A year after warning the Lincoln Parish School Board (LPSB) that it wasn’t funding employee retirement and health care programs sufficiently, Allen, Green & Williamson’s Amy Tynes was back again this year with similar warnings.
Said Tynes, “The total liabilities were $208 million. And you’ll notice if you compare this to last year, its around an $89 million increase. The past several years, we’ve had to record a liability on the books for that health care part of that promise. This year, the Governmental Accounting Standards Board came back and said we want to see what the dollar amount for the pension part that you’re promising your individuals, and that hit full force this year.”
She added, “For 2015, $54.8 million, that is how much on the books for your health care portion.”
Tynes said that the problem wasn’t isolated to Lincoln Parish, and that all the school districts in the state were not funding the programs nearly enough.
As far as daily operations, the Lincoln District audit had no findings, and showed the system to be in good financial shape.
In other reports, Business Manager Georg Murphy reported that the January Sales Tax collections are still greater than last year’s.
However, we noticed the increases are beginning to slow down, likely a result of the slowdown in the oil & gas activity in the area.
Murphy also said that the year was “horrible” for the health care insurance fund, but that recent increases in the deductible and copay rates hopefully would stem the red ink.