TO: IASBO Members
FROM: Denny Costerison
INTERIM STUDY COMMITTEE ON FISCAL POLICY
On Monday morning, the Interim Study Committee on Fiscal Policy met in Room 431 of the State House to hear several issues including this agenda item – “School District Financial Condition Analysis & Monitoring”. At the end of the last session of the General Assembly, Senator Eddie Melton had prepared a resolution to have a study made of fiscal indicators for school corporations. At the hearing on Monday, the Legislative Services Agency presented a report entitled “Financial Condition Analysis” which provided three procedures to analyze fiscal indicators. Testimony on the issue was allowed and the following individuals or associations testified: Senator Eddie Melton; Jeff Studebaker, Superintendent for the Merrillville Community School Corporation; Theo Boone, CFO, and Alesia Pritchett, Director of Business Services, School City of Hammond; IASBO and ISTA.
IASBO made the following points in our testimony:
- There is no “magic bullet” that will identify fiscal problems for every school corporation.
- Any work on this issue must take into account the provisions of HEA 1009 which creates the Education Fund and Operation Fund beginning on January 1, 2019.
- The fiscal health indicators must use trend data and not data for a specific date.
- It was suggested that the information required on the Standard & Poor’s questionnaire for bond ratings be a part of the fiscal indicators.
- Several fiscal indicators were suggested such as enrollment trends, cash balance trends, Rainy Day Fund trends, impact of property tax caps, etc.
- There should be no grading of school corporations regarding fiscal issues.
- IASBO recommended that the issue of fiscal indicators and monitoring be in the hands of the Distressed Unit Appeals Board.
- A fiscal health review process should be implemented that includes a team meeting with the superintendent, school business official and board president of a corporation that the data shows a potential for fiscal problems. The team would be a representative from DLGF, SBOA and DOE plus a veteran school business official. The purpose of this meeting is to understand the situation and provide assistance to the school corporation.
The interim committee did not make a recommendation on this issue at the Monday meeting, but there may be recommendations coming in their final report.
UPCOMING IASBO PROFESSIONAL DEVELOPMENT OPPORTUNITIES
Indiana ASBO has the following professional development meetings planned in the next few weeks (full agendas and registration forms can be found on the IASBO website):
IASBO Fall Institute – 4 Certification Courses
Tuesday, October 10
- Leadership (ADM110)
- Principles of Education (F110)
Wednesday, October 11
- Public Relations & Internal Communications (F120)
- Governance & Operational Relationships (F130)
All sessions are at the Primo Banquet & Conference Center, Indianapolis
(Please review your portfolio to see if you need any of these courses)
Cash Management & Financial Oversight (B111) Certification Course
Tuesday, October 17
Primo Banquet & Conference Center, Indianapolis
(Please review your portfolio to see if you need this course)
Extracurricular Accounting Seminar
Friday, November 3
Chesterton High School, Chesterton
PORTABLE CLASSROOMS OFFERED FREE
Brownsburg Community Schools is offering twelve portable classrooms to any Indiana school or municipality. Ten units are presently in use as classrooms and measure a nominal 24’ x 45’+/-; these units are not presently equipped with restroom facilities. Two additional units of similar size but a different interior configuration are currently in storage. The ten units currently in use will be available for relocation after June 1, 2018, and all are being offered “free”, with the “purchaser” responsible for relocation expenses. Please contact Barry Gardner at email@example.com if interested.
IASBO Platinum Sponsors – DEEM; PUBLIC TRUST ADVISORS; ICE MILLER; PERFORMANCE SERVICES; AMERICAN FIDELITY