Can MPCSD tap into its budgetary reserves to address its annual operating deficits?
The reserves cannot address a structural operating deficit. Reserves are one time monies that ongoing expenses will deplete. Reserves can be used to protect schools by providing the financial flexibility to minimize impacts from unexpected shortfalls on a short term basis only. Per Board Policy 3470 the reserve for economic uncertainty should not be permitted to drop below 15% in any budget year or 10% in multiyear projections. As of projections included in the 2017-18 Adopted Budget, reserves are anticipated to fall below 15% by fiscal year 2021-22.