At Monday’s meeting of the Laurens County School District 56 Board of Trustees, Finance Director Dr. Gerald Robinson spoke about cash flow. Dr. Robinson explained that a principal part of the district’s revenue consists of local taxes. He said since these taxes are due once each year, the district is flush with cash early in the calendar year, but must carefully watch cash late in the year. Robinson said that in October 2013, after transferring enough money to meet payroll and pay the district’s bills there was just a little over $9,000 in the general fund. He noted the balance was so low that some payments he usually makes in October or November were held until December, to allow more revenue to collect. These included a check for some $455,000 to Laurens County School District 55 for equalization.
This is a procedure where Districts 55 and 56 share industrial revenue generated in both districts with each other. This began when Torrington located in the county decades ago and there was confusion over which district should receive revenues. Local officials then had a plan codified to share industrial revenue generated in both districts.