Money that doesn’t get used in a fiscal year – because, for example, expenses are lower than budgeted because of increased efficiencies or a focused savings effort – is put into the district’s “fund balance.”

In 2014, the Board of School Commissioners approved a policy that guides how the fund balance can be used in future years, and that requires the district to maintain the fund balance at 3 to 5 percent of the general fund. (You can learn more about the policy on the “BoardDocs” website.)

The district drew on the fund balance last year as a solution to close the budget gap, leaving the fund balance at the low end of the requirement.

fund balance over the years

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