Schools show budget surplus

Jay Schools ended 2018 with a healthier general fund balance after recording the second-largest positive cash flow in 23 years.

But tough decisions remain ahead.

“We are not out of the woods yet,” superintendent Jeremy Gulley told Jay School Board during its organizational meeting Monday night.  “We are going to need to keep our eye on this. … There’s more to be done.”

Though the board adopted a major school consolidation plan in December, Gulley noted that it will be 2021 before the cost savings from that plan materialize.

Between now and then, interim business manager Mike Bush said declining enrollment will push the general fund back into deficit cash flow unless additional spending cuts are made.

“2019 is going to be another challenging year from a financial perspective,” said Bush.

Gulley said he and Bush will return with options on spending cuts at the board’s Jan. 21 meeting.

Earlier cuts through school closings and staff reductions led to a positive cash flow of $425,853 in 2018, allowing the corporation to end the year with a general fund cash balance of $1,874,893. Though that figure is below the board’s targeted goal, it is still a dramatic improvement.

“It took everybody,” said Gulley, noting that over a two-year period Jay Schools has eliminated 36 positions.

“It was a group effort from a lot of outstanding people,” said Bush. 

He commended former business manager Brad DeRome for the accuracy of his 2018 financial forecasting and everyone involved for making the difficult decisions to cut spending. DeRome retired from Jay Schools last month to accept a role with Muncie Community Schools.

Bush also noted that higher interest rates have helped boost cash balances. The school corporation earned $105,877 in 2018 thanks to an interest rate of 2.51 percent. That compares to $39,723 in 2017 when the interest rate was 1.44 percent and $17,846 in 2016 when the interest rate was 0.68 percent.

In other business, board members Phil Ford, Donna Geesaman, Chris Snow, Krista Muhlenkamp, Mike Shannon, Kristi Betts and Ron Laux unanimously:

•Elected Ford as board president, Laux as vice president and Muhlenkamp as secretary.

•Approved the local firm of Coldren, Frantz and Sprunger and the  firm of Church, Church, Hittle and Antrim of Indianapolis as corporation attorneys. Geesaman, however, noted she opposed the use of the Indianapolis firm as negotiators on contracts with the Jay Classroom Teachers Association.

•Appointed Violet Current interim treasurer and Shannon Current as interim deputy treasurer. The two were also authorized as users of the corporation’s safe deposit box.

•Appointed Amy Reinhart and Violet Current as small claims court representatives. (Betts abstained because of a family relationship.)

•Accepted board conflict of interest statements.

•Saw Betts, Ford and Laux appointed to the teacher contract negotiation committee, Betts and Snow appointed to the legislative committee and Geesaman and Muhlenkamp appointed to the insurance committee.