Does Capital Region BOCES use its reserve funds?
Yes, Capital Region BOCES plans to use $1 million
out of its reserve funds in 2012-2013, to lower costs to districts.
As of the fiscal year ending June 30, 2012, BOCES will have approximately $7.4 million in reserve funds, and plans to use $1 million of that in 2012-2013 to cover the increased costs of state mandated expenditures for retirement.
Reserve funds are much like savings accounts, money set aside to address unexpected expenses and to budget for anticipated future costs. According to the New York State Comptroller, “In uncertain economic times, reserve funds can provide officials with a welcome budgetary option that can help mitigate the need to cut services or to raise taxes.”
“BOCES around the state hold a variety of reserve funds, all for the same purpose: to protect school districts by managing increases and avoiding spikes in BOCES service and administrative fees from year to year,” said District Superintendent Charles Dedrick. “Through reserves, we can continue to control and budget BOCES expenses into the future, helping districts avoid spikes in the budgets presented to taxpayers.”
BOCES Reserves: (estimated as of June 2012)
Employee Benefit Accrued Liability Reserve (funds accrued leave time, such as vacation and sick benefits due to employees): $3,281,302
Retirement Contribution Reserve (helps fund pension costs to the NY State and Local Employees’ Retirement System, but not the Teachers’ Retirement System): $2,558,000 (The proposed budget uses $1 million of this reserve to offset retirement increases.)
Liability Reserve (funds property loss and liability claims): $536,880
Unemployment Insurance Reserve (used to reimburse the NYS Unemployment Insurance Fund for payments made to claimants): $461,359
CTE Equipment Reserve (funds the purchase of Career & Technical Education equipment): $508,403
BOCES plans to use $1 million of its reserves in the 2012-13 school year for costs related to increases in state mandated expenses for retirement.