Now that the state of Indiana has determined new school funding formulas, the Culver School Corporation stands to lose revenue. Many rural school districts are facing a similar predicament due to reduced student populations.
In order to counteract some of the funding changes, Culver needed to change a policy regarding its rainy day fund.
Superintendent Vicki McGuire says there were previous restrictions on the funds.
“The way it works: you cannot take Rainy Day funds and put it in the General Fund to pay staff, but if you have a resolution, you can spend that on paying staff if you need to and we’re kind of at the point where we’re needing to do that,” says McGuire.
The Culver School Corporation has spent time over the last few school board meetings reviewing budget estimates in preparation for a few changes.
Amending the “Rainy Day” fund is anticipated to make up funding gaps in the current fiscal year, and likely the next. Culver schools stand to lose more than $700-thousand over the next two years.
McGuire says making the “Rainy Day” fund last requires continually feeding it.
“You only can feed it under certain legal circumstances, and if you happen to have an unencumbered amount of money in other certain funds, we have to be very careful so we can feed the Rainy Day,” says McGuire.
Rainy Day funds can now be used for special education, utilities, property, insurance, and emergency purposes. Culver says the fund will last a few years.
The Culver School Board approved an amendment to the “Rainy Day” fund resolution, unanimously.