South Tama has a strong reputation for being fiscally responsible and has traditionally maintained appropriate levels of cash, general fund balances, and a strong solvency ratio. Having appropriate reserves has allowed the district to survive the past three reductions (Dec. ’08, Phase 1, & Oct. ’09) in state aid without entering financial deficit or resorting to “slash & burn” reduction strategies. With the 10% across the board cut and the drop in student enrollment (159 less students in 3 years at approximately $5788 per student), our financial position has changed. This requires a shift in the district’s spending patterns.
IASB and other school finance expertise advise that districts use these indicators of financial health when making decisions.
- Staff Costs as percent of total general fund expenditures (Approx. 82%)
- Enrollment Trends (SY ’08-’09 1594 , SY ’09-’10 1514)
- Unspent Budget Authority
- Solvency Ratios (Recommended Ratio: 5% to 10 %)