Reserves In 2010, Brownsville Area School District reported zero in an unreserved-designated fund balance. The unreserved-undesignated fund balance was reported as $968,285.00. In 2012, Brownsville Area School District Administration reported an increase to $2,727,866 in the unreserved-undesignated fund balance. The District also reported zero in its unreserved-designated fund in 2010. 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.