District sees some light at end of financial tunnel

A state budget cut has not kept the Cherokee County School District from beginning a financial recovery.

The school district added $950,000 to its budget reserves when summer tax collections came in much higher than expected. The district’s reserves have increased from $3.73 million to $4.7 million since May.

Finance director Ben Childs said the additional money came in after the district had used employee attrition to absorb a 4 percent state budget cut in August.

“We had more tax revenues come when more taxpayers paid their bills than anticipated between May and July. If this money had not come, it would have been lost tax revenue for the school district this year,” Childs said. “This gives us a starting point when the stimulus funds come off the books in a couple of years.”

The school district will turn its application in later this month for federal stimulus money intended to help states offset recent budget cuts. Preliminary estimates indicate the district could receive $2.7 million in stimulus funds in the coming year.

School districts will receive federal stimulus funds for education programs through 2011. The money cannot be used to replace funding for current programs.

But Childs said the additional stimulus funds will only partially offset the impact of state budget cuts caused by a drop in revenue from the nation’s severe economic recession.

“This just gives us some extra breathing room,” Childs said.

The school district is still waiting for information on how it will meet accountability requirements included in a new state law. School districts are required to post all expenses over $100 on their Web sites so the public can view the financial records.

The state Comptroller General’s Office is charged with providing school districts with the tools to make their financial records available online.