DiNapoli seeks more flexibility with school reserve fund

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

The EBALR fund is used to pay teachers and staff for unused leave time, such as 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 this 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.

Louis Frontario, Oceanside schools' assistant superintendent for business, said he would be in favor of such legislation. "Anything that gives us flexibility is good because it allows us to control the growth of our budget," Frontario said, adding that reserve funds could be used to offset other budget costs. The Oceanside School District is already planning to use money from other reserve funds to help lower the tax levy this year.

Frontario also noted that Oceanside was not among the schools cited by DiNapoli for putting too much money into the fund.

DiNapoli did cite the Island Park School District for over-funding its EBALR account in an audit released last year, alleging that the district put $526,215 more than it needed into the fund. Schools Superintendent Dr. Rosmarie Bovino said the district set aside that money based on the findings of an actuarial report and on the advice of auditors and attorneys. The audit used data from the 2007-2008 school year. At the time, Bill Reynolds, a spokesman for DiNapoli's office, said the results of Island Park's audit were not all that different from audits performed at schools across the state. He further explained that the audits were not meant to catch school officials off-guard, but rather to point out weaknesses in budget allocations and suggest how funds might be better used.