Westbury school leaders detail reserve funds, say unappropriated balance will finish above state guidance

Westbury Union Free School District officials described the district's reserve accounts and fund-balance changes during the board's Sept. 9 planning meeting, saying the district will end the year slightly above New York State's recommended 4% unappropriated fund balance. Assistant Superintendent for Business Trish O'Neil outlined line-by-line changes to reserves and explained why some accounts rose or fell. The account summary shown on the agenda included several targeted reserves and what O'Neil described as carryovers and legally restricted funds. "The reserves that you see on the agenda, the boards are required to approve them each year. We start with the balance at June 30 and show you the changes that overall made from year to year," O'Neil said. She told the board the district had an "unappropriated fund balance" of $10,600,000 at the start of the year and would finish the year slightly above 5% of budget. Why it matters: the unappropriated fund balance serves as a district-level rainy-day fund that helps the district absorb revenue or expense swings, including uncertainty in state and federal aid. Trustees pressed for clarity about what specific reserves fund and whether the district complied with state guidance. Most important details: O'Neil said the district held specialized reserves that can be used only for defined purposes. Examples she cited: the reserve for encumbrances dropped from about $4,800,000 to approximately $3,900,000 because outstanding purchase orders carry into the new year; the Teachers' Retirement System (TRS) reserve was increased by $1,381,052 to a balance of $6,500,000; and the employee benefits (EBLR) reserve decreased by about $411,000 from a prior $7,700,000 balance, primarily reflecting retirements and separations. The capital reserve began the year with roughly $5.8 million; voters had authorized adding $2.5 million annually when available, and the board moved those funds into the capital fund for future projects so the capital reserve balance reported as of June 30, 2025, is zero. Board context: Board President Robert Treano Jr. and other trustees asked whether the state mandates a specific reserve level. Treano noted the state's historical guidance that unappropriated fund balance be about 4% of the upcoming budget and said the district expects to end the year slightly above 5%, which he described as "prudent" given federal and state revenue uncertainty. What trustees and staff said: O'Neil emphasized that specific reserves (workers' compensation, TRS, encumbrances, property-loss/liability) are legally restricted and reviewed by auditors annually. Trustee and public questions led staff to confirm the district has not had to draw from its unappropriated fund balance to maintain operations; the district has used capital reserves to pay for capital projects as intended. Next steps: staff told trustees they will present the required reserve approvals on a future consent agenda, and auditors will continue to review the validity of the reserves during the annual audit.