School finance-cash reserve computations.

WORKING DRAFT
2005
STATE OF WYOMING
05LSO-0613

HOUSE BILL
NO.
HB0289

School finance-cash reserve computations.

Sponsored by:
Representative(s) Wasserburger

A BILL

for

AN ACT relating to school finance; providing an exception to district cash reserve computations; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 21
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313(e) is amended to read:

21
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313.

Distribution of funds from foundation account; property tax and cash reserve adjustment; regulations.

(e)

Not later than January 31 of each fiscal year, the department shall compute the amount by which each district's operating balance and cash reserves at the end of the preceding fiscal year exceed fifteen percent (15%) of the total foundation program amount computed under W.S. 21
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309 for the preceding fiscal year. In making this calculation, the entire operating balance and cash reserves for each district for the fiscal year ending June 30, 1997, as computed by the department, shall be separately accounted for and excluded, until it has been completely expended by the district.
In addition, revenues of any district which are recaptured in excess of limitations under W.S. 21
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102(c) and which are rebated, commencing with revenues rebated during the fiscal year ending July 30, 2002, and each fiscal year thereafter, shall be separately accounted for and excluded from operating balance and cash reserve calculations under this subsection.
Except as otherwise provided in 1997 Special Session Laws, chapter 3, section 306(e), as amended, that excess shall be deemed to be a state revenue under W.S. 21
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310(a) for the purpose of determining distributions under W.S. 21
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311 and amounts to be rebated under W.S. 21
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102. The department shall promulgate rules, including reporting requirements and procedures for districts, to implement this subsection. As used in this section, "operating balance and cash reserves" means those financial resources of the district which are not encumbered by the district board of trustees for expenditure to meet an existing legal obligation or otherwise restricted by law or regulation for expenditure on specific educational programs. For purposes of this subsection, any balance within a district's separate account established under W.S. 21
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109(e) for major building and facility repair and replacement shall be deemed restricted by law for expenditure as provided by W.S. 21
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109(e) and shall not be considered an operating balance and cash reserve under this section.

Section 2.

This act is effective immediately upon co
m
pletion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constit
u
tion.

(END)

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HB0289