POLL: Zero Out School's Revenues To Fund Programs?

Should Melrose Schools use any available cash to prevent the elimination of programs now? Or should it save with an eye toward the future?

The draft fiscal 2013 Melrose Public Schools budget presented to the School Committee last night would use all of the district's applied funds to prevent elimination of programs next year, ending the year with a zero balance.

Melrose has leaned on its applied funds accounts in recent years to weather the fiscal storm and avoid staff and program reductions, but has not tapped the well completely dry.

"This proposed budget relies heavily on all applied fund account balances, which will be drawn down to zero in fiscal 2013 so that Melrose Public Schools can continue to provide existing programs rather than eliminate programs," the budget's narrative reads.

School department revenue funds are accounts that are separate from the local budget until the money is applied and used as revenue to support the budget, according to the budget narrative. The applied funds essentially serve as the district's savings account and include fees, rent, tuition, Circuit Breaker (special education reimbursements from the state) and Medicaid reimbursements.

Melrose Public Schools projects to bring in $2.84 million in applied fund revenues this current fiscal year, on top of the $2.29 million in savings the district had at the beginning of the year.

After spending $3.13 milllion in applied funds this year, those funds are projected to have a balance of $837,601 at the end of the year. Next year, the district projects bringing in $2.28 million in new applied fund revenues, resulting in $3.12 million available.

The draft fiscal 2013 budget would use all of that $3 million plus in revenue to balance the books for the school year—roughly the same amount spent this year.

Is this the right course of action? Take our poll and expound on your vote in the comments below.