JAY – Of the $1.3 million the town’s auditor indicated was in the Jay School Department’s general fund, $506,153 has already been used to reduce taxes this year, school Superintendent Robert Wall said.

Money unspent in a budget year goes into the general fund accounts unless designated in a carry-over or reserve account.

Once the school year ended, only voters can authorize spending money from the general fund, Wall said.

The school department plans to use another $505,453 of its general fund to reduce taxes in fiscal 2010, Wall said, which will leave about $300,000 of that money remaining.

The rest could be used in an emergency, but voters would still need to approve any money spent from that account.

When a school budget is built, anticipated revenues are included to offset expenses, he said. When the warrant goes before voters, revenues are included in the package and are listed out.

Schools are putting together the fiscal 2010 budget now, he said.

“We always apply the general fund money to lowering taxes,” Wall said.

Town Auditor Ron Smith reviewed the $7.4 million in the town’s undesignated fund as of June 30. Auditors recommend municipalities have at least three months of funds to cover operations in case of an emergency.