State May Claim Emergency School Funds If Not Spent

By Linda Kor
   The Joseph City School District faces a potential loss of $33,000 if the state legislature should pass a proposal as part of the 2009-10 budget to remove cash balances that are left in school district accounts at the county treasurer’s office as of Jan. 1, 2010.
   According to district business manager Carol Henderson, this is an outrageous possibility, “For many years, there has been a $33,000 line item in the capital outlay fund that the governing board put there as a cushion against an emergency in the district. If these funds are still in the account as of Jan. 1, they will be taken and sent down to the State of Arizona to help balance the budget.”
   According to Henderson, if the state takes the money, the district will have a negative balance until January 2010, when the next taxes are collected and the district will have to pay interest to borrow money, since the county treasurer will not honor warrants unless the district has the cash to pay them.
   “I have written our legislators and expressed my outrage at this plan. Because we depend so much on local taxes, we will have a significant cash balance after all the expenses and encumbrances for fiscal year 2008-09 are paid.”
   The board approved a motion to spend the $33,000 capital outlay cushion if the bill passes. Henderson’s suggestion is that it be spent on new doors and safety hardware for the doors district-wide. She noted that the funds would be replaced during the 2009-10 year after the cash sweep of the accounts has been done.
   In other business May 12, the board:
   * Approved a fiscal year 2010 appointment of Hillari Hardt as an elementary teacher.
   * Approved the appointment of lifeguards, including William Bushman, Malissa Farnes, Mackenzie Fields, Natalie Griffith, Brock Hansen, Cassie Pugh, Kaylee Pugh, Shelby Sepp, Elizabeth Elsen and Cassie Gardner.
   * Approved a fiscal year 2010 contract revision to full-time for Kourtney Hendricks, Joseph City Junior High School language arts teacher.
   * Renewed Joseph City Elementary School Principal Daniel Hutchens’ contract for two years.