Oysterponds school board to adopt proposed $5.5 million budget

The Oysterponds school board is expected to adopt Superintendent Richard Malone’s proposed $5.5 million spending plan for the 2014-15 school year and two ballot propositions for windows and to establish a capital reserve fund at Tuesday night’s budget workshop, according to the agenda.

Mr. Malone is proposing the district allocate up to $150,000 from the general fund to “replace all existing windows” at the school,” the resolution states.

In addition to window replacements, Mr. Malone has proposed the district establish a capital reserve fund. If approved, the district would be allowed to move year end savings into a reserve account dedicated for facility repairs or upgrades. Voters have rejected the proposition during the past two budget votes. Last year, it failed by 12 votes.

“Some people see this as a slush fund, but it’s the exact opposite,” board president Dorothy-Dean Thomas said during last month’s meeting.

A capital improvement fund line in the budget would be a way for the district to address facility repairs while also managing its fund balance, district officials have said.

Currently, Oysterponds has about $700,000 left over in a general fund balance, Mr. Malone said. Auditors will likely take issue with such a high fund balance, he said, adding that the state may cut off aid to the district because of their substantial reserves.

The state expects Oysterponds to have a fund balance of roughly $220,000, he said.

The Tuesday’s budget workshop is set for 7 p.m. at the school.

Scroll down to view the complete agenda. Check back later for an update.

Oysterponds School Board Budget Workshop, March 25, 2014