School district finds a very small 'cushion'

The Sisters School District has allayed some concerns that there isn't enough money set aside if enrollment drops more than expected.

Last June during budget discussions, board member Chris Jones (now chair of the board) asked if there was "sufficient cushion" with $0 set as the ending fund balance and $112,000 in contingency. Jones suggested that five percent or more than $600,000 is considered prudent in some quarters.

Since then, additional information and some savings have resulted in a swing of about $113,547 to the good. This is expected to become part of the schools' cash carry forward at the end of the 2008-09 school year.

It is not set up in the contingency fund, which would require the district adopt a supplemental budget.

The additional funds came from a variety of sources. About $12,308 was from savings in insurance, the cost of which increased less than the 10% budgeted by the district.

There were also additional revenues not budgeted, including $40,000 in payments for students attending Sisters from other districts; about $61,000 from the state for various administration fees for charter schools; and $10,000 from the "chalkboard grant" secured by Superintendent Elaine Drakulich.

The total funds from additional revenues and reduced expenses is $133,547, according to a worksheet given to the school board.

The additional money was listed on the worksheet as a "Total Net Contingency Increase," but the money is not actually in the contingency budget. The plan is for the money to become part of the ending fund balance for this year and listed as a revenue source for the 2010-11 school year, according to Drakulich.

Part of the board's concern is that an inadequate "cushion" could put school finances in a vise, with costs continuing to climb (up this year by six percent) because of fuel, wages, salaries and insurance, while revenues from the state level off or decline because of falling enrollment.