Financial Stability or Missed Opportunity? A Look at FUSD’s Growing Reserves
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What happened?
On September 10th, our District leaders came together to review and approve the financial activities from the previous school year, 2024-25, as captured in the unaudited actuals report. This is a key step in the annual budget cycle. The final, audited version will be presented in December 2025 (review our Budget Cycle Guide to learn more).
The most notable update: FUSD’s Unrestricted General Fund reserve has grown beyond expectations. The board had projected a 7.64% reserve, but during the September 10th meeting Chief Financial Officer Patrick Jensen reported that the actual reserve stands at 8.36% – a 0.72% increase.
This growth comes from additional state revenue, including approximately $1.4 million from increased lottery and transportation funds and back-due Medi-Cal reimbursements. The fund balance is trending back toward pre-COVID levels after fluctuations caused by pandemic-related federal and state funding.
District leaders framed this as responsible money management, but it raises a bigger question: Are reserves climbing too high at the expense of student programs?
Why is it important?
By law, California requires districts of Fresno’s size to keep at least a 2% reserve. The state’s intent is clear: districts should spend 98% of their dollars in the same year they receive them, directly supporting students.
At 8.36%, Fresno Unified is holding more than four times the state’s minimum requirement. That translates to tens of millions of dollars of the budget set aside instead of being spent on classrooms, tutoring, after-school programs, or reducing class sizes.
Reserves are meant to safeguard against uncertainty. However, there’s a real tradeoff: every extra dollar saved is a dollar not reaching classrooms and today’s students. While the district frames its reserve as a testament to responsible financial management, the bigger question is whether Fresno Unified has tipped too far toward caution. Is fiscal “safety” coming at the expense of student opportunity? With so many students still not achieving grade-level proficiency, we must explore what more can be done to ensure that today’s students benefit from today’s dollars.
What can you do?
- Attend tonight’s board meeting (5:30PM, in-person at Fresno Unified School District, Education Center, 2309 Tulare Street, Fresno, California – 2nd floor) to share your thoughts in public comment.
- Strengthen Your Advocacy: Join GO’s Family Leadership Program (FLP) to learn how school funding and governance work – and how your voice can advocate for change in our community.
- Join a district committee: Reach out to your school site for more information on being a committee member for your school or for the district.
- School Finance Resource Library: Explore GO’s School Finance Library for resources to help you learn more about the LCAP, budget, and how school funding works. Our newest resource, What is a student centered budget, explores ways to shift from budgeting as usual to a budget truly centered on student needs.