The Legislature actually did some good this past spring. Many of these new additions or changes are very beneficial to your office. Here is a couple of bills and what they mean:
Senate Bill No. 531
This was basically an amendment to our current state aid formula law. The area it addressed was in the area of allowable fund balance (or carryover, if you prefer). The bill increased the percentage amounts that are allowed to be carried over by some of the larger school districts. The changes are as follows:
|
Total General Fund Collections For Ending Fiscal Year |
Previous Allowable Amount |
New Allowable Amount |
|
Less than $1,000,000 $1,000,000 – $2,999,999 $3,000,000 – $3,999,999 $4,000,000 – $4,999,999 $5,000,000 – $5,999,999 $6,000,000 – $7,999,999 $8,000,000 – $9,999,999 $10,000,000 or more |
40% 35% 30% 25% 20% 16% 16% 8-15% |
40% 35% 30% 25% 20% 18% 16% 14% |
Also, the bill states that the carryover penalty (reduction of state aid) for exceeding these amounts must be exceeded for two consecutive years before it is assessed. That’s great news for you districts burdened with a large fund balance.
Senate Bill No. 668
This was the main ‘public finance’ bill passed this spring. It covers several categories and amendments regarding school business. We recommend you download a copy of this bill and read the detail of each section. A summary of each section is as follows:
- Section 1 – Requires treasurers and encumbrance clerks to obtain 12 hours of instruction in their duties. These 12 hours must be obtained by July 1, 2007. After that, each encumbrance clerk and treasurer must obtain an additional 12 hours of continuing education every three years.
- Section 2 – A consolidation of all the non-collusion (or non-kickback) affidavit laws. It basically makes it clear that all invoices exceeding $25,000 shall have a non-kickback affidavit. This applies to all appropriated fund and activity funds.
- Section 3 – Requires that roofs placed over existing roof structures, which cost more than $25,000 be bid under the Public Competitive Bidding Act.
- Section 4 – Makes reimbursement policy for school board members and school board members elect attending required training courses consistent with local board travel reimbursement policy. Basically eliminated the ‘per diem’ amounts that were in current law for school board travel.
- Section 5 – Expands the type of training programs for which a school board member may be reimbursed.
- Section 6 – Moves some of the language for school board to purchase insurance, with no real changes. This section also simplifies and clarifies the authority of the board to establish travel reimbursement policies, and makes it consistent with other statutory references to travel.
- Section 7 – Changes the words “per diem” to “stipend”.
- Section 8 – Allows activity fund surety bonds to be paid from the general fund.
- Section 9 – Eliminates the unnecessary requirement for schools with permanent millage to adopt and publish a preliminary estimate of needs. This is good news, since this document was basically worthless with permanent millage, plus no more expense of having it published.
- Section 10 – Eliminates attachment of finance/purchasing procedures to job titles, giving schools greater flexibility. It also allows for payment of encumbrances by check, and allows the use of facsimile signatures.
- Section 11 – School income and expenditures reporting requirements. This is the OCAS data that must be transmitted to the State Dept. of Education each fiscal year by September 1.
- Section 12 – Simplifies and clarifies when a school district may provide transportation other than to and from school, making it a local district policy.
- Section 13 – Clarifies how a school may purchase used transportation equipment from a vendor.
- The remainder of the bill is mainly repeals and auditor requirement information.
Special thanks is given to Jim McGoodwin from the State Auditors and Inspector’s Office and the School Task Force Committee that met all year and recommended these new laws and amendments.
