Districts in financial stress, factors determining--notification todistrict school board, contents--board to prepare budget and educationplan, contents.
161.520. 1. By October 1, 1992, and by each October first thereafter,the department of elementary and secondary education shall identify any schooldistrict experiencing financial stress. The commissioner of elementary andsecondary education or his designee shall review the information submitted onthe report required by section 162.821, RSMo, to identify school districtsexperiencing financial stress. Further, the commissioner of elementary andsecondary education shall be authorized to obtain such additional informationfrom public school districts as may be necessary to determine school districtsexperiencing financial stress. Annually, a listing of school districtsidentified as experiencing financial stress according to the provisions ofthis section shall be provided to the governor, speaker of the house andpresident pro tem of the senate by the commissioner of elementary andsecondary education. For the purposes of this section, a school districtshall be identified as experiencing financial stress if it:
(1) Has a negative balance in its teachers' or incidental funds at theend of the most recently completed fiscal year and is not in compliance withthe provisions of section 165.021, RSMo;
(2) Has a combined balance remaining in teachers' and incidental fundsof less than three percent at the end of the most recently completed fiscalyear of the amount expended from such funds during the previous fiscal year;or
(3) Did tax anticipation borrowing during the most recently completedfiscal year for the period February first through June thirtieth to meetexpenditures of the district because of insufficient fund balances orreserves.
2. For the purposes of this section, a school district may be identifiedas experiencing financial stress if three or more of the following conditionsexist:
(1) For any of the district's funds for the most recently completedfiscal year, expenditures exceeded receipts because of costs to the districtthat are recurring;
(2) Has declining fund balances while the district is receiving stateaid under the provisions of section 163.172, RSMo, for the sole purpose ofincreasing salaries of teachers of the district;
(3) Has engaged in tax anticipation borrowing to meet obligatedexpenditures for the period October first to December thirty-first of the mostrecently completed fiscal year, and interest expense to the district exceededinterest revenue on district funds;
(4) For the most recently completed three tax years, there is a declinein the collection rate for current and delinquent taxes paid to the district;
(5) For the most recently completed three fiscal years, there is adeclining trend of student enrollment without a proportionate decline in thenumber of professional staff, except in such districts where professionalstaff have been reassigned to reduce pupil teacher ratios in the elementarygrades;
(6) For the most recently completed three fiscal years, there is astatic or an increasing trend of student enrollment while the number ofprofessional staff has been reduced;
(7) For the most recently completed three fiscal years, salaries paid tononadministrative staff have not increased;
(8) For the most recently completed three fiscal years, administrativecosts in the district have increased as measured by the percentage of totaldistrict expenditures; or
(9) Has a declining trend or recent significant loss of assessedvaluation.
3. The department of elementary and secondary education shall notify byNovember first the board of education and chief operating officer of anyschool district identified as experiencing financial stress according to theprovisions of this section. The notification shall be accompanied by a copyof the provisions contained in sections 161.520 to 161.529. Upon receivingthe notification, the board of education shall develop, or cause to havedeveloped, and shall approve a budget and education plan on forms provided bythe department of elementary and secondary education. The budget andeducation plan shall be submitted to the department of elementary andsecondary education, signed by the officers of the board of education, withinforty-five calendar days of notification that the district has been identifiedas experiencing financial stress. Minimally, the budget and education plansubmitted by the board of education shall:
(1) Give assurances that adequate educational services to students ofthe district will continue uninterrupted for the remainder of the currentschool year, and that the district can provide a minimum school term requiredby section 163.021, RSMo;
(2) Outline a procedure to be followed by the district to report todistrict patrons about the financial condition of the district;
(3) Outline a procedure to be followed by the district to report todistrict patrons about the impact of the financial condition of the districton the educational services provided to students; and
(4) Detail the expenditure reduction measures, revenue increases orother actions to be taken by the school district to address its condition offinancial stress. If requested, the department of elementary and secondary education shallassist a board of education in the development of a budget and education planrequired by this section. Upon receipt and following review of any budget andeducation plan, the commissioner of elementary and secondary education or hisdesignee may make suggestions to improve the plan. Nothing in the law shallexempt a board of education from submitting a budget and education plan to thedepartment of elementary and secondary education according to the provisionsof this section following each such notification that a district has beenidentified as experiencing financial stress; except that, the commissioner ofelementary and secondary education may permit a board of education to makeamendments to or update a budget and education plan previously submitted tothe department of elementary and secondary education.
Districts in financial stress, factors determining--notification todistrict school board, contents--board to prepare budget and educationplan, contents.
161.520. 1. By October 1, 1992, and by each October first thereafter,the department of elementary and secondary education shall identify any schooldistrict experiencing financial stress. The commissioner of elementary andsecondary education or his designee shall review the information submitted onthe report required by section 162.821, RSMo, to identify school districtsexperiencing financial stress. Further, the commissioner of elementary andsecondary education shall be authorized to obtain such additional informationfrom public school districts as may be necessary to determine school districtsexperiencing financial stress. Annually, a listing of school districtsidentified as experiencing financial stress according to the provisions ofthis section shall be provided to the governor, speaker of the house andpresident pro tem of the senate by the commissioner of elementary andsecondary education. For the purposes of this section, a school districtshall be identified as experiencing financial stress if it:
(1) Has a negative balance in its teachers' or incidental funds at theend of the most recently completed fiscal year and is not in compliance withthe provisions of section 165.021, RSMo;
(2) Has a combined balance remaining in teachers' and incidental fundsof less than three percent at the end of the most recently completed fiscalyear of the amount expended from such funds during the previous fiscal year;or
(3) Did tax anticipation borrowing during the most recently completedfiscal year for the period February first through June thirtieth to meetexpenditures of the district because of insufficient fund balances orreserves.
2. For the purposes of this section, a school district may be identifiedas experiencing financial stress if three or more of the following conditionsexist:
(1) For any of the district's funds for the most recently completedfiscal year, expenditures exceeded receipts because of costs to the districtthat are recurring;
(2) Has declining fund balances while the district is receiving stateaid under the provisions of section 163.172, RSMo, for the sole purpose ofincreasing salaries of teachers of the district;
(3) Has engaged in tax anticipation borrowing to meet obligatedexpenditures for the period October first to December thirty-first of the mostrecently completed fiscal year, and interest expense to the district exceededinterest revenue on district funds;
(4) For the most recently completed three tax years, there is a declinein the collection rate for current and delinquent taxes paid to the district;
(5) For the most recently completed three fiscal years, there is adeclining trend of student enrollment without a proportionate decline in thenumber of professional staff, except in such districts where professionalstaff have been reassigned to reduce pupil teacher ratios in the elementarygrades;
(6) For the most recently completed three fiscal years, there is astatic or an increasing trend of student enrollment while the number ofprofessional staff has been reduced;
(7) For the most recently completed three fiscal years, salaries paid tononadministrative staff have not increased;
(8) For the most recently completed three fiscal years, administrativecosts in the district have increased as measured by the percentage of totaldistrict expenditures; or
(9) Has a declining trend or recent significant loss of assessedvaluation.
3. The department of elementary and secondary education shall notify byNovember first the board of education and chief operating officer of anyschool district identified as experiencing financial stress according to theprovisions of this section. The notification shall be accompanied by a copyof the provisions contained in sections 161.520 to 161.529. Upon receivingthe notification, the board of education shall develop, or cause to havedeveloped, and shall approve a budget and education plan on forms provided bythe department of elementary and secondary education. The budget andeducation plan shall be submitted to the department of elementary andsecondary education, signed by the officers of the board of education, withinforty-five calendar days of notification that the district has been identifiedas experiencing financial stress. Minimally, the budget and education plansubmitted by the board of education shall:
(1) Give assurances that adequate educational services to students ofthe district will continue uninterrupted for the remainder of the currentschool year, and that the district can provide a minimum school term requiredby section 163.021, RSMo;
(2) Outline a procedure to be followed by the district to report todistrict patrons about the financial condition of the district;
(3) Outline a procedure to be followed by the district to report todistrict patrons about the impact of the financial condition of the districton the educational services provided to students; and
(4) Detail the expenditure reduction measures, revenue increases orother actions to be taken by the school district to address its condition offinancial stress. If requested, the department of elementary and secondary education shallassist a board of education in the development of a budget and education planrequired by this section. Upon receipt and following review of any budget andeducation plan, the commissioner of elementary and secondary education or hisdesignee may make suggestions to improve the plan. Nothing in the law shallexempt a board of education from submitting a budget and education plan to thedepartment of elementary and secondary education according to the provisionsof this section following each such notification that a district has beenidentified as experiencing financial stress; except that, the commissioner ofelementary and secondary education may permit a board of education to makeamendments to or update a budget and education plan previously submitted tothe department of elementary and secondary education.
Districts in financial stress, factors determining--notification todistrict school board, contents--board to prepare budget and educationplan, contents.
161.520. 1. By October 1, 1992, and by each October first thereafter,the department of elementary and secondary education shall identify any schooldistrict experiencing financial stress. The commissioner of elementary andsecondary education or his designee shall review the information submitted onthe report required by section 162.821, RSMo, to identify school districtsexperiencing financial stress. Further, the commissioner of elementary andsecondary education shall be authorized to obtain such additional informationfrom public school districts as may be necessary to determine school districtsexperiencing financial stress. Annually, a listing of school districtsidentified as experiencing financial stress according to the provisions ofthis section shall be provided to the governor, speaker of the house andpresident pro tem of the senate by the commissioner of elementary andsecondary education. For the purposes of this section, a school districtshall be identified as experiencing financial stress if it:
(1) Has a negative balance in its teachers' or incidental funds at theend of the most recently completed fiscal year and is not in compliance withthe provisions of section 165.021, RSMo;
(2) Has a combined balance remaining in teachers' and incidental fundsof less than three percent at the end of the most recently completed fiscalyear of the amount expended from such funds during the previous fiscal year;or
(3) Did tax anticipation borrowing during the most recently completedfiscal year for the period February first through June thirtieth to meetexpenditures of the district because of insufficient fund balances orreserves.
2. For the purposes of this section, a school district may be identifiedas experiencing financial stress if three or more of the following conditionsexist:
(1) For any of the district's funds for the most recently completedfiscal year, expenditures exceeded receipts because of costs to the districtthat are recurring;
(2) Has declining fund balances while the district is receiving stateaid under the provisions of section 163.172, RSMo, for the sole purpose ofincreasing salaries of teachers of the district;
(3) Has engaged in tax anticipation borrowing to meet obligatedexpenditures for the period October first to December thirty-first of the mostrecently completed fiscal year, and interest expense to the district exceededinterest revenue on district funds;
(4) For the most recently completed three tax years, there is a declinein the collection rate for current and delinquent taxes paid to the district;
(5) For the most recently completed three fiscal years, there is adeclining trend of student enrollment without a proportionate decline in thenumber of professional staff, except in such districts where professionalstaff have been reassigned to reduce pupil teacher ratios in the elementarygrades;
(6) For the most recently completed three fiscal years, there is astatic or an increasing trend of student enrollment while the number ofprofessional staff has been reduced;
(7) For the most recently completed three fiscal years, salaries paid tononadministrative staff have not increased;
(8) For the most recently completed three fiscal years, administrativecosts in the district have increased as measured by the percentage of totaldistrict expenditures; or
(9) Has a declining trend or recent significant loss of assessedvaluation.
3. The department of elementary and secondary education shall notify byNovember first the board of education and chief operating officer of anyschool district identified as experiencing financial stress according to theprovisions of this section. The notification shall be accompanied by a copyof the provisions contained in sections 161.520 to 161.529. Upon receivingthe notification, the board of education shall develop, or cause to havedeveloped, and shall approve a budget and education plan on forms provided bythe department of elementary and secondary education. The budget andeducation plan shall be submitted to the department of elementary andsecondary education, signed by the officers of the board of education, withinforty-five calendar days of notification that the district has been identifiedas experiencing financial stress. Minimally, the budget and education plansubmitted by the board of education shall:
(1) Give assurances that adequate educational services to students ofthe district will continue uninterrupted for the remainder of the currentschool year, and that the district can provide a minimum school term requiredby section 163.021, RSMo;
(2) Outline a procedure to be followed by the district to report todistrict patrons about the financial condition of the district;
(3) Outline a procedure to be followed by the district to report todistrict patrons about the impact of the financial condition of the districton the educational services provided to students; and
(4) Detail the expenditure reduction measures, revenue increases orother actions to be taken by the school district to address its condition offinancial stress. If requested, the department of elementary and secondary education shallassist a board of education in the development of a budget and education planrequired by this section. Upon receipt and following review of any budget andeducation plan, the commissioner of elementary and secondary education or hisdesignee may make suggestions to improve the plan. Nothing in the law shallexempt a board of education from submitting a budget and education plan to thedepartment of elementary and secondary education according to the provisionsof this section following each such notification that a district has beenidentified as experiencing financial stress; except that, the commissioner ofelementary and secondary education may permit a board of education to makeamendments to or update a budget and education plan previously submitted tothe department of elementary and secondary education.
