What’s $30 Million Among Friends?

At last night’s BOCS meeting, Supervisor Pete Candland mentioned some savings PWCS had carried forward.  The savings he noted ranged from $8 million in the 2010 school year to nearly $31 million in the 2014 school year.  Supervisor Candland said he wouldn’t stake his life on the numbers, but that’s what it looked like to him.

He’s right.

In January of 2010 PWCS reported “savings” of $8,249,361 in their 2nd quarter budget update.  $8 million of that was carried forward to the 2011 school year.

This January PWCS reported “savings” of $30,826,526 in their 2nd quarter budget update.  $27.8 million of that was carried forward to the Construction Fund for capital improvements and $1.1 million was carried forward to pay for technology improvements.

These savings aren’t the entirety of what is carried forward by PWCS each year.  These savings are just the school division’s projections in January of what things will look like at the end of the school year in June.  The actual savings that are carried forward at the end of the year are usually greater.

What is carry forward?  By statute, because they’re funded by taxes received from citizens, school divisions are not allowed to have any money left over at the end of the year.  That means that any money that is left over at the end of the year has to be allocated, or carried forward, to the next year or subsequent years. It means that throughout the year the school division assesses spending, calculates what will likely be left over at the end of the year, and carries any excess forward to other funds or the next school year.

Some of the expense categories that resulted in “savings” have been adjusted, so, presumably the savings that are carried forward in the next few years won’t be as much as they were this year.

However, when you have from $8 million to $30 million in savings that you can carry forward to subsequent years, and that money primarily comes from 4 places – under budgeted revenues, over budgeted reserve expenses, over budgeted utilities expenses, and over budgeted compensation expenses – it is difficult to accept that there isn’t enough money to reduce class sizes beyond the 1 student in math in 6th grade that is contained in the FY 2015 budget.

Don’t take my word for it, look and see for yourself.

This file contains the 2nd quarter budget updates from 2010 ===>Q2Updates-2.  These are the actual updates from the PWCS web site.

The chart below is all of those updates conveniently typed into one chart.  The cells highlighted in yellow are the amounts being carried forward.  The columns are in reverse chronological order, so they start with 2014 and go back to 2010.

2nd Qtr Updates

 

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