HCS SCS SB 686 -- TRANSFERS OF SCHOOL FUNDS

SPONSOR:  Russell (Cunningham, 86)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Education
by a vote of 23 to 1.

This substitute allows school districts to transfer unrestricted
funds from the capital projects fund to the incidental fund in
any year in which that year's June 30 combined incidental and
teachers funds' unrestricted balance is less than 10% of the
combined incidental and teachers funds' expenditures without a
transfer.  The substitute also permits one-time transfers from
the incidental to the capital projects funds for specific
projects for two districts and provides a mechanism for transfer
of moneys between funds for certain districts that have placed
qualified zone academy bond proceeds in the capital project funds
without setting a levy.

The substitute contains an emergency clause.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the substitute will give some
flexibility to districts that are facing hard economic times by
permitting a district with a low operating fund balance to
transfer unencumbered capital funds to an operating account
balance.

Testifying for the bill were Senator Russell; Missouri School
Boards Association; Missouri Council of School Administrators;
Missouri State Teachers Association; and Missouri National
Education Association.

OPPONENTS:  There was no opposition voiced to the committee.

Becky DeNeve, Senior Legislative Analyst

Missouri House of Representatives
Last Updated July 25, 2003 at 10:13 am