reserves in 2008, the district reported a balance of $1,825,000 in its unreserved-designated fund. the unreserved-undesignated fund balance was reported as $3,572,509. in 2010, solanco school district's administration reported an increase to $3,255,023 in the unreserved-undesignated fund balance. the district reported $1,825,000 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. by law the state limits the total unreserved-undesignated fund balance at 8% of the annual budget for school districts that have budgets over $19 million a year. according to the pennsylvania department of education, from 2003 to 2010, as a whole, pennsylvania school districts amassed nearly $3 billion in reserved funds.