The Lawrence Board of Education approved on first reading a new fund-balance policy (Policy DD) intended to clarify the district's reserve range and support multiyear budgeting. The motion to approve the policy on first reading passed unanimously on a Jan. 12 roll-call vote.

Superintendent Dr. Swift and policy committee members described the fund balance as a "rainy-day" or contingency fund used for unanticipated expenditures and cash-flow management. The policy recommends a target range at year end of 12–20% of operating funds, a range the superintendent said aligns with Kansas State Department of Education (KSDE) guidance and with best financial-practice norms (approximately two months of operating costs).

Board members and staff discussed how establishing a clear reserve range could enable more predictable multiyear budgeting, including the possibility of multi-year compensation agreements for staff. Cindy Frick, the district finance official, noted that recent changes (referenced as the Gannon case in discussion) have improved the district's ability to forecast funding and plan multi-year projections. The policy will return for final approval in a subsequent meeting following the typical first-read/second-read process.