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GovState CFO proposes 25% minimum reserve policy, reports $19.2 million in unrestricted reserves
Summary
CFO Villalyn Baluga proposed a regulation setting a 25%-of-annual-operations minimum reserve (about three months) and reported unrestricted reserves of $19.2 million after an accounting adjustment, which she said equals roughly 2½ months of operating funds.
At a Dec. 5 Committee of the Whole meeting, Villalyn Baluga, chief financial officer of Governors State University, proposed a regulation that would set a minimum reserve threshold equivalent to 25% of annual operating expenses.
Baluga told trustees the rule is designed "to protect the financial strength of Governors State University, ensuring GSU's resilience in the face of uncertainty and positioning us to be ready for the future with confidence." She said the regulation would require a replenishment plan, with Board approval, within 12 months if reserves fall below the threshold. The regulation would designate four permitted uses for reserves: capital, debt service, strategic initiatives and emergency spending.
During questions from the Board, Baluga reported the university’s current unrestricted reserve balance at $19.2 million, a figure she said reflects a $1.4 million reversal tied to sick-leave liability accounting and represents "about 2 and a half months" of operating expenses. She also noted an earlier audited figure presented in October 2025 of $17.8 million and explained the change as an accounting adjustment.
The presentation identified the Office of Budget and Financial Planning and the CFO as responsible for reserve compliance, with fiscal managers across units accountable for their areas. Trustees discussed the proposal; the minutes record the presentation and discussion but do not record a final vote on the regulation during this meeting.
The Board listed the matter on the agenda as an information item; the university will need to return with any formal action or changes for a subsequent meeting before a regulation is adopted.
