Bill Text: MS SB2005 | 2013 | Regular Session | Introduced
Bill Title: School district expenditures; require school boards to adopt an annual balanced budget.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2013-02-05 - Died In Committee [SB2005 Detail]
Download: Mississippi-2013-SB2005-Introduced.html
MISSISSIPPI LEGISLATURE
2013 Regular Session
To: Education
By: Senator(s) Smith
Senate Bill 2005
AN ACT TO AMEND SECTIONS 37‑-61‑-9
AND 37‑-61‑-19,
MISSISSIPPI CODE OF 1972, TO REQUIRE SCHOOL DISTRICTS TO ADOPT AN ANNUAL
BALANCED BUDGET TO BE SUBMITTED TO THE LEVYING AUTHORITY AND TO THE STATE BOARD
OF EDUCATION AND TO CLARIFY THAT SCHOOL DISTRICT BUDGETS SHALL LIMIT FUND
EXPENDITURES TO THE REVENUE RESOURCES AVAILABLE TO THAT FUND WHICH SHALL NOT
INCLUDE TRANSFERS FROM OTHER FUND BALANCES; TO AMEND SECTION 37‑-61‑-21,
MISSISSIPPI CODE OF 1972, TO PROVIDE THAT NO SCHOOL DISTRICT FUND SHALL HAVE A
NEGATIVE BALANCE AT THE END OF THE SCHOOL FISCAL YEAR; AND FOR RELATED
PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section
37‑-61‑-9,
Mississippi Code of 1972, is amended as follows:
37‑-61‑-9.
(1) On or before the fifteenth day of August of each year, the local school
board of each school district, with the assistance of the superintendent of
schools, shall prepare and file with the levying authority for the
school district, as defined in Section 37‑-57‑-1,
at least two (2) copies of a balanced budget of estimated expenditures
for the support, maintenance and operation of the public schools of the school
district for the fiscal year commencing on July 1 of such year. Such budget
shall be prepared on forms prescribed and provided by the State Auditor and
shall contain such information as the State Auditor may require. In the
preparation of the annual school district budget, the local school board shall
be required to limit the expenditure of each school fund during the fiscal year
to the resources available to that particular fund which shall not include
transfers from other fund balances.
(2) In addition, on or before the fifteenth day of August of each year, the local school board of each school district, with the assistance of the superintendent of schools, shall prepare and file with the State Department of Education such budgetary information as the State Board of Education may require. The State Board of Education shall prescribe and provide forms to each school district for this purpose.
(3) Prior to the adoption of a budget pursuant to this section, the school board of each school district shall hold at least one (1) public hearing to provide the general public with an opportunity to comment on the taxing and spending plan incorporated in the proposed budget. The public hearing shall be held at least one (1) week prior to the adoption of the budget with advance notice. After final adoption of the budget, a synopsis of such budget in a form prescribed by the State Department of Audit shall be published in a newspaper having general circulation in the school district on a date different from the date on which the county or any municipality therein may publish its budget.
(4) There shall be imposed limitations on budgeted expenditures for certain administration costs, as defined hereinafter, in an amount not greater than One Hundred Fifty Thousand Dollars ($150,000.00) plus four percent (4%) of the expenditures of all school districts each year. For purposes of this subsection, "administration costs" shall be defined as expenditures for salaries and fringe benefits paid for central administration costs from all sources of revenue in the following expenditure functions as defined in the MISSISSIPPI PUBLIC SCHOOL DISTRICT FINANCIAL ACCOUNTING MANUAL:
2300 = Support
Services ‑-
General Administration
2310 = Board of Education Services
2320 = Executive Administration Services
2330 = Special Area Administration Services
2500 = Business Services
2510 = Fiscal Services
2520 = Purchasing Services
2530 = Warehousing and Distributing Services
2540 = Printing, Publishing and Duplicating Services
2590 = Other Support
Services ‑-
Business
Any costs classified as
"administration costs" for purposes of this subsection which can be
demonstrated by the local school district to be an expenditure that results in
a net cost savings to the district that may otherwise require budget
expenditures for functions not covered under the definition of administration
costs herein may be excluded from the limitations imposed herein. The local
school board shall make a specific finding of such costs and spread such
finding upon its minutes, which shall be subject to the approval of the Office
of Educational Accountability of the State Department of Education. Any school
district required to make expenditure cuts, as a result of application of this
subsection, shall not be required to reduce such expenditures more than twenty‑-five
percent (25%) in any year in order to comply with this mandate.
The State Auditor shall ensure that functions in all expenditure categories to which this administrative limitation applies shall be properly classified.
This section shall not apply
to central administration with five (5) or less full‑-time
employees, or to those school districts which can substantiate that comparable
reductions have occurred in administrative costs for the five‑-year
period immediately prior to school year 1993‑-1994.
In the event the application of this section may jeopardize the fiscal
integrity or operations of the school district, have an adverse impact on the
ability of the district to deliver educational services, or otherwise restrict
the district from achieving or maintaining a quality education program, the
State Board of Education shall be authorized to exempt the application of this
section to such school district pursuant to rules and regulations of the State
Board of Education consistent with the intent of this section.
SECTION 2. Section
37‑-61‑-19,
Mississippi Code of 1972, is amended as follows:
37‑-61‑-19.
It shall be the duty of the superintendents of schools and the school boards of
all school districts to limit the expenditure of school funds during the fiscal
year to the resources available. "Resources available" shall not
include the transfer of fund balances from other school funds. It shall be
unlawful for any school district to budget expenditures from a fund in excess
of the resources available within that fund. Furthermore, it shall be unlawful
for any contract to be entered into or any obligation incurred or expenditure
made in excess of the resources available for such fiscal year. Any member of
the school board, superintendent of schools, or other school official, who
shall knowingly enter into any contract, incur any obligation, or make any
expenditure in excess of the amount available for the fiscal year shall be
personally liable for the amount of such excess. However, no school board
member, superintendent or other school official shall be personally liable (a)
in the event of any reduction in adequate education program payments by action
of the Governor acting through the Department of Finance and Administration, or
(b) for claims, damages, awards or judgments, on account of any wrongful or
tortious act or omission or breach of implied term or condition of any warranty
or contract; provided, however, that the foregoing immunity provisions shall
not be a defense in cases of fraud, criminal action or an intentional breach of
fiduciary obligations imposed by statute.
SECTION 3. Section
37‑-61‑-21,
Mississippi Code of 1972, is amended as follows:
37‑-61‑-21.
(1) If it should appear to the superintendent of schools or the school board
of any school district that the amounts to be received from state appropriations,
taxation or any other source will be more than the amount estimated in the
budget filed and approved, or if it should appear that such amounts shall be
less than the amount estimated, the school board of the school district, with
assistance from the superintendent, may revise the budget at any time during
the fiscal year by increasing or decreasing the fund budget, in proportion to
the increase or decrease in the estimated amounts. If it should appear to the
superintendent of schools or the school board of a school district that some
function of the budget as filed is in excess of the requirement of that
function and that the entire amount budgeted for such function will not be
needed for expenditures therefor during the fiscal year, the school board of
the school district, with assistance from the superintendent, may transfer
resources to and from functions and funds within the budget when and where
needed; however, no such transfer shall be made from fund to fund or from
function to function which will result in the expenditure of any money for any
purpose different from that for which the money was appropriated, allotted,
collected or otherwise made available or for a purpose which is not authorized
by law. No revision of any budget under the provisions hereof shall be made
which will permit a fund expenditure in excess of the resources available for
such purpose. The revised portions of the budgets shall be incorporated in the
minutes of the school board by spreading them on the minutes or by attaching
them as an addendum. Final budget revisions, pertinent to a fiscal year, shall
be approved on or before the date set by the State Board of Education for the
school district to submit its financial information for that fiscal year,
and no school district fund shall have a negative balance at the end of the
fiscal year.
(2) On or before the
fifteenth day of October of each year, the local school board of each school
district, with the assistance of the school district superintendent, shall prepare
and file with the State Department of Education year‑-end
financial statements and any other budgetary information that the State Board
of Education may require. The State Board of Education shall prescribe and
provide forms to each school district for this purpose. No additional changes
may be made to the financial statements after October 15 of each year.
SECTION 4. This act shall take effect and be in force from and after July 1, 2013.