ECASD may dip into cash reserves for 2012-2013 budget
(WEAU) – The Eau Claire School Area District is hoping to avoid serious budget cuts for the current school year.
But that could mean using almost $5 million dollars in cash reserves to fund the gap.
It’s been a few years since the district dug into its cash reserves. But the Director of Business says this decision isn't unexpected.
The Director of Business says that $5 million dollars is coming from a $26 million dollar working capital. It’s set aside for emergencies, but also just to get from one year to the next.
But that could mean a referendum or budget cuts next year.
"I know this is tough times right now so their looking to squeeze every penny,” said Angela Parkhurst, parent in the Eau Claire Area School District.
Angela Parkhurst has two children in the Eau Claire Area School District and she understands there is a cost to everything.
"As long as they use it for a long term benefit then I think that probably is a good use of the money,” said Parkhurst.
"The budget this year has a gap that exists between projected revenue and projected expenses. When you have that situation you fill the gap with something and where you go is working capital,” said Dan Van De Water, Director of Business.
Dan Van De Water says this budget could make tax payers happy.
What this budget is proposing is a decrease in the tax levy by 1.9%.
That means the owner of a $150,000 dollar home would save about 21 dollars on their property tax bill.
"There is always a cost to everything so if I'm going to save some money now that's great, I just hope the trade-off is going to be worth it,” said Parkhurst.
But a referendum could be in the works to balance the budget for the 2013-2014 school year.
"School districts are very limited in their sources of revenue,” said Van De Water.
"For me to get a little bit of money now versus them not having enough money later. I think it's not a good tradeoff,” said Parkhurst.
Angela says she has seen budget cuts first hand already..
"For example, like field trips my daughter's school they've been less and less discontinued, and we've had fundraisers to fill that type of gap,” said Parkhurst.
The next step is for the school board to discuss the budget on September 24th and October 1st.
They also have a meeting scheduled October 22nd to adopt this year's budget.
