Board streamlines fiscal-reserve policy, sets unassigned general fund reserve at 8%

The Hillsborough County School Board reviewed revisions to its fiscal-planning policy to clarify fund-balance language and set a single unassigned general-fund reserve at 8 percent of projected operating revenues.

Jamie Lewis, a district finance staff member, told the board the prior text had duplicate language that produced an unintended 16 percent reserve reference and that the revised draft simplifies and consolidates the provisions. "The revision is a simplified version where we have one reserve at 8%," Lewis said. The draft would require the budget to include a reserve in the unassigned fund balance equal to or greater than 8 percent of projected general fund operating revenues.

Board members discussed the policy’s interaction with a possible move to self-insure employee benefits. Board Member Vaughn said she worried about setting too high a required reserve if the district changes to self-insurance or faces uncertain state and federal funding changes. Finance staff and Dr. Hahn argued 8 percent is reasonable and consistent with peer districts; Dr. Hahn said the district often ends years above 8 percent and that an 8 percent floor safeguards the district against unanticipated events.

Lewis noted options to phase in amounts for a self-insurance reserve (for example, spreading a $48 million target over several years). Board Member Combs and others emphasized transparency and the need to balance reserves with school-level needs such as filling vacancies. The board did not hold a formal vote at the workshop; staff said the revision reflects board direction from an earlier workshop and would be advanced in the policy cycle.