The Panorama Schools are currently in “excellent financial health” according to a report obtained from the district. The district reviews its financial health based on four factors: unspent budget authority, solvency ratio, employee cost ratio and enrollment.

When a district does not use all of its spending authority during the year, it can be carried over to the next school year–this carryover is known as the “unspent budget authority.”  Panorama officials say it is recommended that districts have a minimum of $1,000 per student of unspent budget authority to be in “good” financial health.  Panorama has increased its reserves from $352 per student in 2009 to $2,049 per student in 2013-14.

In relation to the solvency ratio, which provides a picture of a district’s “cash in the bank,” officials say districts should have a minimum of 5% solvency but are recommended to have between 10-15% solvency.  Panorama’s solvency ratio has gone from as low as -10.1% in 2010 to 16.9% this year.

Staffing costs are the largest expense for districts, and to be considered in good financial health, officials say those costs should be less than 80% of the budget.  Panorama’s staff costs have gone from as high as 84% in 2009 to 75% this academic year.

Finally, in regard to enrollment, Panorama’s certified enrollment has declined by 61 students in the past five years.  Panorama officials say they have little control over this indicator but must be aware of the trend for future financial planning.

As a result of the recently analyzed financial health news, Panorama officials believe “there will not be any additional budget reductions within the district over the next two or three years.”

Anyone with questions about the district’s financial report can contact the Superintendent’s Office at 641-755-4144.