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Domain · Technical Depth

A district’s general-fund reserve has drifted down to two percent while enrollment is declining. Walk me through what that signals and how you’d diagnose the structural problem.

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A two-percent reserve is a red flag — most boards and county offices want three to five percent minimum for cash flow, because state apportionment arrives on a lag and payroll is twice a month.

The full answer: structure, worked example, likely follow-up.

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