Maintain a strong and forward planning fund balance policy

  • In order to help protect LEISD from a future financial crisis, a fund balance policy must address possible future critical shortfalls and set levels of financial reserves.

    • At minimum, the District shall maintain unassigned fund balances in the general operating fund in an amount equal to or greater than 24 percent of the total annual operating expenditures.
    • The District shall maintain fund balances for critical short-falls due to the uncertainty of state funding, fluctuating enrollment, and unpredictable taxable assessed values.
      • The District fund balance includes 3-5% of the “Net total State/Local M&O revenue” in state funding template as of the time of the initial budget for future unknown legislative changes or short-falls in state funding.
      • The District fund balance includes a reserve for the recapture of funds by the state due to Chapter 41 wealth equalization formula. These funds may be used to cover future budgetary short-falls as a result of increases in state recapture.
      • The District fund balance includes funds for Operational Infrastructure to help protect the District in cases of an operational emergency.
      • The District fund balance includes funds for Technology Infrastructure to help protect the District financially in cases of a technology emergency. 
    • The District's discretionary fund balance will be maintained at a level which may fund one-time expenditures. The District will safeguard against operating out of fund balance for on-going operational costs. The safeguard may include a minimum discretionary fund balance level taking into consideration future financial pressures.