![]() ![]() TEA suggests the district maintain an “adequate” amount in the fund balance-recommending that school districts hold two to three months of expenses in reserve. This forces a longitudinal view of the fund balance. ![]() How long would your current fund balance carry your district if all revenue were to dry up and expenses were to remain the same? Only the unassigned funds can be tapped at the discretion of the board. There are five categories of fund balances: There may be good reasons for the trend line, and as a board member, it’s your right to know. Knowing the trend line for your fund balance in the past 5 years can help direct a line of questions about the district’s financial health. It’s often considered when school bond ratings are set, and it’s an important protection against unplanned costs. The fund balance fluctuates considerably throughout the year, but it’s an indicator of the financial health of the district. A fund balance is the amount of assets in excess of liabilities.įund balance assets could include, among other things: People tend to think of a fund balance like a savings account, but the reality is more complicated. What is the current fund balance, and how does it compare over the last 5 years? When the board is expected to vote on the budget and set the tax rateĢ.When a complete draft budget can be reviewed.Enrollment projections and demographic reports.Staffing projections and salary schedules.When revenue estimates (property tax-appraised values) are available. ![]() Other discussions your board will have throughout the year about staffing, student enrollment, or programs are also - at some level - budget discussions. Do we have a school finance and planning calendar that can be distributed?Ī finance and planning calendar is helpful for knowing what happens when and viewing budgeting as a year-long process. Reviewing the check register for the district with a fine-toothed comb isn’t the best use of your time, so what should you be looking at in the school district budget? This list of questions to ask about your district’s budget will help you focus on the big picture and dig deep into what matters in the budget. One of your legally required duties as a school trustee is monitoring the district’s finances-but finding the governance sweet spot can be challenging. After getting a handle on the differences between the board’s governance role and the superintendent and administration’s management role, one of the most challenging topics you’ll tackle is your district’s budget. ![]()
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