What are the maximum fund balance reserves that a school district may have?
There are no laws regulating the fund balance reserves for school districts except for the Special Education Fund. In the Special Education Fund the state aid formula limits yearend fund balances to twenty percent of its special education expenditures for the prior fiscal year or fifty thousand dollars, whichever is greater. If a school participated in the special education extraordinary expenses program, then the ending special education fund balance should not exceed five percent of its special education expenditures for the prior fiscal year. SDCL 13-37-44. The General Fund also has a 20% limitation of its fund balance reserves as stipulated in the state aid formula.
Related Questions
- I understand that we started the 2008-09 school year with a fund balance in excess of $18.3 million. Why can’t that money be used to increase salaries, add more teachers, or cover revenue deficits?
- Is it legal for a school district to levy less than the maximum levies in the General Fund?
- Does the Fulfillment Fund work with the Los Angeles Unified School District?
