Sheridan County SD #3 reviews March finances and options to preserve carryover funds

The board received a detailed March financial report and spent substantial time weighing how to protect locally held carryover — sometimes called pre‑1997 funds — from being counted under a recent state funding recalibration.

Business officer Rick Ro reported general fund year‑to‑date expenditures of $2,263,849.97 and provided program‑level breakouts for instruction, administration, maintenance, transportation and the lunch fund. March revenues totaled $319,321.63. Ro also reviewed other funds (lunch fund, depreciation reserve, capital construction) and noted remaining balances.

Staff advised the board that a recalibration change would cause the state to include a previously exempt local carryover balance in the statewide funding model; unless the district acts before June 30 the state could reallocate those dollars. The board discussed three options staff recommended to keep the funds under local control: (1) transfer to capital construction with a named project, (2) move the amount into depreciation reserve, or (3) allocate it to the food service program to shore up its operations. Trustees expressed concern about timing, accounting rules and whether funds placed in some accounts could be drawn back if an emergency arose. Several trustees preferred moving money into food service or staging transfers over several years to avoid a sudden spike that could be recaptured.

Trustees asked for written alternatives and a timeline so the board can act at or before its June meeting. No final transfer decision was made during this session.