Board debates reserve policy: keep 10% or change to a general-fund range; agrees to consult unions

The Silver Falls School District Board discussed revisions to policy DB (fund balance) and signaled interest in changing how the district calculates its reserve target and in seeking union input on the new approach.

District staff opened discussion by asking whether the board wanted to keep the policy's current 10% target of total adopted revenues or change the base to the general fund or adopt a percentage range. Board members cited a range of professional recommendations: one presenter noted a school-business group recommending 3%–8% of unreserved general fund, another referenced a broader local-government recommendation range of 5%–15%, and a school-district-focused recommendation near 8%.

Several trustees urged adding a trigger mechanism: if projected reserves fall below the adopted threshold, the board would be required to take action before June 30 to address the shortfall. Board members also supported separating capital reserves (deferred maintenance or roofing funds) from the general fund target to clarify budgeting and to demonstrate fiscal stewardship to voters.

Trustees asked district staff to meet with union representatives to explain reserve policy options and seek input to reduce bargaining friction over reserves in future negotiations. The board indicated it favored changing the policy base to general-fund calculations and adding language that would require explicit board action to draw reserves below the adopted threshold. Staff will follow the regular policy-adoption process to return a revised draft for future consideration.