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Board approves excess-reserves report; district exempt from state spend-down
Summary
The board approved the district's excess-reserves report and staff explained that, as a basic-aid district under the state's ADA threshold, the district is exempt from a state-mandated spend-down rule.
The board approved the district's public report on excess reserves after a staff explanation of Education Code obligations and exemptions. The business official explained that state law requires districts that exceed a 4% reserve cap to report and justify excess reserves, and noted that basic-aid districts with fewer than 2,501 average daily attendance are exempt from a forced spend-down.
"Under current Ed Code, there is law that would require districts to spend down their excess reserves when the state's own reserves are high," the business official explained, then clarified the district's exemption for smaller basic-aid districts. The board moved and approved the excess-reserves report by roll call.
