Cherry Hill board approves returning unspent capital-project funds and authorizes up to $5M transfer to capital reserve amid public concern

The Cherry Hill Board of Education on June 23 approved moving unspent balances from completed capital projects back into the district’s capital reserve and authorized a not‑to‑exceed transfer of up to $5 million of current‑year surplus into that reserve.

Board secretary Mr. Schimps explained that agenda item 13.6 covers non‑bond funds from completed projects — including security‑vestibule work and a backflow‑preventer project that came in under budget — and that the routine end‑of‑fiscal‑year process is to close the projects and return remaining money to the capital reserve account. "These are the remaining balances on those projects that have now been completed… we're simply moving those back to capital reserve," he said.

Community speakers pressed the board to reconsider. Dr. Potowitz urged the board to vote no, arguing that the district has substantial bond‑interest income and that general‑fund dollars could be used directly in classrooms: "Please vote no on it… these $5 million in general funds can be directly put to our students' education. Directly!" Resident Rick Short and online speaker Laura Einhorn also sought clarity on several line items and asked what the district’s starting capital‑reserve balance will be on July 1, 2026.

Board members asked administrators how the $5 million not‑to‑exceed figure was estimated. Mr. Schimps said the figure is based on currently unspent capital‑project funds (about $2.448 million) plus an estimate of the surplus expected to lapse into the district’s undesignated fund balance; final surplus amounts will not be known until the audit is completed, which is why the board commonly approves an up‑to amount in June. He added that the administration has not made a final decision on how interest earned on bond proceeds will be used.

After discussion, the motion carrying agenda items 13.2–13.9 (which include 13.6 and 13.9) passed on recorded votes. The board carried the motion and the transfers will proceed as approved. The board’s explanation and the public’s questions highlight continuing community interest in how bond proceeds, interest, and general‑fund surpluses are allocated.

Next steps: the district will finalize audit figures this summer, after which the exact amount moved into capital reserve will be confirmed and posted in district financial documents.