At a recent meeting with some public-school administrators, we were discussing school finance. Several superintendents told me they struggled to keep the recommended reserve amount in the bank. Mainly because they were committed to quality education. They wanted teachers to have all the necessities.
These superintendents had districts with low student-teacher ratios and excellent school facilities. I was so impressed with a 2A district in particular. Every building and outside facility appeared to be recently renovated or new. The unique thing about these districts is they were all in property poor school districts. How about districts having millions in reserve and do not provide the finest of facilities?
One can argue keeping a large fund balance is not a responsible use of taxpayer money. Interest rates do not keep up with the rate of inflation. Thus, large amounts of funds held in savings accounts lose value over time.
In times of economic hardship, the state government routinely evaluates recapturing excess local school district fund balances. Having excess is not always a good thing for school districts. Wealthy Texas school districts have struggled with this recurring challenge for decades.
As a taxpayer, I would ask whether school leaders, who accumulate tens of millions of dollars in excess fund balance, really need the Maintenance and Operations (M&O) tax rate they charge me each month. It hurts the credibility of trustees and administrators who ask voters to approve TRE and bond elections under the pretext of educating students only to see those precious local dollars ratholed, depreciated in value due to low interest rates and potentially subjected to recapture.
Tax dollars belong in the pockets of taxpayers until truly needed especially in school districts with low property tax values. Rat holing money beyond what is recommended might make the administration appear to be greedy. Could this be an indication they are more interested in appeasing board members than educating students?
Look at your local school districts’ fund balance account and review the district amenities available for educating students. How are the computer and technology resources? What kind of excellence is provided in education assistance for teachers? What is the student-teacher ratio at all levels? Ask the elementary teachers, science teachers, agricultural teachers, coaches, fine arts instructors and other sponsors if their teaching supplies, facilities and budgets are up to snuff. Ask and research if the school amenities, across the board, are in line with other school districts their size and financial status.
Districts accumulate fund balances for three reasons: covering cash flow deficits in the fall until property taxes are collected in January; providing financial stability to enhance district bond ratings for lower interest rates and creating a financial reserve to meet unexpected expenses and emergencies.
I know there will be many different opinions on how to save and how to spend, but one thing I believe most of us will agree, the available money within a district is for the education of our youth.
Thought for the week:
“It is difficult to create a budget for life when we all cash out the same. Corpses have no currency.”
— Amber Garibay
Dr. Jack Welch is a college football coach. He holds a Doctor of Education degree and has been a college and high school football coach for 39 years. He can be reached at jackwelch1975@gmail.com.
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