Reserves In 2011, Armstrong School District reported having over $6.18 million in reserves. Some of that was used to balance the 2011–12 school year budget. The District's business manager estimated having an $5.1 million fund balance in June 2012. Armstrong School District administration reported an increase to $4,962,995 in the unreserved-undesignated fund balance. The District also reported $6,592,217 in its reserve fund in 2012. Pennsylvania public school district reserve funds are divided into two categories – designated and undesignated. The undesignated funds are not committed to any planned project. Designated funds and any other funds, such as capital reserves, are allocated to specific projects. School districts are required by state law to keep 5 percent of their annual spending in the undesignated reserve funds to preserve bond ratings. According to the Pennsylvania Department of Education, from 2003 to 2010, as a whole, Pennsylvania school districts amassed nearly $3 billion in reserved funds. In 2005, the total reserve funds held by Pennsylvania public school districts was $1.9 billion. By 2013, reserves held by Pennsylvania public school districts, as a whole, had increased to over $3.8 billion. In 2014, Armstrong School District reported its reserves at $2,170,247.