Schools have excess monies?

After his review of all schools districts and BOCES in New York, state Comptroller Thomas DiNapoli cited several districts for having excess funds in its Employee Benefit Accrued Liability funds.

Although there is no legal limit as to how much money districts can have in this account, DiNapoli said many districts had more money than would be reasonably needed in the coming years.

Long Beach School District has $7.2 million in this reserve fund as of June 30, 2009, $2.5 million more than the previous year, according to Michael DeVito, the district’s chief operating officer.

Based on liability, that the district should have $12 to $13 million in this fund, DeVito noted. Superintendent Dr. Robert Greenberg said he is in favor of DiNapoli’s plan. “Of all his suggestions, this is certainly most helpful,” he said, adding that the teacher retirement system is looking at a projected increase for next year of $650,000.

“And it’s projected to continue to go up,” Greenberg continued. “To defray the hit on the taxpayer, to start a reserve fund I could start to draw down over time on a reserve fund and not raise the budget to accommodate it.”

The EBALR fund is used to pay teachers and staff for unused leave time, including sick and vacation days, when they leave the district. Once money goes in to the fund, it can only come out for that purpose.

DiNapoli wants districts to use the excess money to benefit taxpayers. However, legislation is required for districts to be able to transfer money out of an EBALR account to its operating budget. He is proposing that the state Legislature adopt this change.