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Treasurer proposes trimming internal workers' compensation charge; outlines legislative items affecting school funding
Summary
District treasurer reported a proposed reduction in the internal workers' compensation charge (from 0.9% to 0.1% of payroll) to draw down an available cash balance, described tax-advance procedural action, and summarized pending state legislation that he said is unlikely to materially affect the district.
The Orange City Schools treasurer reviewed several financial items at the board meeting and recommended lowering the districts internal workers' compensation charge.
Treasurer Mr. Polacco said the district currently charges 0.9% of payroll expenditures and deposits the funds into a workers' compensation fund. He explained the district plans to lower the charge to 0.1% because the fund has a healthy cash balance and interest revenue, and the reduction will allow reserves to be spent down gradually while maintaining a prudent reserve.
"We're lowering it to point 1% because we have a healthy cash balance between that and the interest revenue in that account," Mr. Polacco said, adding that reducing the charge will help ease pressure on the general fund and other salary-bearing funds.
Mr. Polacco also presented a formal tax-advance resolution (a routine annual authorization to accept county tax advances) and noted a small donation on the agenda for Moreland Hills principal fund. He summarized several bills moving through the state legislature, including House Bill 186 (property-tax growth cap tied to a 20-mill floor), House Bill 335 (limits on inside millage growth) and House Bill 309 (clarifying county budget commission authorities), and said most of the proposed changes would not materially affect this district.
Why it matters: The workers' compensation charge affects how payroll costs flow through district funds and can change near-term general fund pressure. Legislative changes to property-tax calculations could affect school revenue statewide; the treasurer said the district is not currently in the positions targeted by some proposals.
What happens next: The treasurer placed the financial items on the consent calendar, which the board approved by roll call during the meeting.
Provenance: Treasurer presentation and roll-call approvals were recorded in the meeting transcript.
