Board approves budget amendments as district keeps watch of crucial reserve fund balance

The School Board of Manatee County and its board members are keeping a close eye on the budget as the fiscal year comes to an end.

The magic number? Three. State law requires districts to maintain a 3 percent reserve fund balance, and after three years of exceeding the mark, Manatee is close to slipping below the threshold.

During Tuesday night’s board meeting, school board members approved a series of budget amendments district officials recommended, including a $1 million decrease in the general fund and a $5 million decrease in the capital outlay budget.

District chief financial officer Rebecca Roberts and budget director Heather Jenkins said the general fund changes were necessary due to an anticipated decrease in revenue for school-age child-care fees and transportation fees, and the capital outlay budget was impacted as a result of sales tax and impact fee revenue received minus allocations to current projects.

The amendments passed in a 4-1 vote, with only board member Karen Carpenter opposing. Carpenter has raised questions about the district’s practice of transferring funds between accounts, and on Tuesday she sharply questioned Roberts and district staff on making such large budget amendments.

“It’s like I have to suspend my disbelief here; I have serious questions about these numbers,” Carpenter said. “I will not vote for this.”

Roberts said it was better to adjust the budget now rather than expect the funding to come through at the end of the year and be left with less revenue than anticipated.

After the meeting Roberts said she was optimistic the district would end the fiscal year with the required amount in the reserve fund.

“I’m hopeful that we can save additional funds,” Roberts said. “We’ve asked everyone not to spend unless they have to spend.”

Roberts also said adjusting the budget as spending needs change throughout the year is a standard procedure other districts follow as well.

“Talk to any other CFO and they will tell you the same thing,” she said.

Board member John Colon said he had confidence in the district’s management of the finances, but he also understood Carpenter’s hesitance.

“There are always questions when you are moving large amounts of money around,” he said. “We didn’t have a full understanding. It’s better to ask a question than make a mistake.”

This story was originally published May 9, 2017 at 9:06 PM with the headline "Board approves budget amendments as district keeps watch of crucial reserve fund balance."