Welcome to Finance Friday! Each Friday, starting in March 2025, we will share some basics about our district finances. Up today: 𝗗𝗮𝘆𝘀 𝗖𝗮𝘀𝗵 𝗼𝗻 𝗛𝗮𝗻𝗱.
One key measure that reflects a district's financial health is its Days Cash on Hand. This metric provides insight into how well a district is prepared to meet its short-term obligations without additional cash inflows.
For schools, it is a best practice to keep 30 to 90 days of cash on hand. Princeton’s policy is to have 90 Days Cash on Hand.
In our district’s latest Five-Year Forecast, you will notice the steady decline of cash on hand over the next five years. This is a trend all school districts experience as expenses increase due to a variety of factors, including inflation, while revenues remain relatively stagnant.
The GREEN bar shows where the Cash on Hand was when the forecast was reported in November 2024. 𝐀𝐟𝐭𝐞𝐫 𝐭𝐡𝐞 𝐟𝐚𝐢𝐥𝐞𝐝 𝐥𝐞𝐯𝐲, 𝐜𝐮𝐭𝐬 𝐰𝐞𝐫𝐞 𝐦𝐚𝐝𝐞 𝐨𝐫 𝐩𝐫𝐨𝐩𝐨𝐬𝐞𝐝. The ORANGE bar shows the current forecast that was reported in February 2025.
School districts often address declining cash balances by reducing expenses in staffing, capital outlay, etc., or by increasing revenue through seeking the approval of an additional levy, or a combination of both.
If you have questions about PCSD finances, please contact our Treasurer, Chris Poetter, at cpoetter@vikingmail.org. She is happy to discuss numbers and facts with you!
Internal Revenue Service is reaching out to taxpayers this filing season to make certain that eligible families are claiming their tax credits when including dependents on their tax returns.
Child Tax Credit (CTC): The CTC is a credit that may reduce your tax by as much as $2,000 for each child who qualifies you for the credit. To qualify, the child must be a U.S. citizen under age 17; have a Social Security number; be claimed as a dependent on the taxpayer's tax return; and more. Use the IRS Interactive Tax Assistant tool to determine eligibility: Does my child/dependent qualify for the child tax credit or the credit for other dependents?. For more information please see: Child Tax Credit.
Other Dependent Credit (ODC): The ODC is a credit that may reduce your tax by as much as $500 for each eligible dependent. The person is claimed as a dependent on your return; the person can’t be used by you to claim the CTC or Additional CTC; the person was a U.S. citizen, U.S. national, or U.S. resident alien. Again, use the IRS Interactive Tax Assistant tool to determine eligibility: Does my child/dependent qualify for the child tax credit or the credit for other dependents?.
Earned Income Tax Credit (EITC): One refundable tax credit for moderate- and low-income families is the Earned Income Tax Credit. The IRS estimates there are millions of workers who qualify but don't claim the EITC - missing out on thousands of dollars every year. The EITC is as much as $4,213 when claiming one child, $6,960 when claiming two children, and $7,830 when claiming three or more children. Use the EITC Assistant to learn if you're eligible for the tax credit. For more detailed information see: Publication 596, Earned Income Credit and Who Qualifies for the Earned Income Tax Credit (EITC).
Child and Dependent Care Credit: Taxpayers who paid someone to care for their child, spouse or dependent so they can work, be a full-time student or look for work may be able to reduce their tax by claiming the Child and Dependent Care Credit. The total expenses that you may use to calculate the credit may not be more than $3,000 (for one qualifying individual) or $6,000 (for two or more qualifying individuals). Use the IRS Interactive Tax Assistant tool: Am I Eligible to Claim the Child and Dependent Care Credit? For more information please see: Publication 503, Child and Dependent Care Expenses or Topic no. 602, Child and Dependent Care Credit
American Opportunity Tax Credit (AOTC): The AOTC is a credit that may reduce your tax by as much as $2,500 for each eligible student for the first four years of higher education. The AOTC can be claimed for yourself, your spouse, or a dependent claimed on your return. See Publication 970, Tax Benefits for Education, or use the IRS Interactive Tax Assistant tool "Am I Eligible to Claim an Education Credit?" to help you determine if your education expenses qualify for a tax benefit.
Note: The actual credit amounts will be determined by a taxpayer’s Adjusted Gross Income.