Elida being financially prudent
The Elida school board completed a progressive step in sound financial planning on July 16 by adopting a resolution to maintain a general fund cash balance equivalent to at least 60 days of operating expenses, and they did it unanimously — congratulations.
This prudent and fiscally sound decision is consistent with the Department of Education minimum recommendations, it is equivalent to government municipalities’ “rainy day” funds, or even personal financial advisers recommending at least six months of net income set aside for emergencies.
With this courageous decision and a full and complete understanding of the extensive cost reductions and sacrifices during the last 10 years demonstrating extreme fiscal management, if we understand there is nothing left to cut, they understand the profound resolution to achieve 60 days of operating expenses, how could they not unanimously support the recommendation to present to the voters an opportunity to maintain the integrity of the education we owe to our students?
In business, you reduce expenses and/or raise income or inevitably face bankruptcy. By already being lean beyond appreciable levels the only viable option is to increase revenue. If there is another option it’s well past due to hear its recommendation, we can no longer continue to gamble on our children’s education and future. The unanimous resolution was progressive, now let us be bold and unanimously promote the financial stability for the future of Elida.
— Michael Kleman, Lima