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<\/a><\/p>\nBut, in FTA President Manuel Bonilla\u2019s eyes, this is a choice that allows the district to \u201cplay semantics.\u201d<\/p>\n
\u201cThey get to put in whatever amount they want in that reserve and say, well, we only have 5% (or) we only have 2%. But all of that is just a line item,\u201d Bonilla previously told GV Wire. \u201cIt\u2019s what\u2019s called a structural reserve. They\u2019re stocking away money.\u201d<\/p>\n
However, some of this money is actively being spent, while the rest is promised for future use, according to Kato.<\/p>\n
\u201cThe district is not choosing to store away funds rather than using the money for employees\u2019 salaries. The majority of the money is already committed to multi-year plans in several areas,\u201d Kato said. \u201cTo imply the district is stockpiling money is false.\u201d<\/p>\n
Where Does the Money go?<\/p>\n
The ending unrestricted funds not placed in the reserve are dedicated to future textbook adoption, pandemic learning recovery, support negotiated for students by FTA, and inventory.<\/p>\n
Altogether, the district has committed about $81.9 million to these purposes.<\/p>\n
\u201cThe 2025\/26 Proposed Budget includes a multi-year approach for utilization of one-time state and federal recovery resources to address the learning needs of students and the effects of the pandemic,\u201d budget documents state.<\/p>\n
The district has allocated $23.6 million to cover K-12 math textbook adoption in the 26-27 school year and English language arts adoption in 27-28.<\/p>\n
A one-time $32 million pandemic recovery fund is supporting salaries, benefits, and supplies. Another $20 million goes toward an agreement with FTA requiring $30 million to be spent over three years on student support.<\/p>\n
The district committed $6.3 million to inventory, which \u201cincludes the district warehouse of items and areas that are prepaid for a future year that must be reserved.\u201d Inventory is defined as\u00a0 materials such as computers, art supplies, janitorial supplies, and other necessities.<\/p>\n
\u201cIt is important to understand they are one-time in nature and do not represent a long-term reserve for the district, as they will be fully utilized by the end of the 2027-28 school year,\u201d Kato said.<\/p>\n
Potential Layoffs Heighten Criticism<\/p>\n
The size of district reserves is often a point of public scrutiny, but criticism has escalated over the news of potential layoffs.<\/p>\n
\u201cToo many reserves is an indicator that we aren\u2019t doing our job, but sticking to the state minimum (2%) is completely inadequate.\u201d \u2014 Michael Fine, CEO, state Fiscal Crisis and Management Assistance Team <\/p>\n
Fresno Unified is considering more than 250 positions for layoffs, hour-reduction, and reorganization to manage the massive deficit caused in part by declining enrollment.<\/p>\n
The district has lost about 1,200 students a year since the pandemic, costing about $15 million annually in state funding.<\/p>\n
But FTA and its allies believe money can be taken from reserves. They say reserve funding exceeds 10%, five times the 2% state minimum.<\/p>\n
The district only reports 5.83% in reserves, following Board policy that mandates the reserve stay at 5-10%.<\/p>\n
The Importance of Reserves in Education<\/p>\n
School districts rely on a volatile funding source, which allows for little consistency in revenue.<\/p>\n
\u201cIf we do not take action in order to reduce that deficit \u2026 the district\u2019s reserves will drop below the 2% state requirement. And that\u2019s not something that we can do, because that would put us in a scenario of \u2026 being under threat of state takeover.\u201d \u2014 Patrick Jensen, CFO, Fresno Unified <\/p>\n