The Fayette County Board of Education on Nov. 17 adopted a policy that will require an annual reserve fund up of to 10 percent of general operating fund revenues. Expenditures from the reserve fund must be approved by the school board.
The school system for the past two years has kept a 10 percent reserve in the budget, though it came with no policy to regulate how the funds could be spent.
“The balance for this account will be determined and approved by the board as a part of the adoption of the annual budget. Funds may only be appropriated from the budgetary reserve upon recommendation by the superintendent and board approval,” the policy states.
The vote to establish the policy was unanimous.
“We have something to fall back on now,” said Superintendent Jody Barrow.
The idea that the board establish a reserve fund which could only be accessed by a school board vote first surfaced several years ago at the recommendation of board members Marion Key and Bob Todd. The recommendation came at a time when there were insufficient votes on the board to enact the policy.
