unexpected expenses.
However, having so much money in reserve (50%) could make it hard to ask taxpayers for more funding.
They looked at different scenarios, including cutting about $150,000 in the next two years and changing the local optional revenue (LOR) tax rates. Even with these cuts and some increases in local revenue, the fund balance still stayed near 30–45% unless enrollment numbers improved or the state provided more money.
Board members Tyler Fisher and Tony Stanley liked the idea of having a range (30–45%) because it gives them a realistic plan and helps avoid quick cuts. Stanley wanted to ensure that the chosen numbers would actually work for the people managing the budget. Anderson mentioned that even 30% represents around $2.3–$2.5 million in reserves, which is enough to prevent cash flow problems...
