JACKSON SCHOOL DISTRICT CHANGES NAMES OF FUNDS

JACKSON - When Senate Bill 380 was approved earlier this year, it contained a minor provision that changed the names of the basic school district funds.

For example, the general fund was changed to what it was called many years ago: the incidental fund. The special fund was changed to the teacher fund.

Howard Alexander, business manager of the Jackson School District, said that even with the changes confusion and misunderstanding still exists over the purpose and function of each fund.

Prior to Senate Bill 380, the Jackson School District and most other districts had four accounts to receive money and pay the bills: the general fund, special revenue fund, debt service fund and capital improvement fund. With passage of Senate Bill 380, the general fund is now the incidental fund. The special revenue fund is now the teacher fund. The capital projects fund was abolished, and all money in that fund will be placed in general revenue.

Alexander said the two funds most often misunderstood by the public are the teacher fund and debt service fund.

"Both of these are restricted accounts," he said. "This means we cannot use the money in either account for any other purpose.

"The only thing that can be paid out of the teacher fund is the salaries of our certificated staff; our teachers, or anyone with a teaching certificate such as counselors, assistant superintendent and superintendent. This fund is also used to pay for their health insurance benefits."

Alexander said the debt service fund is used to pay off the district's general obligation bonded indebtedness.

He said: "An example is the bond issue that was approved for our new middle school. The bond issue that will pay for the building will be retired by payments from the debt service fund. Again, this is a restricted fund; the money can only be used to pay off our general obligation bonds and nothing else."

Last year the district budgeted $395,972 for debt service. The money came from the school tax levy ($250,387) and other taxes, plus $35,000 in earnings on investments. Another $82,411 came from the railroad and utility tax.

Alexander said the teacher fund is the largest of all the funds because it pays the salaries of the certificated staff. Last year the teacher fund was budgeted at $6,327,887, well over half of the district's total budget of $11,773,495.

Alexander said the 1993-94 budget is identical to the 1992-93 budget. He said '93-94 budget will be amended as soon as the impact of Senate Bill 380 on school financing is determined.

(All figures cited are based on the '92-93 budget.)

Funding for last year's teacher fund included $1,377,178 from the local property tax levy, $644,605 in sales tax revenue, plus amounts from other tax levies. Another $82,411 came from railroad and utilities tax levy.

The bulk of the teacher fund receipts comes from the state in the form of the minimum guarantee. Last year that amounted to $2,594,776. School officials hope to see a significant increase in that amount as a result of Senate Bill 380.

Another $269,634 in state funds for the teacher fund was used for exceptional-pupil aid, $27,783 for remedial reading, and $12,000 for gifted students. In some instances, the state money was matched by local funds to pay a portion of the teacher salaries.

Total state money for the teacher fund last year at Jackson was $3,040,617.

The federal government provided $161,298 to the teacher fund last year that was used to pay a portion of teacher salaries and benefits for specialized educational programs. In addition, another $158,400 came from tuition of students from other school district.

"The general fund, which is now called the incidental fund, pays any expenses in the district that would be approved by the school board," said Alexander. "That includes the salaries and benefits of our non-certified staff, utilities, desks, chairs, books, paper clips, VCRs or repairs to the physical plant. Money in the incidental fund can be used for just about any purpose, with the approval of the school board."

Alexander said that at the first board meeting of each month he submits a detailed list of bills to be paid. Each board member receives a copy in his school board agenda packet. Before the bills are approved, board members review the list and question Alexander on any bills they do not understand.

Superintendent Wayne Maupin said the incidental fund is sometimes referred to half-jokingly as the district's "bread-and-butter" fund because it provides much of the money needed to operate the district.

For example, last year, $4,383,361 of the total $11,773,495 district budget went to the general fund.

The bulk of the funding for the general (now incidental) fund last year was $1,138,176. It came from property owners who paid their school taxes last fall. If you didn't pay on time, another $175,000 came from delinquent taxpayers.

Nearly $860,000 of the incidental fund came from a portion of the sales tax, while student body activities generated another $450,000.

Other local sources of revenue for the incidental fund last year included other taxes, the school district's food services program, athletic program and athletic activities.

The incidental fund received $170,379 from the county's state-assessed railroad and utilities tax.

State money earmarked for the incidental fund last year included $459,902 in minimum guarantee funding (used to pay retirement, Social Security and other benefits for certificated staff), $425,000 for student transportation (school buses), and $260,000 from fees paid by out-of-state insurance companies. This money is used for textbook purchases.

Other state revenue for the incidental fund included money for exceptional-pupil aid, $47,583; early childhood special education, $28,955; and the state gifted students program, $2,000.

Last year the total amount of state money that went into the general fund was $1,254,231.

Federal money earmarked for the general fund last year was $221,737. It included money for special education programs, drug-free schools, food service subsidies, and special milk program.

"Until Senate Bill 380, the school district had a capital projects fund that was used to pay for the construction of new facilities. That fund will be abolished in the 1993-94 budget, and all money in that account will be transferred to the incidental fund," said Alexander.

Funding for last year's capital projects fund, which amounted to $666,275, came mainly from various taxes and earnings on school district financial investments, he said.

This year the district created an incidental building fund, which will be a sub-fund within the incidental fund. Alexander said money in this account will be used to make payments on lease-purchase buildings built by the district such as Orchard Elementary School and the Multi-Purpose Building at the high school.

Alexander said the exact amount of money budgeted in each fund is determined each year by the administration, with the approval of the school board.

"As you can see, each account has its specific purpose, and in the case of the teacher fund and debt service fund we cannot use the money in those funds for any other purpose or transfer them to other accounts," he said.