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PCSSD finance update: district reports roughly $900,000 in meal account bad debt and free breakfast coming next year
Summary
District finance staff reported recognition of about $900,000 in student meal unpaid balances (three years rolled in), strong food service balances but operating fund will absorb the bad debt; trustees were told universal free breakfast will begin next year.
Pulaski County Special School District finance staff reported to trustees on fiscal period 11 (May) financials and a projection of food service bad debt at the June meeting.
Chief finance staff presented legal fund balances and revenue/expenditure percentages across funds; the packet showed a net legal balance of approximately $32.0 million and categorical fund balances in the packet. Food service had a reported cash balance of about $2.1 million, but trustees and finance staff discussed that the district would recognize roughly $900,000 in bad lunch debt for the current fiscal year — made up of approximately $300,000 previously carried on the books plus another $600,000 in more recent uncollectible balances. Finance staff said state reimbursement rules and food‑service accounting require operating fund support to cover the recognized bad debt.
Trustees asked whether the Community Eligibility Provision (CEP) and a new state free‑breakfast provision will reduce future bad debt; finance staff said broader eligibility for free meals and a state free‑breakfast program beginning next year should reduce meal account unpaid balances. Administration offered to provide a breakdown of breakfast vs. lunch debt for board review.
The finance presentation also flagged that the district has expended approximately 86% of budget and received about 97% of budgeted revenues to date for the fiscal period reported.
Board members asked for follow‑up reports quantifying how the new breakfast entitlements and CEP participation will affect future bad debt and operating impacts.
