School Board Finally Approves Plan to Address Financial Crisis
The Madison County School Board met and approved new contracts with the Teachers Union that approved two furlough days between now and the end of the school year. This will save the District about $110,000.00 for the remainder of this school year. The Union requested the lost income from the furlough days be spread over the remaining pay periods and not all in one month. The Board approved their request. The Board members also participated in the cuts by cutting their own salary by 5% for the rest of the school year.
The changes only help with short term needs but does not address the long term concerns. The Board will still need to make staffing cuts for next school year to try and get the Fund Balance back up to the 5% the Board Policy requires. The State Department of Education requires a 3% Fund Balance for school districts and the changes made at the meeting helps the board achieve the 3% requirement. An insurance cost share adjustment of $354,000.00 back into the budget also contributed to the improved Fund Balance.
With all the changes made the Fund Balance will be about 3.6%. Staffing cuts along with other cost savings measures will need to be made for the next school year to help get the Fund Balance back above the Board required 5%. The Board will select members of the community to form a committee that will look at ways to help reduce speeding and allow the district to become financially secure for years to come and present their recommendation back to the Board.
To watch the video of the meeting click here.