Frequently Asked Questions
Q: There are construction projects going on at district schools. Can we stop those projects and use the money to help us out of this crisis?
A: No. Most construction projects are funded through bond issues, not the general fund that is being affected by state revenue shortfalls. State law says bond funds may be used to acquire and improve school sites; construct, repair, remodel or equip school buildings; or acquire school furniture, fixtures or equipment. The law does not allow districts to use bond funds for salaries, programs or other purposes.
Q: What about MAPS for Kids Funds? Can those funds help out now?
A: No. Although sales taxes for MAPS for Kids are no longer being collected, Putnam City still has a few million dollars of MAPS for Kids funds remaining. However, the requirements for MAPS for Kids funds are the same as for bond funds. In other words, those funds can be used only for construction and improvement projects, equipment, technology, buses and so on. These funds cannot be spent on salaries or programs.
Q: Can we shift funds out of our child nutrition fund and put them to other purposes?
A: No. Federal guidelines must be followed for the federal lunch program, and those guidelines allow child nutrition funds to be used only for child nutrition expenses.
Q: Can school activity funds be used to help the district?
A: No. Activity funds are raised at each school through school fund-raisers, concession sales, tickets sales, etc. The funds belong to each school and by law are spent at each school for the purposes for which they were raised. For example, if funds were raised by students to purchase supplies for their club or activity, those funds can’t be shifted and used to purchase supplies for different clubs, activities or purposes, nor can they be shifted and used for general fund purposes like salaries.
Q: Can federal stimulus funds help the district?
A: To a degree. Stimulus funds received by the governor were already used to supplement school district budgets this year. In other words, the revenue shortfall is taking place even with those funds already in use. In addition to the stimulus funds under the governor’s control, school districts received other stimulus funds dedicated for Title I (schools with high numbers of students from low-income families) and IDEA (Special Education) use. These funds allow the district to do many valuable things – additional teacher training, a truancy program and much more – but cannot be used to pay salaries of classroom teachers. The biggest limitation on the usefulness of stimulus funding is that it ends, forever, at the end of next fiscal year – June 30, 2011.
Q: What is the role of lottery funds in all of this?
A: Lottery funds are already included in the funds school districts receive from the state. There are no extra lottery funds sitting in a pot waiting to be used. What’s more, lottery funds are an area of shortfall, too. For several years projections for lottery revenue have been higher than actual money received.