PICAYUNE —
A shortfall in the amount of money received from the federal government by Picayune’s Early Head Start program forced the Picayune Municipal Separate School Board to transfer funds from their fund balance.
District Finance Director Lisa Penton said the federal government cut funding to the program by $258,000, but did not give the district full word of that cut until June. Assistant Superintendent Brent Harrell said last year funding for the program was approved quarterly, leading to the announcement coming late.
Some changes were made in spending and payroll under the Early Head Start program after the district received official word of the shortfall, causing Penton and her staff to make quick moves to cut spending, bringing that deficit down to $54,000. But the district can’t end the fiscal year with a negative balance, so Penton suggested the board make up the difference by using funds from the district’s fund balance. State laws mandate the district is to maintain about seven percent of their annual budget within the fund balance, amounting to about $1.9 million. Currently the district has about $4.2 million in the fund balance, Penton said.
Harrell said the Early Head Start shortfall was due to congress voting against providing fourth quarter funding to the Early Head Start Expansion programs nationwide. Previous grant funding allowed the district to set up the expansion program in Picayune, leading to construction of the new facility near Nicholson Elementary. While funding was determined on a quarterly basis last year, Harrell said this year funding has already been approved for the full school year, meaning a shortfall is not expected to occur at the end of the coming fiscal year.
Board member Ray Scott urged Penton and her staff to stay in touch with the Early Head Start Director and stay up to date about future funding cuts so changes can be made sooner. Scott made a motion to approve the transfer of funds, which was approved by the rest of the board.
Another shortfall, this time in tax collections, will also be made up with money from the fund reserve. An agenda item concerning whether to apply for a promissory note to make up for the tax shortfall was declined by the board after concern was expressed about it’s approval increasing the amount of debt the district has. Harrell said this year’s tax shortfall is $164,500.
Shortfalls from tax collections by law can be made up by borrowing the difference, but the board has to approve such a move, Harrell said. Scott expressed concern about adding another promissory note to the district’s debt, since they still have a year left on a previous promissory note from a previous shortfall. Board member Frank Feeley made a motion not to apply for the promissory note, which was approved by the other members.
Harrell said with board rejection of the promissory note the funds to fix the tax shortfall will also come from the district’s reserve fund.
In other business the district approved a motion to replace windows at the Nicholson Elementary cafeteria. Shaw said the $12,000 work will make the windows safer for students and are expected to be more energy efficient. Money to conduct that work will come from an existing bond, Penton said.
The next regular school board meeting will be Oct. 9, at 5:30 p.m.
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Picayune’s School board makes up for Early Head Start shortfall
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