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Case 2-6 School Budget

Decent Essays

The school district would have be deficit spending based on the budget example, and would be required to use the district fund balance to balance the budget if no cuts to the general budget were done. If the district did not change any of their budget, they would have a negative fund balance after 11 months, and would end the fiscal year with a negative fund balance of nearly $77,000 (see Appendix A). It would be a difficult decision for a district to allow the fund balance to go into red, however without proper monitoring it could occur. If the school board of education for the district would not approve deficit spending, the administrative team would have to find ways to trim the 2016-17 budget to match the assumed revenue. If were to

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