Board holds first reading of proposed fiscal reserve policy to build a 7% safety net

At its Aug. 18 meeting, the San Ramon Valley Unified School District Board held a first reading of a draft Fiscal Reserve Policy that would formalize a district goal of a 7% operating reserve (3% state requirement plus a 4% strategic reserve).

Assistant Superintendent Danny Hillman said the extra strategic reserve is intended to give the district more time to respond to revenue shortfalls or unanticipated expenditures without making midyear cuts to student services. "We're calling it the strategic reserve to align with our strategic directions," Hillman said, explaining that the draft policy aims to balance prudence with board flexibility over how reserves are used.

Trustees discussed how the reserve would be operationalized—staff suggested labeling fund balances as "assigned/committed" while the district builds toward the 7% goal and using fund‑17 transfers once the target is reached. Several trustees noted that the district's recent budget volatility demonstrates the value of an additional cushion and emphasized that building the reserve should not amount to stockpiling funds at the expense of students. "This policy puts the board in the driver's seat to say with knowledge of forethought, we are going to use this 4% in this way," one trustee said.

This was a first reading; staff will incorporate feedback and return the proposed policy for further board consideration and formal adoption at a later meeting. Trustees asked staff to identify discrete steps and reporting milestones so the board can track progress toward the target.