Iowa-2015-SF2215-Introduced
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:
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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.
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