California sets 5% reserve standard for charter school budgets

During a recent meeting on March 11, 2025, the Kern County Office of Education addressed important financial guidelines for charter schools, specifically regarding reserve percentages. The discussion highlighted that the state of California expects charter schools, like Realms Charter School, to maintain a reserve of at least 5%. This figure is considered a robust standard, as it represents the minimum threshold required for the approval or conditional approval of school district budgets by the office.

Jonathan Medina, a key speaker at the meeting, confirmed that while some local educational agencies may operate with a 3% reserve, the 5% reserve is the baseline expectation set by the state. This standard is crucial for ensuring financial stability and accountability within charter schools, providing a safety net for unexpected expenses or economic downturns.

The meeting underscored the importance of these financial reserves in maintaining the operational integrity of educational institutions. As charter schools continue to play a significant role in California's education system, adherence to these guidelines will be essential for their sustainability and success. The Kern County Office of Education remains committed to supporting schools in meeting these financial standards, ensuring that they can effectively serve their communities.