February 2023
District Financial Health
February is a good time to offer an update on the financial health of the school district. We will be preparing a budget for the 2023-2024 school year in just a few weeks, which leads eventually to the certification of a property tax by the school board. Pausing right now to report on the financial stability of the district should offer context for this upcoming process.
Key financial considerations:
The General Fund cash balance continues to be healthy and slightly above the target of $2M, or the equivalent of three months of operating expenses.
The solvency ratio, a calculation used to assess financial health, at the end of last year was 24%, which is also above the target range.
Annual expenditures continue to rise and are approximately $8.5M, with about 80% dedicated to wages and benefits for employment of the various departments within the district.
Valuation continues to grow at an average rate above 3.5%.
The district tax rate stayed steady this year at $15.14.
What does this all mean? The district has a strong financial position despite the increasing cost of doing business. Enrollment growth, especially including increasing open enrollment, play a significant role in this financial position. We can expect the next 3-5 years to be challenging as changes to the state tax structure come into effect and state revenue decreases. This along with a potential increase in state expenditures toward non-public education, create uncertainty about the ability to fund public education. What I can tell you for sure is that Alburnett, with continued careful planning, is currently well positioned to withstand the shifts that lie ahead.
I once again want to express my respect for the work of our school board and staff, as well as support from our community that has helped us reach and maintain this position. Our goal is to be financially sound while providing a quality educational experience for our children.