AUDITOR WARNS JACKSON SCHOOL BOARD TO WATCH MONEY

JACKSON -- The Jackson Board of Education was warned in an audit report Tuesday to monitor spending so that fund balances do not shrink below manageable levels this year. Auditor Jim Hillin presented a report regarding the fiscal year that ended June 30. He told board members all the fiscal reports appeared to be in order, but the district's enrollment growth in recent years caused increased expenses in many areas last year. At the same time, state funding came in below projections, which meant the district's spending outpaced its revenue last year.

The district's current general fund balance of $2.26 million is enough to cover about one and one-half month's operating expenses. Because revenue can be greater in some months than others, the school board should monitor its spending to ensure it does not allow the general fund balance to shrink much in the next fiscal year due to deficit spending, Hillin said.

Administrators are projecting a decrease in the general fund to $1.8 million, which would only cover about one month's operating expenses."At some point in time you're going to have to grapple with the expenditures that are outpacing the revenue," said Hillin. "You've had a few years when that wasn't a problem, but I think those days are behind us."