Projected payments to your escrow account and disbursements from your escrow account along with the requirement of a cushion were programmed into the accounting system. The system then calculated the starting balance necessary to assure the balance in your escrow account would never go below the two-month cushion (target balance) during the year. If you look at the box at the top of the disclosure it will indicate the figure that is the target balance. Now look at the projections for next year in the right column “Required Balance” and you will see that same figure (target balance) at some point during the next fiscal year from August through July. Using any other starting balance will not allow for this to happen and your account at some point will drop below the required cushion. It should be noted that we are only limiting the minimum balance; there is no maximum balance during the year so there will be times that your balance is well above the target balance.