CCSB Approves Money Transfer To Building Fund

RISON - The Cleveland County School Board approved moving more than $290,000 from the general fund into the building fund during a special called meeting Monday evening to close out the books for the 2023-24 school year.Superintendent Davy King told the board that the Cleveland County School District opened the 2023-24 school year with a balance of $982,281.75 in the general fund and closed the year with a final balance of $1,275,191.44. The general fund is used to pay for the maintenance and operation of the school district.The exact amount approved by the school board to be moved from the general fund to the building fund was $292,909.92. By transferring that amount it into the building fund, the district has the option to transfer any money from the building fund back into the general fund, if needed.Technically, King's recommendation was for the board to approve moving 20 percent of the general fund balance into the building fund, thereby keeping the district in compliance with state law. King told the school board that state law does not allow a school district to carry over more than 20 percent of its general fund balance from year-to-year.In addition, he also explained that keeping the closing balance as close to the starting balance gives the district a financial cushion of sorts to make sure the district does not close the new year with a balance that is lower than it starting balance.The state monitors the closing balance for each public school district's general fund. Should a district close the year with a balance that is lower than the starting balance, that district will be put on a fiscal distress watch list. If it happens for a second yea, the state will begin to take action against that district's finances.King said the $292,909.69 will be added to an existing balance of $514,706.04 that is already in the building fund. However, he pointed out that the district still has about $300,000 to pay toward the c...