I have never seen a CAFR. CAFR stands for Comprehensive Annual Financial Report. The School District posts them
here on their website. The latest CAFR is available
here. It includes the independent auditor's report from Maher Duessel, the accounting firm who the school board hires year after year since the 90's. See
A case of deflected argumentation? Their report includes this statement:
These financial statements are the responsibility of the School District’s management. Our responsibility is to express opinions on these financial statements based on our audit.
So what prompted me to find the CAFR? A reader sent me this email concerning graduation rates:
Did you happen to read the spring edition of Pittsburgh Quarterly? In it, they list the top 5 and bottom several high school graduation rates by regional school district. Interestingly, Mt. Lebanon was not in the top five (Penn Trafford was #1 @ 99.71%). I went to the link -- www.pittsburghtoday.org to look at all of the regional districts. Mt. Lebanon is at 96.01% which is below Peters, USC, Char Valley, Franklin Regional, Peters Township and Pine Richland -- to name a few. Interestingly, on the Lebo High School report card, the graduation rate is listed as 97%. Still well below the higher performing districts, but higher than listed on the PA Department of Education's website. I thought you would find this interesting.
I sent it on to a professional in the area for input. Here is the response:
I think that number is in the back of the CAFR each year.
But when taxes increase, demographics will shift due to falling home prices. That means people of a lower socioeconomic status will replace people who were of higher socioeconomic stats and therefore graduation rates would tend to drop in kind.
OK, so taxes are going up. I better take a look at a CAFR. Here is what stood out for me, at least what I was able to understand.
- On page 115 of the pdf, we had only 8 buildings in 1998 with 5600 students. Today we only have 5200 students and yet have all 10 buildings open.
- On page 117 of the pdf, talk about a change in socioeconomics!! The number of free and reduced lunches has SKYROCKETED (doubled) from 2009 to 2011. To be fair, 2011 was the first year where all 10 schools participated in the National School Lunch Program. In 2002, there were 133 students who participated in the free or reduced lunch program. In 2011, there were 431.
- The CAFR does not show graduation rates though.
Still amazed at what was contained in this report, I went to yet another expert concerning bonds. Here is the expert's analysis:
Going through the CAFR and on page 110, it shows that the Disrict total borrowing capacity is $25,000,000.
Assuming they have $80,000,000 available (from previous bond issue and cash on hand) then that would leave them with being able to float $25,000,000 in debt to get the $113,000,000. A little addition and subtraction will tell you that $80,000,0000 plus $25,000,000 is only $105,000,000. Hence the need to wait an additional year to float the next round of bonds. If they floated them this year they would need to go to referendum because they would exceed the 225% Act 50 non-electoral debt limit. If they would have floated them last year, the gap would have been even higher. But with the combination of making $12,000,000 a year in debt payments to reduce outstanding debt, and the increase in taxes to create more revenue, the District will eventually be able to borrow all the money it needs and max out its credit card without a vote by the people.
Wow! Doesn't that just give you warm fuzzies?
