Trustees Allocate Surplus Monies to Reserve Funds

Huntington School Board members voted 7-0 to confirm allocations of surplus monies from the 2023/24 budget to the district’s reserve funds. Trustees took the action during a public meeting on Monday, October 21 in the Jack Abrams STEM Magnet School auditorium. Creation of each of the funds is authorized by state law. Some of the funds also required approval of district residents.

Consistent with advice from the Office of State Comptroller, the district has been drawing down most of its reserve funds.

The approved new allocations include:

• Building Improvement (Capital Reserve) Fund (2022): $3,037,960

• Workers Compensation Reserve Fund: $598,936

• Retirement Contribution Reserve Fund: $312,040

• Retirement Contribution Sub-Fund: $1,009,090

Trustees also approved drawing $440,576 from the district’s Employee Benefits and Accrued Liabilities Reserve Fund.

Maintaining a well-funded capital reserve allows the district to avoid borrowing and incurring interest costs to upgrade its facilities. These monies can only be used for capital projects, including new school roofs, windows, doors, boilers, facility improvements, etc. Completed projects are eligible for state aid. District residents must approve any expenditure of funds.

The Employee Benefits Accrued Liability Reserve Fund covers the cost of unused accumulated leave time that is contractually provided to certain groups of employees when they separate from the district and are entitled to such payment.

The Retirement Contribution Reserve Fund is used to pay expenses related to the district’s obligation to the New York State Employees Retirement System.

The Retirement Contribution Reserve Sub-Fund was created on May 13, 2019 and is used to pay expenses related to the district’s mandated contributions to the Teachers Retirement System.

The Workers’ Compensation Reserve Fund was created on June 19, 2006. It is used to pay actual claims related to employee medical costs and self-insurance administrative expenses. It cannot be used to pay for premiums.

The Unemployment Insurance Payment Reserve Fund was created on June 7, 2010. It helps cover unemployment insurance claims submitted by employees who have been separated from service to the district.

The district is using $1,400,000 from its fund balance to help hold down property taxes during the 2024/25 fiscal year.

Huntington’s unassigned fund balance monies are unrestricted and may be used for any valid purpose.