The Haines Borough school board last week heard the district is carrying a general fund balance of $906,000.
Carlson said the amount was “hefty,” but “this is all the revenue we’re going to get and and there can be unexpected expenditures.” He also said he expected the amount to drop.
“The school district needs to position itself for 2017, 2018 and 2019 and beyond,” Carlson said. “Health insurance (costs) could go up substantially. Oil prices closed today at $30 per barrel. Last year, the Legislature talked about cutting the (base student allocation) $200 per student when oil was at $65 a barrel.”
Carlson noted that 96 percent of the district’s budget was in some way tied to the State of Alaska and the price of oil. “I think there’s reason for concern and the district needs to position itself to weather the storm.”
Carlson said he expects the fund balance amount to decline, but that it would also exceed the roughly $500,000 (or 10 percent of operating budget) that school districts are allowed to carry over into a subsequent fiscal year.
Districts are permitted to move money in excess of the fund balance cap into funds – such as a technology fund – and can return the money to the general fund later, he said. However, the amount over the cap can’t be used for staffing or insurance.
The district previously put money over the cap in its “880 fund” for equipment.
“The key is you have to assign a specific use. You can’t just assign the money to technology. You need a plan for how the money is going to be used. It has to be thought-out and specific. It can’t be a lump sum,” Carlson said.