The Pierce College Associated Student Organization (ASO) has over $500,000 in their reserves.
This is more than triple their budget for this fiscal year, which is about $150,000, according to ASO Treasurer Fernando Aquino.
“The thing about the reserve is that once it goes there, unless the ASO is planning a big event, chances are we’re not going to see that money,” said Aquino.
ASO Faculty Advisor Brad Sanez said that the reserve is there in case of emergency, and that the Pierce College Academic Senate has to vote on any proposed use of these funds.
The money in reserve is invested in certificates of deposit (CDs), which are low-risk and long-term investments provided by banks, said Bruce Rosky, associate vice president of Administrative Services. CD’s are one of the best investments for young adults too, as the interest rate is higher than a typical savings account because you have to agree to keep your money with the bank for an extended period of time.
“The investment accounts that we have are for ASO,” said Rosky. “It’s nice to keep them there because it does generate additional revenue.”
“The challenge that the ASO has is the legacy that they leave in the future,” said Rosky. “Should they choose to deplete their investment accounts then the future generation of ASOs will not be able to benefit either from the interest that it does bear or the ability to rely on that for any other critical things.”
