Can the Board use its state mandated reserves to solve the budget crisis?
Perhaps. The state requires the District to maintain a reserve equal to three percent of its General Fund. In order to use this reserve, the legislature would have to grant a waiver to allow it to be expended. If a waiver is granted, we anticipate that the state might allow the District to use one half of the three percent reserve. Significant cuts will still be required even if the District can use these reserves. It is also important to note that the reserve would have to be repaid at some future date, affecting the District’s ability to restore services and programs when the economy does recover.
Related Questions
- I heard that the State of Ohio is going to start releasing lots of inmates because of a budget crisis. Will the new bills that are being proposed in the Ohio legislature affect old law inmates?
- Can the Board use its state mandated reserves to solve the budget crisis?
- How is the State Budget Crisis Affecting Da Vinci Schools?
