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As another school budget season is upon us, we decided to dig in a bit. Have you ever wondered where all the money in your school district goes? While it might seem like a straightforward question, the reality is often shrouded in mystery, with a significant portion of funds designated as "unassigned." These elusive resources, akin to hidden treasures, can hold substantial value, yet their allocation remains largely unexamined. Today, we're delving into the depths of school finance to uncover the sums behind unassigned funds and their impact on educational budgets.
Unassigned funds, often overlooked amidst the jumble of line items in school budgets, represent a considerable portion of financial resources. On average, these funds can account for as much as 5% to 10% of a school district's total budget.
That's no small change; it's akin to finding a pot of gold at the end of the budget rainbow.
But what exactly are unassigned funds, and why are they significant? Unassigned funds refer to money within a school district's budget that hasn't been earmarked for any specific purpose. In essence, they're like the spare change rattling around in the bottom of a piggy bank, there for future use but not yet designated for any particular expenditure. Despite their nebulous nature, these funds wield considerable power in shaping the financial landscape of schools, providing flexibility for unforeseen expenses or strategic investments in education.
However, the opacity surrounding the management of unassigned funds has raised eyebrows among education advocates and policymakers alike. Questions abound regarding the accountability and transparency of these financial resources. With such a substantial sum at stake, there's a growing call for greater scrutiny and oversight to ensure that unassigned funds are utilized effectively and in the best interest of students and their communities.
So grab your magnifying glass and join us on this investigative journey as we uncover the mysteries behind the hidden fortune of unassigned funds in school districts. We'll look at our local schools to see just how much of your taxpayer money is floating around unassigned, unrestricted, and seemingly undisclosed. Please keep in mind that the 2024-2025 budgets that will be presented later are preliminary budgets that are subject to change.
Penncrest for 2023-2024:
Pay attention to the checkbox regarding the unassigned fund balance being within allowable limits, we'll discuss why that's relevant later.
Conneaut School District 2023-2024:
Commodore Perry School District 2023-2024:
Crawford Central School District 2023-2024:
Now, you might be wondering what is allowable for an unassigned balance. If you ask the state, this is what they say:
You'll notice that so long as the district remains within the designated percentages, it is perfectly legal and acceptable to carry a substantial sum of money that is unassigned. There is a stipulation that if a balance is carried, a justification must be provided. What exactly do each of these school districts provide for a justification? Read for yourself (Val Number 8080):
Penncrest:
Conneaut:
Commodore Perry:
Crawford Central:
You might be wondering what the specific provision regarding justification is, or maybe not. Either way, it states the following:
Now, what do the proposed budgets look like as far as unassigned funds?
Penncrest proposed unassigned fund balance compared to expenditures:
Conneaut projected expenditures:
Conneaut projected fund balances:
Video found here, until it is removed, which may be 90 days from May 1, 2024 (according to minutes regarding how long live streams will be available):
Commodore Perry does not have any preliminary budget information available through searches online and on the district website.
Crawford Central projected expenses:
Crawford Central's projected unassigned fund balance is somewhat intriguing because you can see a higher unassigned fund balance at the start of the document.
But, by the end of the preliminary budget document, this balance is lowered.
Had it remained at the $7,382,837 the unassigned balance would be 10.39%, which would be above the allowable limit, and thus would mean the district could not raise taxes, per the PA statute mentioned earlier. To prevent you from needing to scroll up, here's the statute again:
While it's essential to recognize that these instances of unassigned funds are not indicative of malfeasance, the lack of transparency surrounding their allocation raises valid concerns. As stewards of public resources, school districts have a responsibility to ensure that funds are utilized effectively and in the best interest of students and their communities. At what point is there enough taxpayer money floating in the fund balances? Assigned fund balances are held for a specific purpose and can't be used for anything else, and unassigned can be moved around in various manners depending on need. When you start talking about budget shortfalls and tax increases, some may begin to analyze and scrutinize the pennies in the pocket of these school districts and wonder, do they have enough already? Is there a piece of the puzzle missing? Do those budget transfers go to places you recognize or can readily find information on?
While we don't want to overwhelm our readers with too much information and get too far in the weeds, maybe it's time to shine a spotlight on the shadowy corners of educational finance and demand greater transparency in how unassigned funds are generated, managed, and disbursed. By fostering open dialogue and promoting robust oversight mechanisms, we can ensure that every dollar earmarked for education serves its intended purpose. Let's embark on a journey toward greater accountability and transparency, where the hidden fortune of unassigned funds is no longer a mystery but a beacon of fiscal responsibility in our schools. Let's ensure that every penny is accounted for and every decision is made with the utmost integrity. After all, they are our tax dollars and we deserve to know and understand the intent and purpose they serve to our districts.
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