What is free cash?

Free Cash (Also Budgetary Fund Balance) Funds remaining from the operations of the previous fiscal year which are certified by Department of Revenue's director of accounts as available for appropriation. Remaining funds include unexpended free cash from the previous year, receipts in excess of estimates shown on the tax recapitulation sheet and unspent amounts in budget line-items. Unpaid property taxes and certain deficits reduce the amount of remaining funds which can be certified as free cash. (From the Association of Town Finance Committees)