Board advances revisions to budget policy; proposes 17% minimum general‑fund reserve

St. Charles Parish administration presented a package of first readings June 22 that would codify existing best practices in Policy 3.01 (annual operating budget) and related procedures and would add a new Policy 3.01.02 setting a 17% minimum general‑fund reserve target.

CFO Mr. Neighbors said the proposed policy moves language historically kept in manuals into the formal policy and clarifies statutory filing deadlines, including a requirement to submit budget documents to the state superintendent by Sept. 30. "This brings a lot of that best practice language into a consolidated place for the board's approval," he said.

On reserves, administration proposed a concise policy statement (17% minimum) supported by an expanded procedure to monitor and maintain the balance. The procedure would require the superintendent to prepare a plan of expenditure reductions and/or revenue increases if the fund balance falls below the 17% minimum and to present a replenishment plan to restore the reserve within one to three years.

Board members asked how 17% is calculated; staff said it equates to roughly two months of recurring operating costs and is a commonly used minimum standard. Committee members also pressed for annual or periodic reviews to ensure policies keep pace with technology changes and other operational needs; administration agreed to add a codified annual policy/procedure review in follow‑up materials.

Context: the proposed reserve policy emerges as the district responds to Eisner Amper's cash and forecast findings. Committee members discussed triggers for amended budgets (e.g., actual revenues or expenditures deviating by 5% from budgeted amounts) and tighter quarterly budget reviews at department and school levels.

Next steps: the proposed policy and procedures will appear on the full‑board agenda for formal first/second readings; administration said it will provide the comparative documents (redline and clean versions) and incorporate feedback about periodic reviews.