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Fund
Equity is one indicator of the financial health and stability of a
school district. A common misconception is that fund equity is
surplus cash and therefore should correspond to the district’s bank
balance. Very simply stated, Fund Equity represents the excess of a
district’s assets over its liabilities (what the district owns minus
what it owes). Cash is an asset, but is only one of many district
assets – some others would include: accounts receivable, prepaid
expenses, supplies, equipment and buildings.
Generally, the more equity a district has, the less short-term
borrowing a district has to do for cash flow purposes. The less
borrowing, the less money needed for interest payments. It is the
goal of the Board of Education to maintain an equity balance of not
less than 20% of the General Fund Budget. The average equity of all
Wisconsin School Districts is approximately 18% of the General Fund
Budget. Currently, the Medford Area Public School District’s equity
is 25.63% of the General Fund Budget.
|
00-01 Actual General Fund
Equity |
% of General Fund Budget
|
01-02 Actual General Fund Equity |
% of General Fund Budget |
02-03 Actual General Fund Equity |
% of General Fund Budget |
03-04 Actual General Fund Equity |
% of General Fund Budget |
04-05
Actual General Fund Equity |
% of General Fund Budget |
05-06 Actual General Fund
Equity |
% of General Fund Budget |
06-07
Projected General Fund Equity |
% of General Fund Budget |
07-08
Projected General Fund Equity |
% of General Fund Budget |
|
1,920,175 |
11.0% |
2,772,195 |
15.39% |
3,622,697 |
19.77% |
4,310,261 |
23.53% |
4,971,420 |
27.16% |
5,002,014 |
25.98% |
5,006,364 |
25.17% |
5,006,364 |
25.17% |
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