The Color of Money

by Robert "Bob" Lewandowski

One of the most difficult concepts to explain to the public school constituency is the color of money. No, not the 1986 movie with Tom Cruise and Paul Newman, but the limitations in which some revenues in public schools can be spent. Because the majority of public school revenue is tax generated, federal, state and local leaders have indicated how it is to be used. In proving fiscal responsibility and accountability, all revenues received by the school district are specifically directed toward certain types of expenditures. In other words, a dollar isn't a dollar that can be spent at the discretion of the administration and board. Each dollar is tagged or "colored" if you will, to be spent as directed by local, state and federal mandates.

An example that comes to mind is the Quality Schools Project. It is a project here at St. Ignatius that is nearing completion in order to address the envelope of the middle school and high school. As you can see by the exterior upgrade on the roof, insulation, windows, doors and siding, this project was expensive. Despite the blog post, website post, Facebook posts and news articles that explain the work done as part of a grant our district was awarded from the Department of Commerce,  some constituents still voice concerns as to why money was spent on this upgrade especially when there are other needs in our school system. Even though these are legitimate concerns, this is where the "color" of the money comes into play. Because the grant of $549,000 is specifically designated for the "High School and Middle School Envelope Repair" it can't be spent in other areas.

The color of the "School Envelope Repair" money is just the first layer of this onion. Within the Quality Schools Grant, it specifies eligible costs or additional money colors:

• Engineering/Architectural Design - $23,857
• Construction Engineering Services - $40,857
• Construction - $261,854
• Materials - $130,927
• Contingency - $91,382

Every expenditure has to be accounted for categorically. In addition, all expenditures have to be specifically related to the project connected to the "High School and Middle School Envelope Repair." I have had employees ask if work can be done to other structures on campus with this money. Telling them no, is not an easy answer. Once again, the discretion of how the money is spent is determined by outlined use of funds by the Department of Commerce.

This is just one example of the "color of money." There are eleven categorical revenues listed on the district audit. Within those eleven general categories there are numerous sub categorical revenues all directed toward specific expenditures. It is the administration's job to make sure these funds are being spent appropriately.

The bottom line in this post is tax dollars have strings attached that restrict and direct their use. I hope that this provides additional insight to some of the processes and decision-making that take place in our public schools.