HCS HB 937 -- SCHOOL DISTRICT CAPITAL PROJECT FUND TRANSFERS

SPONSOR:  Icet

COMMITTEE ACTION:  Voted "do pass" by the Committee on Budget by
a vote of 24 to 0.

This substitute waives the limitations on the transfer of moneys
from a school district's incidental fund to its capital projects
fund for the 2009-2010 and 2010-2011 school years under certain
circumstances.  If a school district receives federal economic
stimulus funds from the American Recovery and Reinvestment Act of
2009 and the school board approves a resolution identifying the
capital projects and the expenditure dates on which the funds
will be spent, the district may exceed the transfer limit that is
based on 7% of the state adequacy target for the funds received
by the act.

FISCAL NOTE:  No impact on state funds in FY 2010, FY 2011, and
FY 2012.

PROPONENTS:  Supporters say that schools have four funds:
teacher fund, debt fund, incidental fund, and capital fund.  The
federal stimulus money will be deposited into the incidental
fund.  The bill will allow a district flexibility to move money
from the incidental fund to the capital fund if there are
requirements from the federal government to make capital
expenditures.

Testifying for the bill were Representative Dieckhaus; Department
of Elementary and Secondary Education; Missouri State Teachers
Association; and Cooperating School Districts of Greater Kansas
City.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:25 am