MADISON – The Madison City Schools district will end fiscal year 2012-13 with money in the bank for the fourth consecutive year.

Dr. Dee Fowler, Superintendent of Madison City Schools (CONTRIBUTED)

In presenting year-end figures, chief financial officer Mike Weaver told the Madison Board of Education that the district has $1.06 million in revenues over expenditures.

“The $15.22 million in reserves for the new budget year is enough to cover 76 days of operating expenses,” Weaver said. The state requires school districts to maintain a 30-day reserve, but the Madison board extends that amount to two months.

This extended reserve serves as a safeguard for unexpected expenses, unfunded mandates, fluctuations in the economy and growth challenges, Weaver said. Healthy reserves enabled the school district to open James Clemens High School since state funding is allocated in arrears, Madison City Schools Superintendent Dr. Dee Fowler said.

Fowler commended Weaver and the board for due diligence in managing the budget.

“The constant monitoring of the budget and the monthly adjustments have proven to be invaluable,” Fowler said. “Keeping a watch on revenues and expenditures allows the board to get a greater benefit of all revenues.”

In 2009, expenditures exceeded revenues by $1.9 million for the Madison district, due to $4.6 million in state budget cuts from proration, Weaver said.

A major factor in the Madison district keeping a financially stable model is “maintaining personnel costs at or below 80 percent of all total costs,” Weaver said. In addition, department heads and schools do not have ‘spend-or-lose’ funds like many governmental agencies.

“The system’s just-ended operating budget was $73 million,” public relations manager John Peck said.

In other announcements, Weaver commented on ways that the Affordable Care Act will affect the Madison district. One effect will be to establish a broader pool of substitute teachers to limit part-time hours.