Superintendent John Allison shared with the Wichita Board of Education that year-end fund balances (unencumbered cash balances) are an essential component of the Wichita Public Schools budget, and that the use of $6.8 million in fund balances in the 2011-12 budget will allow the district’s local property tax rate to remain flat next year. Allison delivered an overview of year-end cash balances during the July 11, 2011, BOE meeting.

“As planned, cash balances are being used in a limited, fiscally responsible way to help fund the district’s 2011-12 budget,” said Allison. “We can’t contemplate a budget that uses all of the cash we have available to spend at this moment in time. We must look at the long-term use of the funds we have available, the long-term financial projections for the state, and most importantly, the expectations we have to educate students as well as pay our employees and vendors on time.”

The balances reported in the district’s 25 funds are a point-in-time measure, which changes dramatically throughout the year. These year-end balances are essential to managing cash flow and supporting budgeted expenditures.

Senate Bill 111, passed at the conclusion of the 2011 Kansas Legislature’s session, provided limited one-year flexibility for the balances of 12 funds in order to make up for the funding cut by the Kansas legislature. Wichita is authorized to use up to $16.4 million in the 2011-12 budget. Superintendent Allison indicated to the board that his budget proposal next week will utilize 41 percent, or $6.8 million, of these funds to balance the budget, avoid further cuts and leave adequate cash flow in order to responsibly support district operations through the year.

“Next Monday (at the July 18 BOE Committee of the Whole), I will bring the Board a budget recommendation that keeps property taxes flat in 2011-12, something you directed me to do very early on in our conversations.”

Access the following resources below:

-          July 11, 2011, BOE presentation and discussion on cash balances

-          The PowerPoint presentation that Superintendent Allison shared with the BOE on July 11

-          The June 30, 2010, BOE meeting agenda with all 2010-11 year-end financial reports

-          The June 30, 2011, BOE meeting agenda with all 2011-12 year-end financial reports

The Board of Education Committee of the Whole during which the BOE will receive the full 2011-12 budget presentation is scheduled for 6 p.m. on Monday, July 18, in the lecture hall at North High, 1437 N. Rochester. The meeting is open to the public