Hopkins School District Finances Get Good Review
The Citizens Financial Advisory Committee also recommended that the district continue to maintain a strong savings.
A Hopkins school district financial committee has given the district high marks but urges continued caution because of continuing economic uncertainties, particularly in the state Legislature.
In a report presented to the School Board last week, the Citizens Financial Advisory Committee (CFAC) praised Hopkins’ financial management and the district’s forecasting model. But it recommended that the district continue to maintain a strong savings in light of a pessimistic outlook for revenue increases in the short and medium term.
Click on the PDF to the right to read the full report.
CFAC, a five member-group that advises the district on financial planning, noted that enrollment continues to decline and that any funding increases from the state are likely to be small.
CFAC found that the district’s level of savings is healthy and in line with neighboring districts but recommended that the district only use that savings for:
- Smoothing out expenses and revenue fluctuations;
- Making up for sudden revenue shortfalls, such as a big enrollment drop or cut in state money;
- Unexpected expenses, such as legal fees and major disasters and
- “extraordinary one-time investments.”
The district could also use any savings greater than 10 percent of the district’s budget—currently 6.47 percent—for investments that could help the district. But that investment should only be used for one-time items or programming that attracts and retains enrollment, the report argued.
The School Board will use the CFAC report to guide its budget development process.