Albany schools propose to replenish reserves after year‑end surplus; board discusses fund‑balance mechanics

Chief financial staff presented an estimated year‑end surplus and a proposal to replenish reserves drawn the prior year.

Mr. Caris said the district projects about $16.5 million in surplus and recommended moving $1.5 million to the workers' compensation reserve, $2.75 million to the unemployment insurance reserve, $4 million to employee retirement reserves (ERS and TRS), and roughly $3.8 million to the employee benefit and liability reserve. Any remaining surplus would be placed in capital project reserves to support ongoing construction and scope increases.

"When I build the budget, we have to have a cushion in it because there are unexpected costs for the district," Mr. Caris said, explaining the need to maintain reserve cushions for high‑cost special‑education placements and unplanned health expenses.

Board members asked whether the transfers would force program cuts (staff answered no) and sought clarity about how reserves are held. Mr. Caris said the district historically has used journal entries to allocate reserves and plans to move toward separate bank accounts for each reserve to make reconciliations clearer.

The conversation concluded with approval of the routine consent agenda earlier in the meeting; no final vote on the proposed reserve transfers was recorded Tuesday and staff indicated the transfers would be executed through a formal resolution at a future meeting or as part of standard year‑end accounting practice.