Butler Area School Board members received some good financial news Monday in advance of an audit report presentation planned for Jan. 27.

For the second consecutive school year, the district ended the year with a positive fund balance, Superintendent Brian White said.

The 2018-19 school year ended with the district having a fund balance of $7.79 million, which is $532,570 more than the fund balance it started the school year with.

The district ended the 2017-18 year with a fund balance that was $660,431 in the black.

“We've now ended two years with a positive fund balance,” White said.

The financial information he presented to the board included a summary of the 2016-17 school year showing the district ended that year with a fund balance that was $3.4 million in the red.

District auditors will present the 2018-19 audit at the next board meeting, White said.

Board member Bill Halle said the district still has no money for capital projects and should invest more in education.

Even through fixed costs such as salaries and debt service make up 80 percent of the budget, the district added full-day kindergarten and the Science, Technology, Engineering, Arts and Math (STEAM) program and borrowed money for building improvements, said Nicholas Morelli, acting business manager.

Despite the improved financial outlook, the district still faces economic pressures including a sharp decline in the assessed value of property in the district, White said.

“We're seeing a loss because of assessment appeals,” he said.

The assessed property value has declined by $3.8 million, which will result in a loss of $350,000 in real estate tax revenue, Morelli said.

White said the district can overcome the loss and it doesn't mean program cuts are the only solution.

Revenues and expenses will be reviewed beginning in the spring, he said.

Other business

The board approved the first reading of an anti-bullying/cyber bullying policy.

White said the policy was part of the student discipline policy, but it is being made a separate policy based on advice from the district's solicitor.

The board also thanked XTO Energy for donating 20 office furniture sets and 60 to 70 chairs to the district.