The Fresno Unified school board got some good financial news on Wednesday night that will allow the district to keep all its teachers and hire new ones to handle a decrease in class sizes next year.

The district will be able to meet its financial obligations this year and expects to end the fiscal year on June 30 with $66.9 million in its reserve.

"We are in a better financial position than most of our peers up and down the state," said Ruth Quinto, the district's chief financial officer.

Quinto presented the school board with the district's second interim financial report for approval. The report showed a healthy reserve level and growth over the next three years even while the district's expenses are projected to increase.

Proposition 30, passed by state voters in November, and Gov. Jerry Brown's proposed state budget helped the district maintain its finances, Quinto said.

She warned the board, however, that the report does not take into account any cuts in federal funding or programs.

"A weakened economy can change the level of resources received here at Fresno Unified," Quinto said.

The district plans to reduce average class sizes by one student in fourth through twelfth grades next year and hire teachers to accommodate that change.

In grades four through six, there will be an average of 30 students to a teacher, Quinto said. For seventh and eighth grades there will be an average of 29 students per teacher and in high school classes, 31 students per teacher. The board voted to approve the report. Trustee Michelle Asadoorian was absent.