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Board temporarily lowers required ending fund balance to 6.5% to finalize budget
Summary
To give the superintendent flexibility in a constrained fiscal year, the board ratified a resolution temporarily suspending the 8% DBDB ending fund-balance policy and allowing a 6.5% unreserved balance for the current budget year, with an annual review required in the next budget cycle.
Board members discussed a proposed resolution to temporarily suspend board policy DBDB, which requires an 8% ending fund balance, and instead allow an unreserved ending fund balance floor of 6.5% for the current year with a mandatory review during the 2728 budget process.
Finance staff said the difference is roughly $1.3 million in the current year (an estimate provided in discussion) and that the district is awaiting the May reconciliation of the state school fund that could change projections. Supporters said the temporary change provides necessary latitude to adopt a balanced and legal budget while preserving long-term fiscal planning; at least one board member requested the resolution be documented in policy committee materials so future readers can see the temporary action.
A motion to ratify resolution 2026-10 authorizing temporary suspension of the 8% requirement (with fund balance to remain at or above 6.5%) was moved, seconded and approved by voice vote. The resolution directs review as part of the 2728 budget process.
