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Commissioners approve recognition of about $1.65M in unanticipated school revenue to bolster fund balance
Summary
County staff told commissioners the school system received roughly $1.65 million in unexpected FY2024 revenues (interest earnings and CareFirst reimbursements); commissioners approved a budget amendment to recognize the funds with the increase going to FY2024 fund balance to support planned FY2025 needs.
County financial staff presented a memorandum recommending that the board recognize approximately $1,650,000 in additional FY2024 Calvert County Public Schools revenues—primarily higher-than-anticipated interest earnings and CareFirst health insurance reimbursements—and a concurrent $1,000,000 reduction in expenditures that together would increase the district’s FY2024 fund balance.
Scott Johnson, identified in the meeting memo as the chief financial officer for the schools, said the amendment aligns the final FY2024 budget to actual revenue and expenditure projections and noted that the school district plans to draw $5 million from the FY2024 fund balance for FY2025. Johnson told commissioners that the district originally budgeted a smaller CareFirst reimbursement and that the actual receipts exceeded estimates by roughly $1.9 million, while the budget amendment recognizes $1.65 million as additional revenue alongside the proposed expenditure reduction.
Commissioners asked whether the additional receipts are recurring and how the funds would be used. Staff and the CFO said the CareFirst payments and interest are not guaranteed annually and that the recommended action is to record the increase in fund balance rather than assume ongoing revenue for future budgets. Commissioners also sought and were given a commitment to provide line-item transfer details in writing after the meeting; staff said the district could provide grant-by-grant transfers and the final FY2024 numbers by Sept. 30.
A motion to record the unanticipated revenues into fund balance and approve the budget amendment was moved and seconded; the motion carried by voice vote. County attorneys and staff confirmed that the action is within the county’s budget oversight authority under Maryland law and that no separate appropriation increase was required for this recognition.
The board voted to approve the budget amendment; staff said the change should improve budget-to-actual alignment for FY2024 and that final audited figures will be available after closeout.
