2004 fund balance better than expected

Brandon Twp-After a host of cuts in state aid and facing nearly a $1.5 million budget shortfall, the Brandon School Board approved $894,555 in reductions for the 2004-05 school year at a special meeting on May 24.
Now, school officials say the reductions have exceeded the immediate needs and a surplus in the fund balance of $223,291 was reported in the June 30, 2004 audit presented to the school board. A fund balance is the savings or rainy day fund left after expenses.
Incorporated in the cuts last spring was the reduction of nine teaching positions, 12 part-time support staff, five full time support staff and numerous reductions in building budgets. The cuts along with using $655,492 in reserve funds were needed, say school officials to balance the budget. Following several staff retirements the school district has since called back to work many of those laid off last spring.
‘The biggest key is that every employee did what they could to help save money,? said Gary Kelly, Brandon Schools finance director.
‘But, you can’t do that kind of cut very many times. Given the number of budget cuts you may be facing down the road, you don’t keep the buildings maintained and the buses on the road without money.?
For example, Kelly said that school buses will be a major factor in the next school year where several new buses must be purchased to keep the fleet up to date.
On June 30, 2003, the schools? fund balance ended at $3,534,727 (13 percent of the school budget). Following the June 30, 2004 audit a fund balance of $3,758,018 (14 percent )was reported.
The school board also Ok’d spending additional funds on the superintendent search firm, a 7 percent increase in natural gas and electric, 5 percent increase in diesel fuel for transportation, added underground storage tank insurance. In addition the school board approved the purchase of band uniforms and funding of substitute accounts to reflect anticipated usage.
While the funding issue has improved for the 2004-2005 school year, school officials are still cautious about what may be ahead for the next school year.