"Rainy Day Funds" Should Be Limited

A new story in the Albany Democrat Herald (link), reports that school districts around the state have been saving a substantial portion of their budgets each year, apparently unbeknownst to some observers, in case of future budget declines. According to that article,

"The Oregon School Boards Association recommends a carryover, or ending fund balance, of about 5 percent to 8 percent. But only 21 of Oregon's 197 school districts hit that target. The rest carried over balances ranging from 9 percent to 275 percent at the end of last school year."

I think the school districts need to come clean with the legislators and the public. The schools should not be allowed to hold more than 2-8% of their funds for a Rainy Day Fund. Recent media coverage around the state is bringing this issue into the light of day, but school districts themselves need to prioritize openness throughout the funding process.