previous use of reserves for ongoing expenses
- I spoke on this last night, and today sent this letter by fax and email to
the Board and Staff on the details of my findings.
June 10, 2003
Dear Ms. Vedovellie and Mr. Stewart:
I spoke at the public meeting last night on the expenditure of reserves for
ongoing expenses. This letter further documents my questioning of prior use
of reserves for ongoing expenses.
My research shows that in the March 12, 2003 District Certification of
Interim Report page 5, the General Fund fund balance of the Board Approved
Operating Budget went from $26,725,184 in July 1, 2002 to a projected
$15,499,659 for June 30, 2003 � a reduction of reserves of over $11M (See
Attached). I do not believe that the report includes the impact of the
recent state deferrals since the projected revenues are actually higher than
the original budget. Reviewing the expenditures, there are only a few
million dollars that could possibly be one-time expenditures. Most of the
increases that are causing expenditures to be greater than revenues are
I am not questioning the accuracy of the reserve, revenue, or expenditure
numbers, but I am puzzled by the approval of using $11M of reserves on labor
expenses. Please explain how the District Certification of Interim Report
can show the use of $11M of reserve on what appears to be ongoing expenses
and not violate the rule of �no use of reserves on ongoing expenses.� This
Certification was found to be positive and was approved by the Board on
March 12, 2003. I am not aware of Mr. Stewart�s role in reviewing or
approving the certification.
The bottom line is that I believe there is a precedent for spending some of
the reserve for ongoing expenses during time of fiscal stress. Maybe it is
done as Mr. Price suggested last night by reclassifying contracts and other
operating expenses as one-time expenses. If is possible to use the
unappropriated reserves (amount above state required) to fund critical
programs for another year or two while other solution are developed, please
let the Board know it can be done.
I look forward to hearing your response to this issue. If you have
questions, you can contact me at (510) 287-0399 (day) or (510) 527-2977. I
am also sending you a copy of this letter without the attachment by email;
you can respond to my email address aweckstein@....
Cc: WCCUSD Board Members
Gloria Johnston, Superintendent
Helen Bean, Kensington School PTA
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