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Reserve Fund/Working Cash

APS does NOT have a $94 million reserve fund (or an $81 million reserve fund, which is another number that has been bounced around). This figure includes money earned by teachers, educational assistants and other school-based employees that is paid to them during the summer.

This misleading figure also isn’t taking into account working cash that we use to cover our bills while waiting for reimbursements from the state, federal government and others. For example, we have to cover the cost of summer school – including salaries for teachers – long before we are reimbursed for it. 

The truth is, our reserve fund is less than half of what has been reported. We already into it by about $12 million to cover mid-year reductions, and we expect to take another $5 million from the account to help cover cuts in 2017-18.

Cash reserves on June 30, 2016                           

$58 million

Mid-Year Reduction                                            

-$12 million

Estimated cash reserves on June 30, 2017           

$46 million

Reduction for 2017-18                                        

-$5 million

Estimated cash reserves on June 30, 2018           

$41 million

It should be noted that we have more than $41 million in monthly bills, which include payroll and utilities.

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