The Sun Gets It Right This Week

[idlewind]

So the bottom line is: are we in the black or the red?

 

[Interested Girl]

Still to be seen. If revenues plummet as McCall predicted and they do not reduce expenditures - then it will be in the red for the current year.

 

[mdd88jd]

"Mark - if your statement is true the laymans explanation would be this.

We overestimated our reveues due to shortfalls from state funding and hold backs and we underestimated our expenses due to changes in salaries, etc. We had an operating deficit of 5 million dollars. We we able to avoid borrowing money to fund our deficit due to foresight of our administration to maintain a fund balance sufficent to cover our deficit.

A continuation of this will slowly errode our fund balance to the point that we will be forced to either reduce our expenditures or increase our revenues sufficiently to continue to remain financially viable."

Thanks Bob, you said in much clearer fashion what I was trying to say. The only point of disagreement is that salary increases are always taken from the fund balance. The fund balance that is currently projected includes a small increase for staff, a step increase. By the way, please call for legal advice, business is slow.....

M

 

[Bob Hudson]

Mark:

I assure you that you will be the one that I call. ;-)

I really appreciate your insight and obvious depth of committment.

Have a great day.