Policy Number


Policy Category

Budget and Finance

Policy Title

Stabilization Reserve Fund

The board may require the president to establish a separate reserve fund (as described in ORS 341.321 and ORS 294.525) for the purpose of providing short-term stabilization in anticipation of possible shortfalls in revenue.

A stabilization reserve fund may be established under one or more of the following circumstances:

  • State budget appropriations for community colleges are not approved by the time the college budget is approved and adopted.
  • A situation exists where significant changes in enrollment are possible but not reasonably predictable.
  • When any major revenue source has a reasonable possibility of decreasing after the college budget is approved and adopted.
  • When any operating expenditure that is beyond the control of the college could reasonably be expected to increase after the college budget is approved and adopted.
  • Any other situation in which the board determines that there is a reasonable expectation that major shifts in revenue or expenditures could occur during the budget year.

Stabilization reserve levels:

  • Minimum reserve levels shall be at the discretion of the board under advice from the president.
  • Maximum reserve levels shall be no more than the maximum reasonably estimated shortfall at the time of the adoption of the budget.

Stabilization reserves will be reviewed annually as part of the budget development process. The stabilization reserve fund shall be closed out when the board determines that the precipitating threat to revenues and/or expenditures no longer exists. As long as the conditions exist that caused the fund to be established, the funds shall be kept in reserve for the purpose intended. If and when the fund is closed out, any remaining balance shall be released for use as a resource in the General Fund.

Adopted:   January 14, 2004
Reviewed: January 10, 2007
Revised:   October 19, 2009
Reviewed: October 14, 2014