As board president, let's hope that Sodemann understands how fund accounting works better than he tried to explain it. Just link that video from the finance guy where he tried to explain it to the board.

Here, I hate to cut and paste him but I'll save him the time of having to come on here and review those too slow to get it the 10th time.

On Janesville School Board eyes reserves to balance budget
Posted on October 21 at 6:56 a.m. ( Suggest removal )

wislady:

As to your question about the "fund 10" account being a "rainy day " fund. The answer is both no and yes. The fund itself is our main checking account. Because our revenue is not evenly spaced out, the fund will drop into the single digits (millions) during the year even though it will end up at its higher end on June 30th when we close out our fiscal year.

It is also our policy to maintain certain percentages (cushion amounts) in the fund balance to avoid things like short term borrowing and to cover the unexpected (boiler breaks down etc.) in both our regular operating budget and in case we have unusually high health insurance claims as we are self-insured.

So although the fund itself is not a "rainy day" fund, part of the fund balance is designed to be kept in reserve for a "rainy day" if you will.

FYI - My goal is not to change the policy just so we can spend more. To me, the existing policy does not make sense mathematically as it double counts insurance reserve needs. Although we will need to tap into our fund balance one more (this current) year due to the contracts that we have in place etc., it is my desire that any additional amount be used to fund our OPEB liability which continues to grow every year.

I hope that helps.

Sincerely,
Bill Sodemann

It would be interesting to see how much the premiums paid in versus claims paid out have been for say the last 10-20 years. It seems like this is info the taxpayers are entitled to know.

Here we go again. Maybe a board member could enlighten us as to the Fund 10 debate. Is $30 million the high balance? Does that occur right after property taxes or State Aid is received? Sort of like how our checkbooks have a high balance on payday, but it doesn't stay that way?

The fund has built up over decades from literally hundreds of budget accounts from the district, and yes, the self insurance fund for all employees, not just teachers, is one of those accounts but not the only source of funds that have flowed into the account. It is also used, and there have been years this has happened, to pay for excess claims in years where health costs have exceeded budgeted revenue so that door swings both ways.

jcommon, SDJ is self insured. For several years now, the district has collected more in premiums than it has paid out in claims. This extra money ends up in Fund 10, which is basically the district's checking account which has been as high as $30 million.

Knilans is susceptible. Political tools on the school board could have run against him in the primaries and been closer to their dreams of state office.

Maybe next time, Rocksolid. Something to put your $18 towards -seed money.

Even a small tax cut must be a bitter pill for Deb Kolste. Her campaign should explain how much she would want to increase our property taxes to pay off her union supporters.

LaborParty,
How are the reserves the teachers healthcare monies?
Please elaborate

Oh brother !

Better to have that 18 bucks in a mothers pocket than in the teachers union coffers. Lol!

Patriots, that is not your $18 since your Mom pays that property tax bill. So don't be buying more chips and donuts for the basement. Let her use it to go play bingo or something.