School District Finds “Unexpected” $30 Million Budget Deficit

When government and private sector accounting collide, bad news usually follows. In Rochester, NY, the physics of math exposed some bad news for the school district. Newly exposed budget deficit has many leaders scrambling to fill the financial gap.

Originally rumored to be a budget shortfall of $50 million, Rochester City School District Superintendent Terry Dade says now with an internal auditor and his own financial team, he is confident the district is facing a shortfall of $30 million; a number that parents Spectrum News spoke to don’t understand.

“It’s a shame we built all of these schools all over the place, and now we find out there’s missing money,” grandparent Veronica White said.

Zahyia Rolle, a parent of three district students, agreed.

“Where did it go? Because I know there are leaky roofs in a lot of these schools. So where did it go?” Rolle said.

But Dade attributes that shortfall to overspending on employee benefits, teacher substitutes, charter tuition, retirement benefits and contract transportation.

The state comptroller’s office will join the district to address the financial crisis as the investigation continues.

 

Source: Spectrum Local News

Published by Hoosier Econ

Located out of Central Indiana. Blogger of economics, politics and societal trends.

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