Serving the High Plains
Serving the High Plains
SAN JON — The San Jon Municipal Schools board last week approved its fiscal-year 2023 budget that projects $3.2 million in revenue and a healthy cash balance of $382,000.
Bryan Runyan, owner of K12 Accounting of Albuquerque hired earlier this year to be the district’s business manager, went over the budget with board members during their May 21 meeting. The district is required to submit its budget to the state by June 4.
Runyan observed San Jon’s cash balance had steadily increased since 2018. He said many school districts depleted their cash balances to cover basic operations during the COVID-19 pandemic.
Superintendent Janet Gladu said her goal was to maintain a cash balance of about 15% of the district’s revenue. She said anything higher than that, the state government was liable to sweep back some of that money.
Runyan agreed with that approach, saying an ample cash balance gives the district a cushion to absorb unexpected expenses.
He also said some federal coronavirus-related relief programs are scheduled to end, and districts likely will be required to use cash to cover those costs if they seek to continue those services.
“Overall, the district is in a healthy spot financially,” he said, adding San Jon was “not rich, not poor.”
“I feel like we’re where we need to be,” Runyan added.
Runyan noted the budget saw significant increases in instruction expenditures due to state-mandated salary increases for teachers and staff members.
Board President Frank Gibson voiced uneasiness about those increases if the state begins to see a budget crunch.
“They’re going to run out of money, and everyone is going to get screwed by this,” he said. “It’s scary.”
In other business:
• The board tabled resolutions to designate a new banking institution and signatories at the request of board member Cynthia Lee until she received more information about banking options.
The board during its April meeting vocally authorized Gladu to shop for a new bank after administrative assistant Stormi Sena and Runyan received what they described as rude or indifferent treatment from Citizens Bank in Tucumcari.
Lee said she’d heard more input from residents about the banking situation than any in a long time.
• The board took no action on authorizing per diem payments for board members.
Due to changes in state law regarding per diems, board members would be paid $45 for each virtual meeting or any in-person meeting of less than four hours. A meeting longer than four hours would earn a $95 payment.
Runyan noted an option to turn over those payments to the district, including for a scholarship fund. But board members were wary of tax liability if payments totaled more than $600 a year.
Runyan said the district could risk a finding on a future audit for non-compliance, but he offered to research to see whether the board could vote simply to not be paid.
Gibson said: “I’m thinking we sit on it and have our legislators clarify or change it.”
• The board approved a new contract for Gladu. The action followed a closed executive session of nearly 1 hour, 20 minutes. The board voted in December to extend her contract to June 2024.
She will be paid $113,817.28 during the next school year, a raise of about $2,500. She has been the district’s superintendent since 2018.
• The board approved a resolution to submit an application to the New Mexico Finance Authority to sell $400,000 in bonds that were approved by voters in 2019.