Summary of the Introduced Bill

HB 333 -- Transfers of School District Funds

Co-Sponsors:  Merideth, Myers, Hunter, Wallace

Currently, school districts must have a levy in the capital
projects fund sufficient to cover any lease purchase made after
January 1, 1997, in order to spend funds on such a purchase.
This bill removes that requirement.  Current law permits
transfers from the incidental fund to the capital projects fund
in amounts not to exceed 9% of the district's line 1 entitlement
for state aid; the bill adds a requirement that amounts spent for
classroom instructional capital outlay be subtracted from the
entitlement amount and requires identification in a school board
resolution of those capital projects that are funded directly by
the district.

Transfers from the incidental fund to the capital project fund
that are permitted before the transfers made under the conditions
specified in subsection 4 (non-grandfathered transfers) currently
require a school district to meet the minimum operating levy
requirement; this requirement is deleted and replaced by a
requirement that districts must be in compliance with
certificated salary percentage requirements or have paid any
penalties for their violation as of the second preceding year.

The bill also creates a new set of conditions under which
transfers may be made to decrease interest costs on lease
purchases.  Among the conditions are a cash reserve in operating
funds of at least 15% of expenditures, an operating levy of at
least $2.75 during the transfer year and each of the two previous
years, demonstrated salary compliance, and equalling or exceeding
the average teacher statewide or senatorial district salary for
three consecutive years prior to the transfer year.

Copyright (c) Missouri House of Representatives

Missouri House of Representatives
Last Updated July 25, 2003 at 10:11 am