Reserve Watch

RUSD's reserves are projected to drop below the district's own policy floor within three years.

36.5%

FY 2025-26 (actual)

→

24.3%

FY 2028-29 (projected)

Board Policy 3105.1 sets the minimum reserve at 27%. The FY28-29 projection falls 2.7 points below.

Reserve History

Reserve levels over time

27% floor

FY 2022-23

45%

FY 2023-24

41.7%

FY 2024-25

41.5%

FY 2025-26

36.5%

FY 2026-27

projected

31.3%

FY 2027-28

projected

28%

FY 2028-29

projected

24.3%

↓ below floor

Actual

Projected (above floor)

Projected (below policy floor)

Policy floor (27%)

Sources: Annual Financial Audit Report 2023-24 · FY 2024-25 Year-End Financial Report (Unaudited) · FY 2026-27 Annual Budget for Adoption (June 2026) · Multi-Year Financial Projection. FY22-23 estimated.

Plain English

What does this mean — and what can the district do?

What it means

A district's reserve is its savings account — money set aside to cover unexpected costs like a bad state budget year, emergency repairs, or a sudden enrollment drop. Board Policy 3105.1 sets RUSD's minimum reserve at 27% of its annual operating budget.

The FY26-27 Annual Budget (adopted June 2026) shows reserves ending FY25-26 at 36.5% — comfortably above the floor. But the multi-year projection puts reserves at 24.3% by FY28-29— 2.7 points below the board's own policy floor. That would trigger a required conversation about structural changes to the budget.

This is not a crisis. A 3-year projection can change significantly with enrollment shifts, state funding changes, or targeted reductions. But it is a planning signal the board needs to act on now.

What tools the district has

•Local parcel tax (requires 2/3 voter approval)
•General obligation bond for facilities (55% voter threshold)
•Developer fees from new construction
•State categorical program optimization
•Inter-district transfer enrollment strategy
•Expenditure reductions through attrition
•Budget Advisory Task Force recommendations

Lina's take

“This isn't a crisis. It's a planning horizon. The budget has three years before reserves touch the floor — that's enough time to act thoughtfully. What I want is for the full menu of revenue and expenditure tools to be on the table, transparently, with the community in the room.”

Sources

Board Policy 3105.1 — Board-adopted minimum reserve requirement of 27% of annual operating budget.
Annual Financial Audit Report 2023-24 — Certified actual reserves: $12.18M unrestricted / $29.2M expenditures = 41.7%.
FY 2024-25 Year-End Financial Report (Unaudited) — Actual reserves: $12.56M unrestricted / $30.29M expenditures = 41.5%.
FY 2026-27 Annual Budget for Adoption — June 2026. FY25-26 year-end actual: 36.5%. FY26-27 projected: 31.3%.
Multi-Year Financial Projection (3-Year) — FY27-28: 28.0%. FY28-29: 24.3% (2.7 points below policy floor).

Interactive Tool

Try the Budget Slider

See how different budget scenarios affect reserve levels — and what trade-offs the board will need to weigh.

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