Finance director: audit nearly complete; state aid uncertainty could force short-term borrowing; enhancement millage noted

Lowell Area Schools finance staff told the board Sept. 8 that final audit fieldwork is complete and auditors will present draft financial statements at the Nov. 10 meeting, while also flagging uncertainty about upcoming state aid.

“...we will be able to continue to make our payments, continue to pay payroll even if we do not get our October state aid payments,” a district finance staff member said during the budget update. The staff member added that, if a prolonged state shutdown occurred, the district would need to discuss potentially borrowing money to continue payroll and operations, but said the district’s current fund balance is healthy enough to absorb some delay.

The superintendent also briefed the board on a countywide enhancement millage measure to restore 0.9 mills; the superintendent said the millage would account for about $357 per pupil and represents roughly $1.2 million of the district’s budget. District leaders said the funds have been used locally to reduce class sizes (particularly in early childhood and kindergarten), support the Chromebook and technology program and sustain literacy initiatives tied to third-grade reading requirements.

No formal votes were taken on borrowing or millage at the meeting; the presentation was informational and staff said more details will follow as state budget negotiations progress.

The board was told staff will continue to monitor state-level budget negotiations and will report back; auditors are scheduled to present their findings at the November meeting.