The Okmulgee School Board held a special meeting Tuesday evening where Superintendent Clay Vinyard provided updates on the district’s financial situation and proposed resolutions to address it. During the meeting, the board discussed a significant issue involving non-payable warrants and the management of surplus funds to meet payroll and other obligations.

Superintendent Vinyard explained that District Treasurer Jay Jenkins had assured him that there were enough surplus funds available, with approximately $1.6 million in surplus at the time. Some legal concerns were raised, prompting Vinyard to contact the Oklahoma State School Boards Association (OSSBA). Representatives confirmed the legality of using surplus funds to cover warrants was unclear, leading to the drafting of a formal resolution to ensure compliance.

“We were advised by our attorney to take this step to make it right,” Vinyard stated, clarifying the necessity of the resolution. The board moved forward to approve the resolution, authorizing the district to invest surplus funds from the bond account into the general fund at a 0% interest rate to cover the warrants.

The board also considered the possibility of borrowing funds from a local bank as a backup plan in case surplus funds fall short. Vinyard shared that he had already discussed the option with bank management requesting funds with an interest rate up to 5 percent.

While the bank’s assistance may not be needed, Vinyard explained it would only be used if necessary.

Board members expressed concern about ensuring payroll obligations could be met in the coming months. Vinyard reassured them, saying, “We will be able to make payroll Friday, October, November, and December,” but noted that if the district runs into unexpected challenges or delay in state and county funding, the backup agreement with the bank would be used.

A pressing question from the board members, who asked about the longterm plan to avoid similar financial strains. Vinyard responded, “We have two ways to fix this: increase revenue or decrease spending. Since I don’t foresee new revenue, we need to right-size our workforce to meet the number of students.”

Vinyard acknowledged that the district’s declining enrollment, would impact future funding. He emphasized the need for strategic cuts, saying, “We’re going to have to make sure that our workforce matches our student numbers, and that might mean reducing administrators, teachers, and support staff.”

However, the strategy in place and the work of administrators throughout the school year is giving optimism to Vinyard that the numbers will start to increase.

“We need about $1.6 million carryover every year to not be in this problem every year. And so I think we really have to look at every single thing we’re spending on, not only salaries and benefits, but also what are we spending on everything else in the district. So that’s what I’m really working on right now, is trying to figure out how we’re going to right size everything so that we’re budgeted to have a carryover that’s going to be helpful…I think it’s going to take three years to get to the carryover we need.”

The board adjourned with a renewed focus on managing resources more efficiently while prioritizing student needs.