A restored 3 percent, state-mandated reserve is official for the San Mateo Union High School District but the district is far from a comfortable financial situation. (Daily Journal)

On Thursday, the Board of Trustees will review the unaudited actual ending balance for the last fiscal year. The totals include good news for the district $937,758 more money than anticipated was left over. Originally the district planned to begin with a 2.25 percent reserve this year, or $2.1 million. This extra cash establishes a full 3 percent reserve. It's good news but this is still a slow process,? said Chief Business Official Liz McManus. The board has a plan of creating a 6 percent reserve creating a real cushion in case another financial downturn were to occur. The district is funded by property taxes meaning there could be unexpected changes or refunds.

The excess money was the result of two key events. First, the district anticipated $600,000 in tax rebates. No refunds were given, however. There was more than $1 million in refunds during the same period in the 2005-2006 year. Second, the district anticipated the special education costs to be over $300,000 higher than it ended up costing. The district ended with a total of $3.9 million but some of those funds are earmarked for other areas. Now the reserve includes $2.85 million fulfilling the 3 percent requirement. These numbers are being audited by an inependent company. A complete report should be available Dec. 15. This is the first step in a long road to recovery,? said Superintendent David Miller. In June, the district received a report from the Fiscal Crisis and Management Assistance Team suggesting many changes the district could make to increase its financial health, such as quarterly updates. Many of those changes are incrementally being implemented, McManus said. Making a systemwide change will take time, she added. FCMAT was invited back in February for a health check up,? said Miller. I'm sure we'll have lower blood pressure.?

At the same meeting, the board will the district's goals for the upcoming year. The shorter-than-normal list only includes three goals: continue efforts to reach fiscal health; close the achievement gap while providing high academic achievement for all students; and close Measure D work and begin work on the Measure M projects.

The board meets 7 p.m. Thursday, Sept. 13 at the San Mateo Adult Resource and Technology Center, 789 E. Poplar Ave., San Mateo.

– Written by Fiona