Admin

Use of Fund Balance

Has the district considered using their excess fund balance to offset the shortfall?
Yes, the district prepared for the lean years knowing we were opening four new schools in four years. For example, over the last two years, Klein ISD used $28.9 million of excess fund balance, which is like our savings account, or the "state's rainy day fund" in order to balance the budget. At the close of this school year, the fund balance is projected to be at 25% of our expenditures which is the lowest we can take it and still be within district policy.The chart below shows the amount and percentage of fund balance in relation to the overall M&O budget.

Fund Balance 2015-2018
Why can’t the district continue to use fund balance taking it below 25%?
The 25% represents our payroll for roughly two and a half months and is the recommended reserve amount by the Texas Education Agency and bond rating agencies.


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