Health & Fitness
"Bond Reserves Have Been Spent Down"
A review of reserve charge logs shows that approximately $24M was recorded in reserve charges, but instead of acknowledging depletion of the reserves, the Administration rewrote the budget. The project expense budgets were boosted by $24M and the reserve budget was adjusted downward by the same amount; $24M. Under the original program budget, a reserve balance of $28M was established to absorb unanticipated expenses as the $601M consolidated Prop H and Prop U program was launched in 2008. In a recent review of budgets, it was discovered that the reserve account was nearly spent through. As of March, the reserve account had been depleted by $24M. The program is only through $200M out of the anticipated $500M in the program. The remaining 300M in spending will go forward with around only $2M of the original reserve for unanticipated expenses.