Bill Text: IA SF2215 | 2015-2016 | 86th General Assembly | Introduced

---

Bill Title: A bill for an act relating to interest earned on school district cash reserves and including applicability provisions.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2016-02-17 - Subcommittee, Kinney, Behn, and Hogg. S.J. 258. [SF2215 Detail]

Download: Iowa-2015-SF2215-Introduced.html

---

Senate File 2215 - Introduced




                                 SENATE FILE       
                                 BY  SMITH

                                      A BILL FOR

  1 An Act relating to interest earned on school district cash
  2    reserves and including applicability provisions.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 5736XS (2) 86
    md/sc

PAG LIN



  1  1    Section 1.  Section 257.34, Code 2016, is amended to read as
  1  2 follows:
  1  3    257.34  Cash reserve information.
  1  4    1.  If a school district receives less state school
  1  5 foundation aid under section 257.1 than is due under that
  1  6 section for a base year and the school district uses funds
  1  7 from its cash reserve during the base year to make up for
  1  8 the amount of state aid not paid, the board of directors of
  1  9 the school district shall include in its general fund budget
  1 10 document information about the amount of the cash reserve used
  1 11 to replace state school foundation aid not paid.
  1 12    2.  If a board of directors of a school district designates
  1 13 the interest earned on cash reserve funds during a budget year
  1 14 as miscellaneous income under section 298A.2, subsection 2, the
  1 15 board of directors of the school district shall include in its
  1 16 general fund budget document information about the amount of
  1 17 interest so designated.
  1 18    Sec. 2.  Section 298A.2, Code 2016, is amended to read as
  1 19 follows:
  1 20    298A.2  General fund.
  1 21    1.  All moneys received by a school corporation from taxes
  1 22 and other sources must be accounted for in the general fund,
  1 23 except moneys required by law to be accounted for in another
  1 24 fund.
  1 25    2.  A school district's cash reserve funds shall be deposited
  1 26 and accounted for in the general fund. Any interest earned on
  1 27 cash reserve funds during a budget year may be added to the
  1 28 district's existing cash reserve amount within the general fund
  1 29 or may be designated by the school board to be miscellaneous
  1 30 income and used for any general fund purpose during any
  1 31 subsequent budget year. Amounts designated as miscellaneous
  1 32 income shall not be included in district cost.
  1 33    Sec. 3.  APPLICABILITY.  This Act applies to school budget
  1 34 years beginning on or after July 1, 2016.
  1 35                           EXPLANATION
  2  1 The inclusion of this explanation does not constitute agreement with
  2  2 the explanation's substance by the members of the general assembly.
  2  3    This bill provides that school districts' cash reserve funds
  2  4 shall be deposited and accounted for in the school district's
  2  5 general fund. The bill also provides that any interest earned
  2  6 on cash reserve funds during a budget year may be added to the
  2  7 district's existing cash reserve amount within the general fund
  2  8 or may be designated by the school board to be miscellaneous
  2  9 income and used for any general fund purpose during any
  2 10 subsequent budget year. However, the amounts designated as
  2 11 miscellaneous income shall not be included in district cost.
  2 12    Under the bill, if a school board designates the interest
  2 13 earned on cash reserve funds during a budget year as
  2 14 miscellaneous income, the board of directors of the school
  2 15 district shall include in its general fund budget document
  2 16 information about the amount of interest so designated.
  2 17    A school district's miscellaneous income may affect the
  2 18 district's amount of authorized expenditures. Under current
  2 19 Code section 257.7, the authorized expenditures of a school
  2 20 district during a base year shall not exceed the lesser of the
  2 21 certified budget for that year plus any allowable amendments,
  2 22 or the authorized budget which is the sum of the combined
  2 23 district cost for that year, the actual miscellaneous income
  2 24 received for that year, and the actual unspent balance from the
  2 25 preceding year.
  2 26    The bill applies to school budget years beginning on or after
  2 27 July 1, 2016.
       LSB 5736XS (2) 86
       md/sc