Excess funds returned annually to districts
Sept. 30, 2012 — An article in the Sept. 30 edition of The Journal News discusses BOCES surplus across the state. Below are facts about how BOCES surplus works, including how it protects school districts:
BOCES
surplus are the funds that were not spent during
the year. This funding is annually returned to component
school districts.
BOCES
is the only governmental agency required to refund its unused funds
at the end of each fiscal year.
BOCES
do not 'cushion' budgets, but plan budgets based on past experience
and anticipated costs.
BOCES
annual costs are set to handle unexpected liabilities, such as
health insurance increases and fluctuations in student enrollment. This
ensures that BOCES are not requesting critical, operational funds
from school districts in the middle of the school year — since
schools districts are responsible to pay for any BOCES budgetary
deficiencies. BOCES asking for additional funding mid-school year
could wreak havoc on school district budgets.
BOCES
surplus is an accounting process
that protects school districts and taxpayers because excess funds
are always returned. BOCES budgets are created in
accordance with New York State Education Department guidelines and
general accounting principles.
The
amount of money refunded is tiny compared to BOCES’ budget or to the
aggregate school district budgets. For example, at Capital Region
BOCES, the surplus in 2010-2011 represented about
1% of the total $121 million annual budget.
BOCES
budgets are prepared months prior to school districts making commitments
about service subscriptions
— as a result, they are at best
estimates and predictions.
Bottomline,
BOCES are complex yet highly effective entities that help
schools and municipalities share resources and contain costs. Due to
their cooperative nature, BOCES have been cited as a model for cost
savings in New York state.
Questions? Contact District Superintendent Charles Dedrick at 518-862-4901.
