Fund Balance
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Fund Balance

Fund Balance

MPS has faced funding deficits for the past seven years, but has still been able to balance its budget by accessing funds from its reserves

What are reserves? Also known as the Fund Balance, reserves are dollars available when revenues have, in the past, exceeded expenses.

  • They are often used for unanticipated or emergency situations, or to make important one-time investments in district initiatives. Reserves are also important when it comes to selling bonds for capital projects. The fund balance is one factor outside agencies use in determining a district’s bond rating.
  • MPS’s reserves for the past seven years have been healthy enough to access to overcome deficits, and because we knew we had this money available, significant funding changes were not made at that time.
  • Over the course of those seven years, our reserves have decreased from more than $122 million to about $42 million now.


Chart showing General Fund Unassigned balance. In 2010 the balance was $122,431,66; in 2011 $80,559,200; in 2012 $63,520,903; in 2013 $50,002,716; in 2014 $44,913,892; in 2015 $49,436,409; in 2016 $54,219,695; in 2017 $42,008,976 remains in the unassigned fund balance reserves.


Reserves (aka the Fund Balance) are no longer an option

  • MPS board policy 3700 states, “The district will take steps to attain a minimum unassigned General fund balance of no less than eight percent (8%) of the estimated General Fund expenditures for the following year.”