HCS approves 5-year forecast

The Hillsboro City Schools Board of Education approved the district's five-year forecast this week, and while the current financial status is sound, district leaders say that with the pending state budget, the financial future is uncertain.

During the board's regular meeting held Wednesday, May 18 in the Hillsboro High School/Middle School Library, the board voted 6-0 to approve the five-year forecast, as recommended by district treasurer Debbie Lawwell.

"The five-year forecast in May is an update of what happened this year and a projection for the next four years," Lawwell said. "The forecast for this year shows a larger cash balance than projected at $3.9 million. The $200,000 increase is mainly due to decrease in expense and an increase in revenue in delinquent taxes collected and open enrollment.  In year 2012 the deficit spending of around $75,000 has been reduced to around $50,000 through tightening the budget and attrition which makes fiscal year 2013, fiscal year 2014 and fiscal year 2015 look much better."

Lawwell said that while 2012 looks good for the district, unknowns in the state budget makes the finances for following year uncertain. 

"The financial future of Hillsboro looks good," Lawwell said. "My only concern is the new governor's budget only really commits to one year, which begins July 1, 2011. The second year, I am sure, will come out over this summer, but rumor has it that it may not look that great. I recommend to the board that we continue to be proactive in financial decisions. The superintendent (Rick Earley) and I will continue to monitor budget closely and make every effort to cut expenses without jeopardizing the education of students."

Earley said that he had to commend faculty and staff for their efforts in making sure the district stayed under budget, and worked to keep expenses down.

"Financially, the staff was very conservative," Earley said. "They played a very big part in getting where we are at. I'm not seeing as many purchase orders come across my desk. I think they understand the difference between needs and wants. They understand and appreciate what we are trying to do."

Earlier in the year it had been projected that the district would end the year with slight deficit, or breaking even. Board member Ken Shull, and finance committee chairperson, said that Lawwell's earlier projections were correct and it appears the district will not have a deficit at the end of the fiscal year, which ends June 30.

"We are in good financial standing," Shull said. With reports of districts statewide making drastic cuts, "We are fortunate not to be in that position."

Regarding the monthly financial report, Lawwell said the cash balance was $4,739,987, compared to this time last year when it was $5,149,280. She said there was a difference because the district did not receive all of the real estate taxes, so there will be an increase in the month of May.