Somerset School District reports midyear spending in line as revenues lag until property-tax receipts
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Summary
At the March 2 board meeting, Business Department presenter Rod told trustees the district had spent about 35% of its budget through Dec. 31—similar to last year—but had received only 18.4% of annual revenue because property-tax receipts post later; trustees asked questions and were told a fuller picture will come after the third-quarter report.
At its March 2 meeting the Somerset School District board heard a midyear budget update showing overall expenditures close to last year’s pace while revenues lagged until property-tax receipts posted.
"We spent 35.3% of our budget as of December 31," Rod, the business-department presenter, told the board, and contrasted that with last year’s 35.8% for the same period. He explained payroll timing drives early-year percentages: about 34% of support-staff payroll is paid during the first half of the fiscal year while year‑round positions show about 50% expended.
The presentation separated spending by function and object. Rod noted insurance and judgments were at roughly 92% of budget because premiums are paid at the start of the fiscal year, and that a small overrun in "other support services" — roughly $3,600 tied to employee HSAs — was not cause for concern. Purchase services were low (3.1%) because many contract expenses occur in the second half of the year.
On revenues, Rod said the district had received only 18.4% of its revenue by Dec. 31, largely because property-tax receipts had not yet posted. "We haven't received any property tax income" for that snapshot date, he said, noting most local property-tax money typically arrives for the district in January and February and another portion in August. He told the board that, year to date, the district had taken in about $350,000 less than the same point last year and that the first six months showed an approximately $3,000,000 gap between cumulative expenses and cumulative revenues — the timing gap that fund balances are designed to cover.
Board members asked about reporting cutoffs and missing invoices. One trustee asked, "This is all through December?" Rod confirmed the numbers reflect expenses through Dec. 31 and explained that some invoices paid in January will appear in next-quarter reports. Trustees also queried higher substitute wages (about $20,000 more than last year), potential legal-fee increases and what to watch to end the year under budget; Rod said the third-quarter update in April or early May should provide clearer projections and flagged a few items likely to increase.
The presentation concluded with trustees praising the clarity of the visuals and the approach. Rod said staff will return with a Q3 update to show how midyear trends develop and whether adjustments are needed.