The Atlantic Community School District needs to do a better job of reigning-in spending and taking in cash. That’s the word from Gary Sinclair, with PMA Financial Network, who handed out a half-inch thick booklet to the school board and discussed for more than 40-minutes, ways to continue to improve upon financial planning. The information he presented during Monday night’s board meeting, was compiled through the use of IASB (Iowa Association of School Board) reports.

Areas of concern included the district’s Unspent Balance, its Cash Position, Spending Authority, and Solvency ratio. He said the district has been “trending down,” and at the end of FY 2014 was -3.6, which means if all the bills had been paid, the district would not have had enough money. The district’s Unspent Balance has also been trending down.  He says eventually, unless that’s turned around, it will continue to accelerate.

Sinclair also pointed out the district has fewer students per full-time employee teachers, than four other, comparable districts, which results in higher salaries and benefits in the General Fund, and which “Has contributed to the financial challenges” the district is experiencing.

The district has been working with the Financial Planning Program (FPP) to better track and control its spending. The program is based on past spending, future spending, projected enrollment, income, and numerous other factors. The data show over the next two years, the district has to have a net reduction in salaries and one a one-year net reduction in benefits, to turn the budget around. If not, the district will show a negative balance in two-years.

Sinclair said there’s not much the district can do on the revenue side of the equation. PMA projects a reduction of eight teaching positions next year, but also adds fractional teacher hiring positions based on enrollment increases. Atlantic will start the TLC (Teacher Leadership and Compensation) system next year, which will bring in needed revenue, but part of activities the district is currently doing, will qualify for TLC spending, which will supplant the General Fund. Attrition of staff, by retirement, or by transfers to other districts, are also factored in to the financial picture.

He says the bottom line is the district needs to take in more cash next year in order to bring the solvency ratio back into a positive range.