Annual per pupil budget allocations for non-personnel expenses and for block grant programs will not be increased for the next budget year. These per pupil allocations are separate from those provided by the state funding formula Staffing guidelines will not be modified upwards Other budget control measures which do not adversely affect delivery of instructional programs will be taken The Fund Balance policy shall also apply to the administration of the Minnetonka Food Service Operating Fund. Update of the budget may identify resources available for program enhancement or will determine if cost containment efforts are required. Receipt of revenue from state and local sources is irregular when compared to the expenditure of funds, thereby creating periodic cash flow deficits during the year. Higher than usual tax delinquencies may occur during periods of economic downturn, thus reducing District property tax receipts.
Unexpected events can alter the budget by unexpectedly reducing revenues or adding costs.
Districts without sufficient funds on hand must borrow money ona short term basis to cover cash flow deficits. Maintenance of an adequate, stable fund balance decreases interest expense on bonded debt through an approved bond rating. When they are not needed to meet operating expenses, funds on hand can be invested to generate additional income for the District.