Mar 3, 2015 3 min read

This is in response to Tom Bodnovich’s Feb. 15 letter regarding the financial situation in Trinity Area School District.

Recently, Trinity’s auditor released the results of the 2013-14 audit. This audit, coupled with the auditor general’s report, identified the actions that have led to Trinity’s current financial state.

• From 2011 to 2014, spending increased, and in at least two of those years, spending exceeded revenue. In the 2012-13 school year, Trinity’s spending was over budget by $2.9 million. At that time, Trinity’s leadership chose not to raise taxes, and despite the warnings of the auditors, used general fund money to make up the $2.9 shortfall. From 2010 to 2013, the general fund balance decreased from $5 million to $940,000, a decrease of 80 percent. This is akin to not being able to control your family budget and using your retirement or savings account to pay for food and utility bills. Using the fund balance to balance a budget, such as the previous board did, depleted Trinity’s “savings” account.

• Besides flagrant spending, the teacher’s retirement plan, dictated by the state, continued to increase, costs for charter school students were on the rise and special education costs skyrocketed. At the same time, state funding was drastically reduced in these areas. During 2007 and 2008, the board approved a tax decrease, only compounding the problem by decreasing Trinity’s revenue. Districts today that are in solid financial shape are the ones that anticipated future increases and expenses, and minimally raised taxes and controlled spending. That was not the path chosen in Trinity.

• The auditor general’s report, which covers 2008 to 2012, states that “Trinity is in a financially declining position. The district passed an unbalanced budget for the most recently completed school year (2011-12). As a result, the district did not comply with the Public School Code. This noncompliance could cause the district to incur a deficit fund balance … The passing of a budget with a deficit fund balance is an indicator of poor governance by the board of directors and an inability of the administrative staff to accurately prepare a valid budget.”

• The audit report also addressed the $5 million dollar bond issue. The auditors stated that payments in excess of 10 percent of the budget could negatively affect the educational programs of the district. This is the situation in which Trinity finds itself.

Due to past decisions and increased expenses, both seen and unforeseen, current Trinity administrators and school board members are being forced to make difficult decisions. Continued spending and a refusal to raise taxes had a devastating effect on the district’s cash flow. It would be irresponsible of this board to continue those actions and not consider raising taxes. However, that is not the only avenue Trinity is exploring. Reviewing and restructuring Trinity’s debt to be in compliance with the auditor general’s recommendation is one consideration. Continued curtailing of spending, as was initiated in the 2013-14 budget, is paramount to getting Trinity back on track.

The board has and continues to have public meetings for the purpose of discussing all of our options. The public is invited and encouraged to attend finance meetings. Refer to the district’s website for meeting information.

Jennifer Morgan

Washington

Morgan is the president of Trinity Area School Board.