Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The impact of state-imposed fund balance limits on school districts: Evidence from New York state

The impact of state-imposed fund balance limits on school districts: Evidence from New York state This paper examines the role of state-imposed fund balance limitation on school district budgetary behavior in New York State between 1997 and 2004. The findings suggest that imperfect state limitations may lead to imperfect results. Compliance among New York state school districts with the two percent limit in the examined period is low. While the constraint does not limit unreserved unappropriated fund balances to two percent, it does influence the way districts form estimates of revenues and expenditures. Recent changes in the limitation (to four percent) do not fully address the flaws of the original rule (lax enforcement, applied on the budgeted level, and generous rules on reserves), thus no significant change in budget behavior is expected. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Public Budgeting, Accounting & Financial Management Emerald Publishing

The impact of state-imposed fund balance limits on school districts: Evidence from New York state

Download PDF
22 pages

Loading next page...
 
/lp/emerald-publishing/the-impact-of-state-imposed-fund-balance-limits-on-school-districts-Nu4fbl9VAD
Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1096-3367
DOI
10.1108/JPBAFM-23-02-2011-B002
Publisher site
See Article on Publisher Site

Abstract

This paper examines the role of state-imposed fund balance limitation on school district budgetary behavior in New York State between 1997 and 2004. The findings suggest that imperfect state limitations may lead to imperfect results. Compliance among New York state school districts with the two percent limit in the examined period is low. While the constraint does not limit unreserved unappropriated fund balances to two percent, it does influence the way districts form estimates of revenues and expenditures. Recent changes in the limitation (to four percent) do not fully address the flaws of the original rule (lax enforcement, applied on the budgeted level, and generous rules on reserves), thus no significant change in budget behavior is expected.

Journal

Journal of Public Budgeting, Accounting & Financial Management – Emerald Publishing

Published: Mar 1, 2011

There are no references for this article.