I thought this was a very interesting proposal to help a very few number of students. Nonetheless, it could help a handful of young people take the right turn at a time when they need it.
Maria
Updated: 6/16/2008 11:32:01 PM
Graduation requirements could drop
By Christena T. O'Brien
Leader-Telegram staff
The minimum number of credits required for qualified Eau Claire high school students to graduate could drop from 22 to 16 if the school board adopts an administrative proposal.
"Ideally, we'd like every single one of our students to graduate with a 22-credit diploma and go onto whatever sort of post-secondary option they're looking at, but realistically, we know that's not (always possible)," Fred Weissenburger, the district's executive director of student services, told the Eau Claire school board Monday, noting the reduced-credit graduation requirements would help keep students in school.
On rare occasions, students experience academic difficulty during their freshman or sophomore year, which results in credit deficiency, Memorial High School Principal Tim Leibham said. Under the current system, these students are required to take seven classes during the regular school day and then spend additional time in off-campus programs to meet the 22-credit graduation requirement.
"This expectation is overwhelming to most students, and therefore, they typically do not remain engaged in a high school program," he said.
Because of that, he and others are proposing the reduced credit graduation option.
"Instead of requiring these students to spend more time outside of the school day earning credits, we reduce the number of credits needed to graduate, but require more rigorous courses," according to the proposal.
To be eligible for the reduced-credit graduation requirement option, a student would be credit deficient by one year or more, approximately five credits, and must have passed all courses the semester prior to admittance to the program, continue to pass all courses once enrolled, take all required courses at the local high school or an administratively approved program and earn a minimum of 16 credits.
"This is something that is catching on," Leibham said of the reduced-credit proposal, noting it meets state Department of Public Instruction requirements.
Those 16 credits must include the 13 1/2 credits of state-required courses - four credits of English, three credits of social studies, 2 1/2 credits of science, two credits of math, 1 1/2 credits of science and one-half credit of health - and 2 1/2 credits of electives.
Students earning a 22-credit diploma also must earn the 13 1/2 state-required course credits and 8 1/2 credits of electives.
On the downside, an official high school transcript with fewer than 22 credits might prevent direct admission into some post-secondary institutions, Leibham said.
If the board adopts the proposal at a future meeting, "We want to be careful that this doesn't become something that's aspirational, something that (students) are striving for because that would be really lowering the bar, and we're not proposing to do that," Weissenburger said.
In addition, students wouldn't be able to use this option to graduate early, Leibham said.
This proposal "certainly allows (specific students) to get back into the ball game," board member Brent Wogahn said. "I think it's an excellent idea."
O'Brien can be reached at 800-236-7077 or christena.obrien@ecpc.com.
Wednesday, June 18, 2008
DPI: Longfellow School MUST Comply With SAGE
FINALLY, the DPI is attempting to hold the ECASD accountable for creating a school with close to 75% "at risk" children and not providing the staff and teachers with the resources to help students succeed. I have heard for YEARS that the situation at Longfellow was unfair and not in compliance with SAGE rules since it was merged with students from Lincoln to accommodate the Montessori program.
Justice delayed is justice denied for those students and staff who had too few resources for so many years.
Maria
Updated: 6/17/2008 11:27:01 PM
Longfellow may have to add teachers
By Christena T. O'Brien
Leader-Telegram staff
The Eau Claire school district might have to add up to two teachers at Longfellow School to comply with requirements for a state program aimed at reducing class sizes at the elementary level.
Earlier this year, school officials - at the direction of the school board - applied for waivers from the state Department of Public Instruction for eight schools offering the Student Achievement Guarantee in Education, or SAGE, program to give the district time to comply with the class size requirement of one teacher to 15 students in kindergarten through third grade.
The DPI denied the waiver request for Longfellow School, meaning the elementary must be in full compliance with the 15-to-1 class size requirement beginning in the 2008-09 school year.
The DPI reviews SAGE waivers on a case-by-case basis considering a variety of factors, including classroom configuration, overall class sizes, poverty rates and student achievement data, said Shelly Greller, a DPI SAGE program consultant.
In looking at all of those factors, "We thought Longfellow was one (school) we really wanted to make the district take a look at," she said. In denying the waiver for the north side school, "We're kind of helping the district prioritize."
In March, the board unanimously approved a motion to apply for the waivers for Flynn, Lakeshore, Locust Lane, Longfellow, Northwoods, Roosevelt, Sam Davey and Sherman. That motion included using up to $400,000 as a one-time payment from the district budget's general fund to work toward compliance with the SAGE law.
Throughout the summer, district officials will continue to monitor enrollment projections for Longfellow for the 2008-09 academic year, said Gregg Butler, interim deputy superintendent.
If projected class sizes materialize or increase, the school board then will have to consider adding either a first- or second-grade teacher or both, he said.
District officials estimated the cost of two teachers at $120,000 to $130,000.
While denying the waiver request for Longfellow, the DPI approved waivers for the other schools for the 2008-09 school year, with conditions.
In the fall, a committee will be formulated to examine the SAGE program and make recommendations to the school board regarding compliance with the law, Butler said.
O'Brien can be reached at 830-5838, 800-236-7077 or christena.obrien@ecpc.com.
Justice delayed is justice denied for those students and staff who had too few resources for so many years.
Maria
Updated: 6/17/2008 11:27:01 PM
Longfellow may have to add teachers
By Christena T. O'Brien
Leader-Telegram staff
The Eau Claire school district might have to add up to two teachers at Longfellow School to comply with requirements for a state program aimed at reducing class sizes at the elementary level.
Earlier this year, school officials - at the direction of the school board - applied for waivers from the state Department of Public Instruction for eight schools offering the Student Achievement Guarantee in Education, or SAGE, program to give the district time to comply with the class size requirement of one teacher to 15 students in kindergarten through third grade.
The DPI denied the waiver request for Longfellow School, meaning the elementary must be in full compliance with the 15-to-1 class size requirement beginning in the 2008-09 school year.
The DPI reviews SAGE waivers on a case-by-case basis considering a variety of factors, including classroom configuration, overall class sizes, poverty rates and student achievement data, said Shelly Greller, a DPI SAGE program consultant.
In looking at all of those factors, "We thought Longfellow was one (school) we really wanted to make the district take a look at," she said. In denying the waiver for the north side school, "We're kind of helping the district prioritize."
In March, the board unanimously approved a motion to apply for the waivers for Flynn, Lakeshore, Locust Lane, Longfellow, Northwoods, Roosevelt, Sam Davey and Sherman. That motion included using up to $400,000 as a one-time payment from the district budget's general fund to work toward compliance with the SAGE law.
Throughout the summer, district officials will continue to monitor enrollment projections for Longfellow for the 2008-09 academic year, said Gregg Butler, interim deputy superintendent.
If projected class sizes materialize or increase, the school board then will have to consider adding either a first- or second-grade teacher or both, he said.
District officials estimated the cost of two teachers at $120,000 to $130,000.
While denying the waiver request for Longfellow, the DPI approved waivers for the other schools for the 2008-09 school year, with conditions.
In the fall, a committee will be formulated to examine the SAGE program and make recommendations to the school board regarding compliance with the law, Butler said.
O'Brien can be reached at 830-5838, 800-236-7077 or christena.obrien@ecpc.com.
Change in Retiree Health Plan Proposed
I do not have enough information about the process and costs and consequences of this change to make any comment at this time. Anybody else?
Maria
Updated: 6/17/2008 11:47:01 PM
Retires riled over Eau Claire school district's health plan offer
By Christena T. O'Brien
Leader-Telegram staff
Some retired Eau Claire school district teachers are upset they may have to pay more for health insurance than their counterparts who are still working.
Dozens of retirees attended Monday's school board meeting to express their concerns over changes to their insurance coverage that mean they no longer would have identical plans as current teachers.
Retired Memorial High School English teacher Fred Poss is hopeful retirees and district officials can work through the issue.
Retirees aren't asking for anything extra, just what they're entitled to get from past deals, he said.
"A deal is a deal, and when it's not, look out," said Poss, one of six people to address the board Monday.
School officials will meet with retirees Monday in an effort to work through the disagreement over health insurance.
"Whenever we make a big change, there are challenges to that," board President Carol Craig said Tuesday, "so we want an open session, so every retiree understands what's being offered."
In past years, retirees have been offered the same health insurance plan as active employees, said Jim Kling, district executive director of personnel.
In the Eau Claire school district, 274 retirees have the district's health insurance plan, Kling said.
District officials proposed moving all employees, including retirees, to high-deductible health reimbursement accounts but later were directed by their lawyer not to offer the HRA plan because of the possibility of a legal challenge, he said. Because of that, retirees were offered the traditional health insurance plan in effect under the last contract, which comes with a 17 percent increase in the premium.
The out-of-pocket costs for employees vary, but Kling said such costs range from zero to $2,200 for a single plan under the traditional health insurance plan and zero to $1,500 for a single plan under the HRA plan.
"The issue is really one that we don't necessarily have to take on, but it's essential that we do at the same time, and that is because we bargained in good faith, and this is a very concerning factor that came in after the bargaining," said Jo Burke, president of the Eau Claire Association of Educators, the teachers union.
"We've always had an agreement that any insurance plan covers all employees - active and retired," she said, "(so), the issue is whether existing retirees should be provided a different health plan than current employees."
O'Brien can be reached at 830-5838, 800-236-7077 or christena.obrien@ecpc.com.
Maria
Updated: 6/17/2008 11:47:01 PM
Retires riled over Eau Claire school district's health plan offer
By Christena T. O'Brien
Leader-Telegram staff
Some retired Eau Claire school district teachers are upset they may have to pay more for health insurance than their counterparts who are still working.
Dozens of retirees attended Monday's school board meeting to express their concerns over changes to their insurance coverage that mean they no longer would have identical plans as current teachers.
Retired Memorial High School English teacher Fred Poss is hopeful retirees and district officials can work through the issue.
Retirees aren't asking for anything extra, just what they're entitled to get from past deals, he said.
"A deal is a deal, and when it's not, look out," said Poss, one of six people to address the board Monday.
School officials will meet with retirees Monday in an effort to work through the disagreement over health insurance.
"Whenever we make a big change, there are challenges to that," board President Carol Craig said Tuesday, "so we want an open session, so every retiree understands what's being offered."
In past years, retirees have been offered the same health insurance plan as active employees, said Jim Kling, district executive director of personnel.
In the Eau Claire school district, 274 retirees have the district's health insurance plan, Kling said.
District officials proposed moving all employees, including retirees, to high-deductible health reimbursement accounts but later were directed by their lawyer not to offer the HRA plan because of the possibility of a legal challenge, he said. Because of that, retirees were offered the traditional health insurance plan in effect under the last contract, which comes with a 17 percent increase in the premium.
The out-of-pocket costs for employees vary, but Kling said such costs range from zero to $2,200 for a single plan under the traditional health insurance plan and zero to $1,500 for a single plan under the HRA plan.
"The issue is really one that we don't necessarily have to take on, but it's essential that we do at the same time, and that is because we bargained in good faith, and this is a very concerning factor that came in after the bargaining," said Jo Burke, president of the Eau Claire Association of Educators, the teachers union.
"We've always had an agreement that any insurance plan covers all employees - active and retired," she said, "(so), the issue is whether existing retirees should be provided a different health plan than current employees."
O'Brien can be reached at 830-5838, 800-236-7077 or christena.obrien@ecpc.com.
Friday, June 13, 2008
Letter to the Editor 6-13=08
Give Klaus walking papers
Some of us remember April in Eau Claire - not Paris. We remember how April took her boots not made for walking (unlike Nancy Sinatra) on a plane to New York where she dazzled folks with her story about not being homecoming queen in spite of getting the most popular votes.
If anyone understands, surely Hillary Rodham Clinton does. So does a former Memorial High School principal who got his walking papers and took them "up nort'," where I now happily reside.
In spite of not getting national fame/attention, former Eau Claire school district Superintendent Bill Klaus should move out (and be pushed, if necessary), preferably somewhere far away to the south. Let's try to get rid of this Old Maid card, like the folks who sent Eau Claire its new school superintendant.
Does the school board need national attention before doing what is right? Paid leave? C'mon! Fire the dude. Kudos to Leader-Telegram reporter Julian Emerson for exposing the ruse.
Voters won't forget, so please, elected folks, do what is right before our children pay the price for your ignorance. Your silence is deafening. Tell us what you know, if you know more than we Leader-Telegram readers do.
MARILYN BUSHENDORF
New Auburn
Keep eye on school district
The recent issues surrounding the Eau Claire school board will hopefully persuade all Eau Claire residents to adjust their votes accordingly in the next election.
Let us also not allow this mishandling of responsibility to be pushed under the carpet. We must demand accountability for those we've elected to public office, and also see to it that punishment for violations is severely and publicly applied.
The closed-door meetings that the school board has held and the withholding of public records are more of the same sort of behavior that got us to where we are now. Closed-door meetings should be for very personal and private matters regarding students only. Public officials' behavior, pay and benefits do not qualify.
Kudos to the Leader-Telegram for not letting this violation of public trust be ignored. Please continue the attention and keep the public informed until the right thing is done.
BARRY LANCETTE
Eau Claire
Some of us remember April in Eau Claire - not Paris. We remember how April took her boots not made for walking (unlike Nancy Sinatra) on a plane to New York where she dazzled folks with her story about not being homecoming queen in spite of getting the most popular votes.
If anyone understands, surely Hillary Rodham Clinton does. So does a former Memorial High School principal who got his walking papers and took them "up nort'," where I now happily reside.
In spite of not getting national fame/attention, former Eau Claire school district Superintendent Bill Klaus should move out (and be pushed, if necessary), preferably somewhere far away to the south. Let's try to get rid of this Old Maid card, like the folks who sent Eau Claire its new school superintendant.
Does the school board need national attention before doing what is right? Paid leave? C'mon! Fire the dude. Kudos to Leader-Telegram reporter Julian Emerson for exposing the ruse.
Voters won't forget, so please, elected folks, do what is right before our children pay the price for your ignorance. Your silence is deafening. Tell us what you know, if you know more than we Leader-Telegram readers do.
MARILYN BUSHENDORF
New Auburn
Keep eye on school district
The recent issues surrounding the Eau Claire school board will hopefully persuade all Eau Claire residents to adjust their votes accordingly in the next election.
Let us also not allow this mishandling of responsibility to be pushed under the carpet. We must demand accountability for those we've elected to public office, and also see to it that punishment for violations is severely and publicly applied.
The closed-door meetings that the school board has held and the withholding of public records are more of the same sort of behavior that got us to where we are now. Closed-door meetings should be for very personal and private matters regarding students only. Public officials' behavior, pay and benefits do not qualify.
Kudos to the Leader-Telegram for not letting this violation of public trust be ignored. Please continue the attention and keep the public informed until the right thing is done.
BARRY LANCETTE
Eau Claire
Tuesday, June 10, 2008
Letter to the Editor 6-10-08
Integrity can't be selective
The Leader-Telegram demonstrates truth and fortitude when it continues to report on questionable actions by some in current or former leadership positions in the Eau Claire school district. After the Sunday, May 4, "Letter from the Editor" was printed, there is an important need to clarify key points in life activities and educational accountability.
Today there is a common fallacy in religious and business organizations. Arrogance and deception are continually observed in "lumping" financial activity all together. It becomes impossible to distinguish where the ultimate dollar is spent and who receives the greatest compensation.
This generation needs to understand, and model action speaks louder than words. Ridiculous, fabricated excuses do not excuse the "intelligently educated." We must clarify such talk as rubbish. Such actions can and will remove any praise from previous years of service.
Enough is enough! True integrity is demonstrated when no one is looking! Bill Klaus, Carol Olson and Mike O'Brien - we now know what you think and do when you believe no one is looking! Intelligent, educated citizens are refusing to accept your actions, fabrications and excuses. This school district desires open leadership with integrity. It sends the wrong message to our young people to announce a person is on paid leave, but does not reflect on the shameful activity of the likes of such "leadership." Our community respectfully requests the correct message to students that actions do affect your lasting legacy! Oust Klaus!
ORVIN L. BYSTOL
Eau Claire
The Leader-Telegram demonstrates truth and fortitude when it continues to report on questionable actions by some in current or former leadership positions in the Eau Claire school district. After the Sunday, May 4, "Letter from the Editor" was printed, there is an important need to clarify key points in life activities and educational accountability.
Today there is a common fallacy in religious and business organizations. Arrogance and deception are continually observed in "lumping" financial activity all together. It becomes impossible to distinguish where the ultimate dollar is spent and who receives the greatest compensation.
This generation needs to understand, and model action speaks louder than words. Ridiculous, fabricated excuses do not excuse the "intelligently educated." We must clarify such talk as rubbish. Such actions can and will remove any praise from previous years of service.
Enough is enough! True integrity is demonstrated when no one is looking! Bill Klaus, Carol Olson and Mike O'Brien - we now know what you think and do when you believe no one is looking! Intelligent, educated citizens are refusing to accept your actions, fabrications and excuses. This school district desires open leadership with integrity. It sends the wrong message to our young people to announce a person is on paid leave, but does not reflect on the shameful activity of the likes of such "leadership." Our community respectfully requests the correct message to students that actions do affect your lasting legacy! Oust Klaus!
ORVIN L. BYSTOL
Eau Claire
Friday, June 6, 2008
ECASD Administrators Knew More Than They Told the BOE??
Comm. Cummins has been unfairly criticized in the LT Comments that she should have resigned if she objected. I hope that EACH AND EVERY BOE member who was on the Board in October 2007 when this hit the fan will explain to the public WHAT THE H#*L THEY WERE THINKING was the meaning of this if not that a totally fake document had been created to increase Klaus' current compensation and that it had been backdated by Olson when she had no authority to do so. The fact that Cummins was concerned and, apparently, unable to sway other BOE members to share her concern deserves kudos not derision.
Maria
Updated: 6/5/2008
Cummins: Officials stonewalled school board on stipend
By Julian Emerson
Leader-Telegram staff
Two days after learning about an alteration to former Superintendent Bill Klaus' contract without the knowledge of the Eau Claire school board, member Trish Cummins requested a meeting with legal counsel outlining the district's responsibility in the matter.
An Oct. 24 e-mail message from Cummins to her fellow board members and district administrators reveals Cummins' concern about the issue.
But instead of addressing the issue, administrators to whom the message was sent - interim Superintendent James Leary, Deputy Superintendent Gregg Butler and Personnel Director Jim Kling - failed to respond to the request, prompting questions about their apparent attempt to keep the contract change under wraps, Cummins and other sources said.
The message notes Cummins' coming to terms with "the gravity of the situation" and questions the legal and ethical responsibility of board members related to the contract change that allowed Klaus to begin receiving his $225,000 retirement stipend payments earlier than allowed.
"I didn't know if this was criminal or a personnel issue," Cummins said Wednesday. "But I didn't think we could say, 'Oh well, I guess this happened and we're not going to do anything about it.' I didn't want to be the elected official who turned away from this."
Despite repeated questions about the status of seeking legal counsel, Cummins said she received little response from administrators, even as Klaus' contract alteration received continued discussion during subsequent closed-session school board meetings in November and December.
Other sources familiar with the situation confirmed that administrators with knowledge of the contract change were reluctant to reveal information about it, even to board members. Several board members said they didn't realize the full scope of the contract change until an April 19 Leader-Telegram story detailing how former board PresidentCarol Olson, at Klaus' request, signed and backdated a document stipulating that Klaus' stipend payments begin on Aug. 1, 2007.
"After going through the (school board investigation), there was a lot more information available (on Oct. 22) than was given to us that night," board member Ken Faanes said.
District officials say Klaus did not receive any of that money - to be paid over five years - after the document signed by Olson was questioned. The matter has resulted in ongoing police and school board investigations, and Klaus was placed on administrative leave from his job as Northstar Middle School principal.
Klaus has said he believed the board had approved his receiving that money as part of contract changes it approved on Feb. 5, 2007. He said he met with Leary, Kling and former school board President Michael O'Brien during late summer or early fall in an attempt to resolve stipend payment questions.
Board members said they never discussed granting Klaus early retirement payments and noted that administrators kept them in the dark about the issue even after the Oct. 22 meeting.
"I am uncertain as to why my request was not met," Cummins said, "and to not even have it addressed was very frustrating. As a board member I represent the community, and I believe most members of this community would have looked at this and said, 'What the heck is going on?' "
Leary, Butler and Kling did not return messages Wednesday seeking comment.
Administrators weren't the only people who apparently withheld information about the topic. District officials familiar with the situation say O'Brien knew about the contract change before the Oct. 22 meeting but didn't inform fellow board members.
O'Brien has said documents related to Klaus' contract sought by the Leader-Telegram should not be made available to the newspaper because that issue had been discussed in closed session. He has refused further comment on Klaus' contract.
In April, district officials granted the Leader-Telegram access to Klaus' personnel file, and the school board subsequently ordered other documents turned over to the newspaper. Some of those records still have not been released.
In the meantime, the school board and police investigations continue. The school board has interviewed six district employees, including Klaus, but hasn't announced any possible disciplinary action. Reports from the police investigation will be forwarded to Eau Claire County District Attorney Rich White, who will decide whether to file charges.
Emerson can be reached at 830-5911, 800-236-7077 or julian.emerson@ecpc.com.
Maria
Updated: 6/5/2008
Cummins: Officials stonewalled school board on stipend
By Julian Emerson
Leader-Telegram staff
Two days after learning about an alteration to former Superintendent Bill Klaus' contract without the knowledge of the Eau Claire school board, member Trish Cummins requested a meeting with legal counsel outlining the district's responsibility in the matter.
An Oct. 24 e-mail message from Cummins to her fellow board members and district administrators reveals Cummins' concern about the issue.
But instead of addressing the issue, administrators to whom the message was sent - interim Superintendent James Leary, Deputy Superintendent Gregg Butler and Personnel Director Jim Kling - failed to respond to the request, prompting questions about their apparent attempt to keep the contract change under wraps, Cummins and other sources said.
The message notes Cummins' coming to terms with "the gravity of the situation" and questions the legal and ethical responsibility of board members related to the contract change that allowed Klaus to begin receiving his $225,000 retirement stipend payments earlier than allowed.
"I didn't know if this was criminal or a personnel issue," Cummins said Wednesday. "But I didn't think we could say, 'Oh well, I guess this happened and we're not going to do anything about it.' I didn't want to be the elected official who turned away from this."
Despite repeated questions about the status of seeking legal counsel, Cummins said she received little response from administrators, even as Klaus' contract alteration received continued discussion during subsequent closed-session school board meetings in November and December.
Other sources familiar with the situation confirmed that administrators with knowledge of the contract change were reluctant to reveal information about it, even to board members. Several board members said they didn't realize the full scope of the contract change until an April 19 Leader-Telegram story detailing how former board PresidentCarol Olson, at Klaus' request, signed and backdated a document stipulating that Klaus' stipend payments begin on Aug. 1, 2007.
"After going through the (school board investigation), there was a lot more information available (on Oct. 22) than was given to us that night," board member Ken Faanes said.
District officials say Klaus did not receive any of that money - to be paid over five years - after the document signed by Olson was questioned. The matter has resulted in ongoing police and school board investigations, and Klaus was placed on administrative leave from his job as Northstar Middle School principal.
Klaus has said he believed the board had approved his receiving that money as part of contract changes it approved on Feb. 5, 2007. He said he met with Leary, Kling and former school board President Michael O'Brien during late summer or early fall in an attempt to resolve stipend payment questions.
Board members said they never discussed granting Klaus early retirement payments and noted that administrators kept them in the dark about the issue even after the Oct. 22 meeting.
"I am uncertain as to why my request was not met," Cummins said, "and to not even have it addressed was very frustrating. As a board member I represent the community, and I believe most members of this community would have looked at this and said, 'What the heck is going on?' "
Leary, Butler and Kling did not return messages Wednesday seeking comment.
Administrators weren't the only people who apparently withheld information about the topic. District officials familiar with the situation say O'Brien knew about the contract change before the Oct. 22 meeting but didn't inform fellow board members.
O'Brien has said documents related to Klaus' contract sought by the Leader-Telegram should not be made available to the newspaper because that issue had been discussed in closed session. He has refused further comment on Klaus' contract.
In April, district officials granted the Leader-Telegram access to Klaus' personnel file, and the school board subsequently ordered other documents turned over to the newspaper. Some of those records still have not been released.
In the meantime, the school board and police investigations continue. The school board has interviewed six district employees, including Klaus, but hasn't announced any possible disciplinary action. Reports from the police investigation will be forwarded to Eau Claire County District Attorney Rich White, who will decide whether to file charges.
Emerson can be reached at 830-5911, 800-236-7077 or julian.emerson@ecpc.com.
Monday, June 2, 2008
The Fund Balance Explained
Folks,
Here is an essay by Dan VandeWater explaining the proper use of the Fund Balance. I am in complete agreement with him on its judicious use.
Maria
Updated: 5/27/2008 4:32:01 PM
Fund balance school safety net
By Daniel Van De Water
A letter to Voice of the People on May 16 raised questions related to the school district's "fund balance." The "fund balance" of an organization is simply the difference between its assets and liabilities. The primary component of the school district's fund balance is its designation for working capital. Working capital is used to cover the timing difference between when the school district receives its revenue and when it has to pay its bills. Fund balance is increased when revenues exceed expenditures in a given fiscal period.
The Department of Public Instruction suggests that a school district's fund balance be "an amount sufficient that short-term borrowing for cash flow could be avoided and would also allow the district to set aside sufficient assets to realize its longer range goals."
The school district's fund balance has grown from $9,215,079 on June 30, 2000 to $19,656,931 as of June 30, 2007. Even at the current level, the fund balance is not sufficient to avoid short-term cash-flow borrowing. Short-term borrowing for the 2007-08 school year is $6,250,000. The loan runs from Oct. 9, 2007, through Aug. 29, 2008. The net interest rate is 3.42 percent. The interest expense that will be booked this year will be $227,755.24.
In addition to avoiding short-term borrowing and the associated interest costs, a school district with an appropriate fund balance can:
- Accumulate sufficient assets to cover unforeseen expenditure needs.
- Demonstrate financial stability to preserve or enhance its bond rating, thereby lowering debt issuance costs.
As a good steward of the taxpayer dollars entrusted to the school district, all available funds are invested to earn interest. The safety of principal is always the first criteria in selecting an investment opportunity. The school district earned $734,527.02 in interest income during the 2006-07 school year. The school district also has to pay interest on the money it borrows short term. The school district paid $371,328.67 in interest expense during the 2006-07 school year.
The school district takes its fiduciary responsibilities seriously. The Finance Department maintains detailed records of all monies received and expended. Annual cash-flow projections are made and presented to the Board of Education in open session. The board takes action on all short-term borrowing at which time the term of the loan, the interest rate and the successful bidder are explained. Anyone interested in seeing the day-to-day activities and daily cash balances for the 2006-07 budget, or for any other period of time for that matter, is invited to contact the school district's Finance Department.
Van De Water is executive director of business services for the Eau Claire school district.
Here is an essay by Dan VandeWater explaining the proper use of the Fund Balance. I am in complete agreement with him on its judicious use.
Maria
Updated: 5/27/2008 4:32:01 PM
Fund balance school safety net
By Daniel Van De Water
A letter to Voice of the People on May 16 raised questions related to the school district's "fund balance." The "fund balance" of an organization is simply the difference between its assets and liabilities. The primary component of the school district's fund balance is its designation for working capital. Working capital is used to cover the timing difference between when the school district receives its revenue and when it has to pay its bills. Fund balance is increased when revenues exceed expenditures in a given fiscal period.
The Department of Public Instruction suggests that a school district's fund balance be "an amount sufficient that short-term borrowing for cash flow could be avoided and would also allow the district to set aside sufficient assets to realize its longer range goals."
The school district's fund balance has grown from $9,215,079 on June 30, 2000 to $19,656,931 as of June 30, 2007. Even at the current level, the fund balance is not sufficient to avoid short-term cash-flow borrowing. Short-term borrowing for the 2007-08 school year is $6,250,000. The loan runs from Oct. 9, 2007, through Aug. 29, 2008. The net interest rate is 3.42 percent. The interest expense that will be booked this year will be $227,755.24.
In addition to avoiding short-term borrowing and the associated interest costs, a school district with an appropriate fund balance can:
- Accumulate sufficient assets to cover unforeseen expenditure needs.
- Demonstrate financial stability to preserve or enhance its bond rating, thereby lowering debt issuance costs.
As a good steward of the taxpayer dollars entrusted to the school district, all available funds are invested to earn interest. The safety of principal is always the first criteria in selecting an investment opportunity. The school district earned $734,527.02 in interest income during the 2006-07 school year. The school district also has to pay interest on the money it borrows short term. The school district paid $371,328.67 in interest expense during the 2006-07 school year.
The school district takes its fiduciary responsibilities seriously. The Finance Department maintains detailed records of all monies received and expended. Annual cash-flow projections are made and presented to the Board of Education in open session. The board takes action on all short-term borrowing at which time the term of the loan, the interest rate and the successful bidder are explained. Anyone interested in seeing the day-to-day activities and daily cash balances for the 2006-07 budget, or for any other period of time for that matter, is invited to contact the school district's Finance Department.
Van De Water is executive director of business services for the Eau Claire school district.
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