HUDSON: The Board of Education approved Treasurer Kathryn Sines' five-year forecast at its meeting last week, and it will be submitted to the state as required this month.
The report must be made each May and October, and Sines says the forecast covers only the district's general fund. This amounts to approximately 70 percent of the organization's financial transactions.
The report shows the district's general fund will remain in the black, with a projected balance of $10,379,043 as of July 1, 2017.
Sines said, "as with all future projections, the financial forecast tends to be less accurate the farther out in time. With changes in state funding, local property taxes, and academic programming, the first year of the forecast tends to be more reliable and accurate than the fifth year."
Her report does show that it is likely the district will begin spending more than it takes in by 2015. Approximately $1,457,050 in spending over income is projected for 2015, and $3,145,050 for 2016. The general fund however, is sufficient to cover these amounts, and will still have a $10 million balance to begin the 2017-2018 school year.
Sines said the May report shows the cash position holding relatively unchanged from the projection last October. The largest percentage of difference from October was the personal tangible property tax line, which now shows projected income of $1,159,000 for 2013, as opposed to $408,000 listed in the October report.
Total operating expenditures were lower than October's projected amounts. The report shows a 3.6 percent reduction from 2010 through 2012, and expenses for 2013 are running slightly under those of 2012.
"We will continue to watch expenditures to maintain a high level of controls," Sines said.