Rowland teachers think caps on budget reserves are needed to force school districts to spend money they’ve been holding on to. But the Rowland Unified School Board wants to repeal the new reserve caps.
“This is not just a local issue -- Rowland Unified School District along with approximately 310 school districts across California, have adopted a similar resolution to encourage the governor and the legislature to repeal the reserve cap,” said Superintendent Julie Mitchell.
When voters approved Prop. 2, the Rainy Day Fund, it was tied to SB 858, which limits school reserves to twice the minimum allowed for economic uncertainties. Rowland officials say 3 percent is their minimum, but it currently maintains a unrestricted reserve of $15 million — about 10 percent of its $155 million budget.
But the Association of Rowland Educators (ARE) say the district has more than $50 million when you add all the reserves together.
“Based on our first interim report adopted by the Board of Education in December, the district’s reserve was $31.2 million and of that, $15.6 million is restricted and $15.6 million is unrestricted reserves,” Mitchell reported. “The $15.6 million of restricted reserves can’t be used for general purposes.” Click HERE for entire story.