General Fund Budget
The District shall prepare an annual 5-year general fund budget forecast that includes estimates of unspent authorized budget (spending authority), as well as restricted, assigned and unassigned fund balances available at the end of each fiscal year. The estimates shall be prepared utilizing scenarios for likely State Supplementary Assistance (SSA) rates and enrollment projections. The projections shall include estimates of property tax rates and income surtax rates, if applicable.
Monthly Update
The Treasurer shall report monthly to the Board as to actual revenue and expenditures for the month and year-to-date, as compared to budgeted revenues and expenditures and compared to historical revenues and expenditures (both in dollar amounts and percentages), for each fund maintained by the district. The Treasurer shall provide context with respect to current year variances between budgeted and historical revenues and expenditures.
Budget Amendments
The District shall amend the certified budget, when necessary, at the earliest practical date after receipt of knowledge indicating that the budget must be amended and prior to any statutory deadline. Monthly budget reports shall include amended amounts at the earliest possible date after the receipt of knowledge indicating that the budgets must be amended.
Solvency Ratio
The District’s goal is to maintain an unassigned general fund balance that will allow the solvency ratio to fall within the 10-20% target range. The current year’s projected balance will be discussed with the Board before establishing the succeeding years cash reserve levy and before staffing and other spending decisions are finalized.
Unspent Budget Authority
The Unspent Budget Authority is the remaining legal spending authority at the end of the fiscal year. The district’s Unspent Budget Authority at June 30 shall be no less than 10 percent with target of 20 percent and a maximum of 25 percent of its general fund budget (spending) authority. The calculation shall divide the Unspent Budget Authority by the Maximum Authorized Budget to determine the percentage. Maintaining an adequate Unspent Budget Authority provides legal authority to spend the undesignated, unreserved fund balance. A report on meeting this target will be made annually to the Board.
Contingency
The district shall prepare a budget that includes a contingency of at least 0.5 percent of the general fund budgeted expenditures.
Modified Supplemental Amount
The district shall solicit from the School Budget Review Committee additional Modified Supplemental Amount (spending authority) where it may be available for items such as special education deficit, increasing enrollment, budget guarantee, open enrollment not on prior year count, English Language Learner, and any other lawful purposes. The board shall be provided a resolution to approve the maximum request authorized. Any award of Modified Supplemental Amount may be levied as a cash reserve levy, in full, in the next available budget year. For recurring program deficits that are predictable and estimable, the district shall levy in advance for the immediately succeeding year as part of the general cash reserve levy if the deficit causes the estimated assigned and unassigned to fall below the minimum required. Grants of spending authority not funded by the state or other sources may ultimately be levied against property taxes.
Approved: 10/21/2019 Reviewed: Revised: