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Reserve funds: A means of survival

+ Workers' Compensation Reserve ($1,141,481)-since self-insuring Workers' Compensation, we have experienced cost savings. This reserve account is used to pay compensation and benefits, medical, hospital and other expenses authorized by Article 2 of the Workers' Compensation Law.

Keep in mind that if the reserves did not exist, North Syracuse Central School District would have to raise taxes sometime in the future. But let's consider another scenario-let's imagine that we were to throw caution to the winds and use the entire fund balance and all the reserves-that's approximately $9,719,121 million. The school district would still be short $3 million for 2011-2012, start off 2012-2013 approximately $3.1 million behind the eight ball, and have no reserves to deal with future responsibilities.

That's no way to do business.

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