As preliminary talks get underway for the 2023-2024 Beloit School District budget, the district is facing a depleting reserve fund.

Executive Director of Business Services Bob Chady says according to a preliminary budget, the district is looking at “rainy day” fund balance of just over $7.6 million, down from more than $17.6 million in 2016.

Chady says if the reserve fund balance ever hits zero, the district essentially would become bankrupt and would have no money to pay for expenses and obligations.

Chady says the continued use of “rainy day” funds also impacts borrowing, as lenders look at the use of reserve funds and could increase interest rates as the fund balance goes down.

The district hopes to finalize the 2023-2024 budget by the end of October.