By Richard Bammer
Trustee Michael Kitzes said that, under the proposition, limiting a maximum reserve to 6 percent may harm small districts, leaving them in financial straits.
For a small district, such as Dixon Unified in Solano County, 10 percent of the general fund, under normal circumstances, would be a prudent reserve, because “they couldnt take any kind of economic jolt,” he said.
If Proposition 2 passes, money would go into a new state reserve for K-12 schools and community colleges in some years when capital gains revenues are strong, according to wording in the California Voter Information Guide. It would also set, in some years, maximum reserves that school districts can keep at the local level in some years.