Reserves In 2008, Shaler Area School District reported a balance of $$3,843,438 in an unreserved-designated fund. The unreserved-undesignated fund balance was reported as $3,368,367. In 2010, Shaler Area School District Administration reported a decrease to $3,775,000 in the unreserved-designated fund balance. The unreserved-undesignated fund balance was reported as $3,479,203. By 2013, the Districts reserves were $7,760,746. Pennsylvania 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. By 2013, reserves held by Pennsylvania public school districts, as a whole, had increased to over $3.8 billion.