Although Dr. Eastwood blamed the Governor for the increase in next years school taxes, he failed to to take any responsibility or share any blame for the district's current budgetary problems. Dr. Eastwood did not inform the public that he took $5.3 million out of the fund balance reserve to reduce last years tax increase, and to supplement the current year operating budget.
Dr. Eastwood also did not inform the public that in the proposed budget for next year, an addition $4.7 million will taken out of the fund balance reserve. It appears that items that were paid for out of the reserve fund this year will again be covered by the fund balance reserve next year. Instead of using the reserve fund to cover operating expenses, these monies should have been used to cover the current shortfall in State aid, and no job cuts would have been necessary. The fund balance reserves are suppose to be for emergencies, and not for general operating expenses. The budget increase for next year is 6.91%. If Dr Eastwood had obtained the $4.7 million needed for expenses from taxes rather than from the reserve fund, our school tax increase for next year would have been 16.3% and not 6.91%. For every $500 thousand tax unit, the tax rate is increased by about 1%. Clearly, our fund balance reserve fund is not being used for the purpose for which it was designed.
As of June 30, 2009, the fund balance reserve was $18,883,357. For this year and next year, we will spend about $10 million from this fund. This scenario brings to mind Mr. Hoefer's allegations about Dr. Eastwood when he was superintendent in Oswego about depletion of reserve funds. If the current rate of spending is not reduced, the district may face double digit school tax increases in the near future.
