At a time when South Carolina educrats are whining about budget cuts and threatening to lay off teachers, Palmetto public school districts are continuing to carry hundreds of millions of dollars in reserve accounts.
In fact, South Carolina’s public schools currently have $763.7 million sitting in “undesignated” reserve accounts, according to data obtained by FITS. That amount is down from 2008′s peak level of nearly $803 million in reserve money – but represents a $35.2 million increase from 2009′s reserve total.
Also, let’s not forget that South Carolina public schools received nearly a billion dollars in new money during the first two years of the recession (see here and here).
For reasons surpassing understanding, these public school reserve accounts are rarely (if ever) covered by the state’s mainstream media – unlike the bureaucratic hand-wringing and irrational hyperventilating that invariably accompanies the threat of teacher layoffs. Also, neither S.C. Gov. Nikki Haley nor State Superintendent of Education Mick Zais seems to be interested in addressing these funds as they propose reforms to the state’s dysfunctional education funding system.
Some have argued that maintaining healthy reserve balances is the “fiscally conservative” thing to do.
We agree – assuming you’re talking about a small business or household budget.
For public schools, which receive hundreds of millions of dollars in new money each year, we think that argument is ludicrous … particularly considering the awful results our public school system is producing.
To view the fund balances for each individual district, click on the spreadsheet below …
2010 S.C. PUBLIC SCHOOL FUND BALANCES (.xls)
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By FunkyChicken February 22, 2011 at 11:52 am
You are wrong on this one Willie. For many financial reasons, it is imperative that school districts maintain a fund balance of 8-18% of their total budget for emergency spending and keeping bond ratings high for lower interest rates on debt service. Your spreadsheet would be easier to interpret if you also included the percentage of the total budget represented by the fund balance. There are a few districts in your spreadsheet that would appear to exceed the recommended 8-18% range. It appears you will probably get your wish, however, as school districts are now in the position where they must drain their fund balances due to the lack of operating revenue under Act 388. Beware of your property taxes (debt service) increasing if bond ratings tumble. Maintaining an appropriate fund balance, however, is a fiscally conservative ideal.
The real problem in SC is not the issue of fund balances, but disgusting individuals like you who accept money from Howie Rich to spread lies about public education.
By vicupstate February 22, 2011 at 12:06 pm
The reasonn Zais, Haley, et al don’t make a fuss about it is precisely because not maintaining a sufficient balance is very risky and also required to keep bond ratings high and interest rates low.
Living ‘paycheck to paycheck’ is a bad idea for individuals, and even more so for governments.
By Stupid is stupid does February 22, 2011 at 1:42 pm
As you say Haley and Zais, two peas in a bucket, mother-fuck-it.
By EasleyJack February 22, 2011 at 2:04 pm
The money is used frequently by the districts to cover a number of expenses including payroll when the money transfer from Columbia, and strangle hold, does not take place on time. Is I have stated here before, as long as the folks in Columbia insist on having the control they have the reserves are absolutly necessary. Now, should the amount resereved be as much as it is is a great question. That is worth pursuing.
By Lewis February 22, 2011 at 5:06 pm
Please note the education department and the districts always talk about firing teachers – never the consultants and superfluous administrators.
By baker February 22, 2011 at 5:29 pm
Aside from the question of sound and standard accounting and finance practices, the fact that districts are so-called “hoarding” the money actually seems to speak to the honesty of their strategy.
I mean, if they were using these savings to give superintendents or board members end-of-the-year hefty bonuses, that would certainly suggest wrongdoing. But if the money mostly sits there, then it’s pretty clear it’s in place for reasons of financial security.
And, yeah, my guess is that non-budgeted needs come up all the time that district spend part of their savings on — if a storm comes along and a tree falls through the roof of a middle school, there’s money on hand to fix it….if the state imposes major budget cuts, there’s some buffer….if the price of gas unexpectedly goes up by .75 a gallon, there’s some money to deal with transportation costs…..if a teacher is fired and sues the district, there’s money to deal with the legal system. It’s pretty basic, really.
By Shanks Evans February 23, 2011 at 8:50 am
If the Legislature had conducted its financial affairs as well as local school districts, then it too would have fund balance to use. But, since it has irresponsibly squandered a billion dollar surplus from 2006 and another billion dollars in stimulus money and all of the reserves it once had, it now finds itself in the hole to the tune of a billion. Now it wants to squander the schools districts’ nearly one billion. How many more billions should the General Assembly get?
By BIN News Eidtorial Staff February 25, 2011 at 8:03 pm
FunkyC, don’t waste time making intelligent posts on this porn site.
sic(k) willie has no interest in posting truth about public education.
He knows that his rhetoric about fund balances is nothing but cr@p.
He is just puking cr@p from Howie the Voucher Clown’s play book.
What a voucer wh@re.
Darn. The “h” key is sticking again.
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