School Board Approves Setting Aside up to $3.25 Million
in Reserves
Conservative budgeting and tight control of spending has allowed Huntington School Board members to adopt a recommendation setting aside up to an additional $3.25 million in three reserve accounts. The move will have the ultimate effect of holding down taxes.
Huntington’s external auditing firm, Coughlin Foundotos Cullen and Danowski, recommended the School Board pass a resolution describing how the un-appropriated fund balance will be reserved at the conclusion of the current fiscal year on June 30.
The external auditors aren’t the only voice asking for a reserve fund decision. “While this is an estimate at this time since the books have not been closed for June 30, 2010, the state comptroller also wants the Board of Education to reserve funds on or before the end of the fiscal year,” said David H. Grackin, assistant superintendent for finance and management services.
Trustees voted to reserve no more than $2 million in the capital reserve fund, $1 million in the worker’s compensation fund and $250,000 in the unemployment insurance fund. These are amounts that will be added to the existing balance in each fund.
“We will finalize these numbers once we set the tax rate in September 2010,” Mr. Grackin explained. By setting aside money in reserve funds, the district uses current money to pay for various expenses that would otherwise require it to increase taxes and/or borrow money and pay interest for debt service.
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