Boone Schools explains $19.2 million balance

By Justin B. Duke • jbduke@nky.com

With legislators eyeing Boone County Schools’ fund balance, the district decided to show where the money is going.

At the recommendation of the Kentucky School Boards Association, Treasurer Linda Schild gave a report of the district’s fund balance.

There have been talks of the Kentucky Board of Education beginning to manage districts’ fund balances, and that would hurt Boone County Schools, Schild said.

“They want to take control of how we spend this money,” she said.

The district currently has a fund balance of $19.2 million. The number can sound large until seeing where the money goes, Schild said.

About $4.2 million of that is designated for school openings and close to $684,000 of that is site based decision making council money that the district is not allowed to spend.

The biggest use of the fund is covering expenses during the summer before property tax bills are sent out, Schild said.

“We have to make sure we make the payroll in the summer and make the mortgage payments,” she said.

From July to September last year, the district had $15.4 million in expenses that were covered by the fund balance because little revenue comes in during that period, Schild said.

Those expenses include utility bills, security and debt repayment.

While trying to cover those expenses, the district also tries to keep a contingency fund between 2 and 5 percent – $3.35 million to $8.36 million, Schild said.

“There isn’t just $19 million out there unaccounted for,” said Superintendent Randy Poe.

With the money being used throughout the year, it’s ironic that leaders who can’t balance a state budget want to try to handle the local school districts’ budgets, said board chairman Steve Kinman.

“It blows me away,” Kinman said.

Boone Schools explains $19.2 million balance