What must happen to the total accumulated absences before they can be appropriated in the budget?

In municipal budgeting, accumulated absences refer to the total liabilities that a municipality has for employee leave benefits that have not yet been taken. For these absences to be legitimately appropriated within the budget, they need to be managed within the limits of reserves set aside to cover such liabilities.

Having a reserve in a trust fund means that there are funds specifically earmarked to pay for accumulated absences when they are eventually utilized. If the total accumulated absences exceed the value of these reserves, then the municipality may not have sufficient funding to cover the expenses when they arise. Therefore, it is crucial that total accumulated absences do not exceed the reserves held in the trust fund to ensure financial stability and compliance with budgeting practices.

This understanding reflects an important aspect of responsible financial management within municipal government, where allocating appropriate reserves helps manage future liabilities effectively. The other options do not align with this principle, as they either suggest contrary actions or confuse the relationship between liabilities and available reserves.