[SchoolFinance] Undesignated Fund Balance

[Kate Bolton]

Scarborough total at 6/30/24 was 5.89%, but we had designated some for FY25
revenue - undesignated was 3.47%.

Kate Bolton
(she/her/hers and here's why <https://www.mypronouns.org/what-and-why/>)
Director of Business & Finance
Scarborough Public Schools
Tel: 207-730-4114



On Thu, Apr 10, 2025 at 10:54 AM Gravelle, Paula B <
Paula.B.Gravelle at maine.gov> wrote:

> Carla,
>
>
>
> Yes there is a proposed bill to keep it at 9%, but that will have to go
> through the legislative process and be enacted before it can be enforced.
>
>
>
> Current law restricts it to 5% at this time.
>
>
>
> FYI: here is a link to LD 1103:
> https://legislature.maine.gov/backend/App/services/getDocument.aspx?documentId=112830
>
>
>
> Sincerely,
>
> ________________________________________
>
> *Paula Gravelle*
> Director of Public School Finance
> Maine Department of Education
> 23 State House Station
> Augusta, Maine 04333-0023
> *Email: *paula.b.gravelle at maine.gov
> *Phone*: 207-624-6792
>
> Maine DOE <http://www.maine.gov/doe> | Facebook
> <https://www.facebook.com/MaineDepartmentofEducation1/> | Twitter
> <https://twitter.com/mdoenews> | Instagram
> <https://www.instagram.com/mainedepted/?hl=en> | Maine DOE Newsroom
> <https://mainedoenews.net/>
>
>
>
> *From:* SchoolFinance <schoolfinance-bounces at maillist.informe.org> *On
> Behalf Of *Carla Franzose
> *Sent:* Thursday, April 10, 2025 10:27 AM
> *To:* Moderated information sharing for school business managers <
> schoolfinance at maillist.informe.org>
> *Subject:* Re: [SchoolFinance] Undesignated Fund Balance
>
>
>
> *EXTERNAL: This email originated from outside of the State of Maine Mail
> System. Do not click links or open attachments unless you recognize the
> sender and know the content is safe.*
>
> But isn't there a proposed bill, LD 1103, that proposes to allow the
> threshold to stay at 9% that applies to all future fiscal years?
>
>
>
> Carla
>
>
>
> On Thu, Apr 10, 2025 at 9:10 AM Gravelle, Paula B <
> Paula.B.Gravelle at maine.gov> wrote:
>
> Hello All,
>
>
>
> Given the current conversation here is a reminder of the current statute
> for unallocated fund balances
>
>
>
> As always, we recommend you seek guidance from either legal counsel and/or
> your auditor.
>
>
>
> Here is a copy of the specific statute: Statue is 20-A 15689-B, 6.
> <https://www.mainelegislature.org/legis/statutes/20-A/title20-Asec15689-B.html>
>
>
>
> *6.  Balance of allocations.  *Notwithstanding any other law, general
> operating fund balances at the end of a school administrative unit's fiscal
> year must be carried forward to meet the unit's needs in the next year or
> over a period not to exceed 3 years. Unallocated balances in excess of 5%
> of the previous fiscal year's school budget must be used to reduce the
> state and local share of the total allocation for the purpose of computing
> state subsidy. School boards may carry forward unallocated balances in
> excess of 5% of the previous year's school budget and disburse these funds
> in the next year or over a period not to exceed 3 years. For fiscal years
> 2021-22, 2022-23, 2023-24 and 2024-25 only, unallocated balances in excess
> of 9% of the previous fiscal year's school budget must be used to reduce
> the state and local share of the total allocation for the purpose of
> computing state subsidy and school boards may carry forward unallocated
> balances in excess of 9% of the previous fiscal year's school budget and
> disburse these funds in the next year or over a period not to exceed 3
> years.
>
> [PL 2021, c. 213, §1 (AMD).]
>
>
>
> FY 2020-21 = May carry forward Unallocated Balance up to 5% of previous
> fiscal year’s school budget
>
> FY 2021-22 = May carry forward Unallocated Balance up to 9% of previous
> fiscal year’s school budget
>
> FY 2022-23 = May carry forward Unallocated Balance up to 9% of previous
> fiscal year’s school budget
>
> FY 2023-24 = May carry forward Unallocated Balance up to 9% of previous
> fiscal year’s school budget
>
> FY 2024-25 = May carry forward Unallocated Balance up to 9% of previous
> fiscal year’s school budget
>
> FY 2025-26 onward = May carry forward Unallocated Balance up to 5% of
> previous fiscal year’s school budget
>
>
>
> I hope this helps.
>
>
>
> Sincerely,
>
>
>
> ________________________________________
>
> *Paula Gravelle*
> Director of Public School Finance
> Maine Department of Education
> 23 State House Station
> Augusta, Maine 04333-0023
> *Email: *paula.b.gravelle at maine.gov
> *Phone*: 207-624-6792
>
> Maine DOE <http://www.maine.gov/doe> | Facebook
> <https://www.facebook.com/MaineDepartmentofEducation1/> | Twitter
> <https://twitter.com/mdoenews> | Instagram
> <https://www.instagram.com/mainedepted/?hl=en> | Maine DOE Newsroom
> <https://mainedoenews.net/>
>
>
>
> On Tue, Apr 8, 2025 at 10:44 AM Carla Franzose <cfranzose at carrabec.org>
> wrote:
>
> Just wondering if you all could share what % of the previous year's budget
> is your unallocated fund balance.  RSU 74's is currently at 11.5%
>
>
>
>
>
> --
>
> Carla Franzose
>
> Business Secretary, RSU 74
>
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>
>
> _______________________________________________
> SchoolFinance mailing list
> SchoolFinance at maillist.informe.org
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>
>
>
>
> --
>
> Carla Franzose
>
> Business Secretary, RSU 74
> _______________________________________________
> SchoolFinance mailing list
> SchoolFinance at maillist.informe.org
> http://maillist.informe.org/mailman/listinfo/schoolfinance
>
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