Board leans toward a 7% unrestricted / 10% overall fund-balance policy to increase fiscal cushioning
Summary
CFO Jamie Lewis proposed a fund-balance policy that would set a 7% unrestricted general-fund target and a 10% overall target; board members pressed for clearer language on how vacancy savings and one-time payments would be treated and asked staff for a breakdown of last year’s vacancy-related savings before public hearing.
The Hillsborough County School Board heard a detailed presentation of a proposed fiscal planning policy that would set district reserve targets and outline procedures if reserves fall below statutory thresholds.
CFO Jamie Lewis briefed the board on Florida Statute 1011.051 and the district’s fund-balance history, recommending a policy that establishes a 7% unrestricted general-fund balance and a 10% overall general-fund ending balance. "The district is recommending that to maintain its service to students, we want to maintain a general fund that is 7% ... and an overall 10% general fund ending fund balance as a percentage of the total revenues for the fiscal year," Lewis said.
Lewis explained the statutory floor: falling below 3% triggers board and commissioner notification and potential state oversight if the level remains low; falling below 2% can prompt a commissioner review and appointment of a financial emergency state official. He noted historical swings in the district’s reserves, highlighted that $19,000,000 of reserves were used this year for negotiated recurring costs, and warned the unrestricted portion at 7% provides roughly two biweekly payrolls of coverage compared with about one pay period at the statutory 3% minimum.
Board members — especially Member Vaughn — pressed whether the policy would impede annual salary-step increases or bargaining outcomes; Lewis and Superintendent Ayers said the policy sets thresholds and processes rather than an absolute ban and that one-time payments (bonuses) remain allowable. Members asked for a detailed breakdown of how much of last year’s increase in fund balance resulted from unfilled vacancies and how that interfaced with spending on temporary staffing.
Outcome: The board asked staff to refine the draft to clarify how vacancy savings and one-time payments are treated and to return the revised policy and requested data before moving to public hearing; staff and the superintendent said they would make those clarifications, and there was consensus to move the policy forward after edits.
