Something to watch – Our view: GSL’s fund balance policy a valuable cushion
Stories on the annual audit for a city, county, school district – heck, any public entity – can be too much about numbers. We noted the Glencoe-Silver Lake School District’s audit for 2020-2021 indicated the district once again spent more than it took in last year.
For those who remember the dark days of statutory operating debt in the mid-2000s, spending more than is taken in evokes memories of seemingly endless budget cutting and reductions in educational services. Anybody who genuinely cares about the quality of education to the community’s children wants to go back there again. This issue should matter to everyone, including the approximately two households of three in the community currently without children in the school district. A strong school district will make the area a more attractive location for people to call home and, eventually, businesses to locate and diversify the tax base.
In explaining the deficit spending, we noted settlements with staff described as larger-than-expected. We hope people noted 70-plus percent of the district’s spending is for staff. Educating children is a people business.
The district’s employees, union and non-union, saw raises and increases in benefits in the neighborhood of 6 percent for teachers and 11 percent for support staff last year. At a time when enrollment is growing and the legislature is continuing to increase per-pupil unit funding, that may be sustainable. The legislature upped the funding last year by about 2 percent, but enrollment is not increasing. GSL is expecting 25 fewer students in its hallways next year.
In the summer of 2023, negotiators for employee groups must know and respect the district’s financial position and not simply push for larger settlements expecting they will be covered via layoffs of promising young teachers.
The district will also be challenged by rising prices for everything from paper, fuel, cleaning supplies and food.
Good, smart people lead GSL. We are confident the district’s leaders will continue to take care of the facilities and programming, but it is concerning to see them surprised by larger-than-expected settlements with staff, especially at a time when enrollment isn’t increasing.
The district has the benefit of wise planners who established a 20 percent fund balance policy coming out of the SOD. The policy operates like a cushion. It allows the district to spend more than it takes in. At times, the size of that fund balance seems excessive. But it provides a necessary cushion, but not an excuse, for spending to unexpectedly exceed revenue.
The school district budget planners are not worried about the spending, thanks in part to GSL’s fund balance.
- jm