Glossary

Fund Balance

A plain-English definition of fund balance and why it is not always free money.

Last updated: 2026-05-19

Independent and unofficial. Source-linked term.

Fund balance is money remaining in a fund after accounting for revenues, transfers, spending, and obligations.

It can be important for reserves, cash flow, or restricted purposes. A fund balance is not automatically free money for any service; the official budget needs to show whether it is available and how it can be used.

Why It Matters

Fund balance affects reserves, budget stability, and whether one-time resources are available. It should be read with the fund name and any restrictions.

Common Misunderstanding

Seeing a balance does not prove the county can spend that money anywhere. Some balances are restricted by law, policy, or the purpose of the fund.

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