Valuations could impact schools

— Gentry’s School District remains in good financial shape, but with future funding less than certain, care and caution is being urged for future expenditures.

“Things are going as planned,” Gentry superintendent Randy Barrett reported at Monday’s school board meeting, “with an operating fund balance of more than $1.5 million(at the close of Period 4 of Fiscal Year 2011). “We’re in good financial shape at this time,” he said.

Barrett reported $1,531,249 in the operating fund without categorical money and $2,383,169 including all money in the operating fund. He said the district’s ending balance, counting all funds, for Period 4, was $4,639,612.

Yet Barrett cautioned board members about the future, saying thatproperty valuations are expected to fall and that could significantly reduce income for the district in two years.

With a chart, Barrett pointed out that district income could be reduced by more that $122,000 per year if property valuations fall 5 percent, almost $245,000 if valuations fall 10 percent, $367,000 if 15 percent, and nearly$500,000 if the valuations are reduced 20 percent.

Though the first 25 mils are backed up by the state with a set amount per pupil, the remaining mils are not, he said.

“I’m not trying to cause alarm,” Barrett said, “but we have to think ahead, look at our numbers and be cautious and prudent in how we spend our money,” he said.

News, Pages 2 on 11/17/2010