Has the District used its reserves to address funding needs, and what is the current condition of those reserves?
- Yes. During the Great Recession, the District spent heavily out of the reserve to soften the blow of the massive cuts that schools received. During that time, the reserve dropped from over $16 million per year to the previous year’s level of $10.7 million.
- The Board of Education revised policy to maintain a cash reserve of at least 10% of our total budget (about $95 million) to account for unforeseen budget shocks or catastrophes.
- This allowed us to spend below the previous policy limit of $10 million OR 10%, whichever is greater.
- The district’s operational budget (what we use to run schools) is about $65 million per year and our total budget (including all funds) is about $95 million per year.
- We allocated about $2 million from cash reserves to help cover expenses without reducing staff for SY20-21.
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