Reserve for Liability Claims


To pay for liability claims incurred by the District. The total amount of the Liability Reserve is limited to 3% of the annual budget or $15,000, whichever is greater. (Education Law, §1709, Subdivision 8-c).

Legal Reference:

Education Law, §1709, Subdivision 8-c.

Account Code:


Source of Funds:

Budgetary appropriation or other funds that may be legally appropriated.

Funding methods may include from excess fund balance, or other funds that may be legally appropriated or transfers from other reserves by BOE resolution

Use of Reserve:

Funds may be expended per BOE resolution. Voter approval is not needed to expend funds.


This reserve was created by BOE resolution on August 15, 2007, effective June 30, 2007

Funding Level:

This reserve was initially funded at a level of $25,000.

Ideal Balance:

The balance cannot exceed 3% of the budget.

Planned Use:

Balance at June 30, 2021: