JCSD Policy

Fund Balance

The Board recognizes its responsibility to establish an unreserved fund balance¹ in an amount sufficient to:

1. Protect the District from unnecessary borrowing in order to meet cash-flow needs;
2. Provide prudent reserves to meet unexpected emergencies and protect against catastrophic events;
3. Meet the uncertainties of state and federal funding; and
4. Help ensure a District credit rating that would qualify the District for lower interest costs and greater marketability of bonds that may be necessary in the construction and renovation of school facilities.

Consequently, the Board directs the Superintendent to manage the currently adopted budget in such a way as to ensure an ending fund balance of at least eight (8) percent of total actual revenues when stable funding is anticipated from federal, state and local sources, and upwards to a maximum of fifteen (15) percent when funding from the same sources is uncertain. The Board recognizes that the state does not maintain adequate reserves to protect school districts and it is the responsibility of the District to provide an adequate ending fund balance to ensure long-term stability for the District.

In determining an appropriate unreserved fund balance, the Board will consider a variety of factors with potential impact on the District’s budget including the predictability and volatility of its expenditures²; the availability of resources in other funds as well as the potential drain upon general fund resources from other funds³; liquidity⁴; and designations⁵. Such factors will be reviewed annually.

OAR 581-022-1130 Illegal Immigration and Immigration Reform Act of 1996, 8 U.S.C. Sections 1101,1221,1252,1324,1363,1367.