Reserve for Unemployment Insurance

Purpose:

To pay the cost of reimbursement to the New York State Unemployment Insurance Fund for payments made to claimants where the Greater Johnstown School District uses the benefit reimbursement method, meaning the District reimburses New York State (NYS) for actual unemployment claims incurred. The District does not pay NYS a fixed premium for unemployment coverage.

Legal Reference:

General Municipal Law, Article 2 §6-m

Account Code:

A815

Source of Funds:

Funded by budgetary appropriations, or other funds that may be legally appropriated by board resolution. Can also be funded by transfers from other appropriate reserves

Use of Reserve:

Funds from this reserve are used to pay unemployment claims and to offset unemployment expenditures exceeding the budgeted amount.

Voter approval is not needed to expend funds

Excess funds may be transferred to other reserves authorized by General Municipal Law and Education Law sixty days before the end of the fiscal year

Creation:

This reserve was created by BOE resolution on June 30, 2009.

Funding Level:

This reserve was funded entirely from excess fund balance when it was created. It was funded in anticipation of an increased number of staff reductions. The initial funding was an amount sufficient to pay full unemployment insurance at the maximum rate for approximately nine individuals.

Ideal Balance:

Approximately 3% of payroll. ($12,200,000 x 0.03 = $366,000)

Planned Use:

Use funds to pay annual unemployment expenses beginning in 2022-23.

Balance at June 30, 2021:

$366,500