2126  CONTINGENCY RESERVE

The contingency reserve is used to subsidize budgeted campus housing 
operational deficits.  During the preparation of the Special Funds Program 
Maintenance Proposal, Auxiliary and Business Services establishes the 
contingency reserve at a level equal to the sum of the projected campus 
operational deficits.  Each campus' contribution to the contingency reserve is 
based on the actual campus prior year revenue as a percent of the total prior 
year housing system revenue.  Contingency reserve funds in excess of those 
required to cover the actual campus deficits are transferred to systemwide 
reserves.