§ 16603 Reserve Fund Transfer Rules

• •If a reserve fund has more than half the money spent on operating expenses last year, the board can move the extra money to the general fund.
• •This rule helps make sure extra money is used where it's needed most.
• •The board has the power to decide when to move this extra money.

A school has a reserve fund with extra money.

If the school spent $100,000 last year on operating expenses and the reserve fund has $60,000, the board can move $10,000 (the amount over $50,000) to the general fund.