BALANCES UP IN JACKSON SCHOOL FUNDS

JACKSON -- An unanticipated increase in fund balances caused the Jackson Board of Education to begin discussion on future expectations during a meeting Tuesday night.

In an end-of-the-year report, administrators told board members the school district's fund balances have been growing steadily over the past two years as a result of conservative budgets and consistent growth in state and local funding.

This year, however, the district outperformed its expectations: The district completed its fiscal year that ended Tuesday with a total increase of more than $1 million in all balances.

The general fund, which is the account used to pay most of the school district's operating expenses, had an ending balance of nearly $294,418 more than the original ending balance estimate and a total general fund gain of $309,848. The gain was largely from larger-than-expected local revenue, said Dr. Terry Gibbons, assistant superintendent for finance and support services.

"We had more revenues than we anticipated and more expenditures than we projected," he said. "Our local revenue increase overall was better than $1 million. Overall, we're going to end up with a better financial position than we anticipated."

The district's fund balances are better than double the 10 percent of the total budget that is recommended by the Department of Elementary and Secondary Education. Board members asked administrators to seek opinions from other school districts about the desired percentage fund balances that should be maintained so they could begin long-term budget planning in the future.

Dr. Howard Jones, schools superintendent, said he believed the district was in a favorable position and should try to remain near or above its current balance level. However, he suggested the board consider deficit spending a small amount during the next fiscal year on one-time expenditures for supplies and furnishings for district buildings.

He said the district "would still be in good shape" with the expenditures and would not feel any multiyear effects from the move. Districts get in trouble when they deficit spend on personnel, but "controlled deficit spending" on one-time expenditures are not ill advised when a school district has substantial fund balances, he said.

"We know setting up brand new classrooms will cost additional funding, and we may have to project some deficit spending, but that has never bothered me if it's controlled and if it's for one-time expenditures," said Jones. "My advice is, if you're going to deficit spend, do it for a thing rather than for a person, because you can always defer that spending."