Board reallocates $5.22 million in fund balance to cover higher-than-expected costs

The Rich One School Board of Commissioners on June 9 approved the administration's request to reallocate $5.22 million from the FY2024'25 unassigned general fund balance to cover higher-than-anticipated departmental costs.

Miss Bing told the board the reallocation addresses increased costs for custodial third-party services (janitorial, pest control, equipment and supplies), facilities management repairs (including HVAC work deemed necessary for safe occupancy), and pass-through increases tied to the SRO contracts and salary/benefit adjustments from partner agencies. The administration provided a breakout in the meeting memo.

Commissioners asked whether the security contract amounts include equipment (cars, radios) and whether alternative funding sources had been pursued before reallocating fund balance. Mr. Grant responded that the district pays for salaries and benefits (approximately 75% of those officers' compensation) but does not pay for vehicles or equipment. He also said the district's longstanding practice of funding SROs prior to some state grant programs limited eligibility for certain grant funds, reducing alternative funding options.

Board members also clarified that extra security costs for athletic events previously charged to individual athletic budgets are being moved to the district budget under the reallocation, which administrators said addressed an immediate funding shortfall for late-season activities.

The motion to reallocate $5.22 million passed unanimously. Administration indicated a detailed memo accompanies the agenda with line-item breakdowns and said staff will continue to monitor costs and report back to the board.