One more aspect of the budget analysis from Tuesday night is worth going over. First off, our district is graded by the state on our financial strength (ironic isnt it?) Basically, we are graded on the number of days of reserves that we have. In other words, if we didnt receive any money from the property taxpayers or the state, how long could we operate before running out of money. Morton has had the best grade (a 4) for as long as I have looked in the past. (It is on the ISBE website) In order to get a 4, you have to have between 120-180 days of reserves. For the past three years, we have had well over 240 days reserves in most funds. I feel as part of good stewardship of the taxpayers money (and that whose money it is), we should always be looking at the future to see what could happen. The two biggest items that could affect our finances are the state pensions being forced down to us and if the state stops sending us money. (Although we dont get much) The figures you see published on our website are some pretty bad numbers, but keep in mind a couple of things: 1. They are assumptions. As of now, the state hasnt pushed those items on us, but they could. 2. If the state does this, we will start making adjustments to what the district spends. The figures assume that no change is made, which is not true. 3. The biggest thing to realize is that even under the pension shift issue, we still maintain 120 days or more of reserves. Also, keep this mind that we have a very strong balance sheet and although it would hurt Morton 709, imagine what it would do other districts with worse balance sheets, what may give us a cold, will give other districts the flu. There would be a run on the state capitol. (Of course, we already have reasons to already, right?) I post this for two reasons, first off these analysis cant be explained in a short sound bite and in fact, can be dangerous if used for other purposes than intended and secondly, shouldnt your elected officials look to the future to anticipate and possibly plan for them, instead of worrying about the next election cycle?
Posted on: Mon, 14 Jul 2014 02:39:50 +0000
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