School Administrative Unit #19 · 11 School Street · Goffstown, NH 03045 · Tel: 603-497-4818 · Fax: 603-497-8425

With the preparation of the 2012-2013 School Budget underway, the Goffstown School Board has closed out the 2010-11 budget year with an unreserved fund balance of $2,326,307. This will be returned to the taxpayers of Goffstown to reduce the tax rate.

What is an “unreserved fund balance”?  Simply put, it is the money we have not spent at the end of a budget year. It is made up of three components: Money that was appropriated by the voters and not spent, money that was collected as an unprojected revenue, and money encumbered two years ago that was not spent.

Why is this number so high? It’s important to remember that the budget for 2010-11 was first prepared a full year before it began to be expended – in the summer of 2009. At that time, as with any budget cycle, the District used the best information it had to project its operating expenses.   

However, items such as utilities, insurance and tuition all vary from the time we prepare a budget. We also constantly seek to save money. For example, this year savings included $100,000 from a bond we refinanced to more favorable rates, negotiated pricing for fuel and the development of in district Special Education programs reducing out of district tuition costs by over $300,000. 

Likewise for revenues, when the district begins the budget process 12 months prior to the start of a year, an estimated revenue forecast is developed which is again, based on the best information we have at the time. One of our largest revenue sources is tuition from Dunbarton and New Boston. Yet, when we project revenue, the budgets that determine the tuition rates have not be set, making it difficult to project actual tuition rates. The number of students New Boston and Dunbarton send to Goffstown also fluctuates. Changes in state and federal aid to school districts also contribute to our difficulty in determining a precise revenue. 

As for unexpended encumbrances, although the district’s practice is to close out all purchase orders at the end of the year, it cannot always do so. For example, in June 2010, the MVMS oil tank failed an inspection. While we were determining the extent of the problem, the district encumbered enough funds to cover the worst-case scenario. Thankfully, the tank only needed repair and the remainder of that money is now released back to the community.

The question is often asked - if we have that much left over, why don’t we spend it? The School Board prides itself on prudent and thoughtful planning for the district, its expenses and the resources available to meet those needs. Also, State law does not allow a school district to carry over funds from year to year.

The Goffstown School Board meets on the 1st and 3rd Mondays of each month at 7PM in the GHS media center. The public is welcome and encouraged to attend.