School districts-cash reserves.

WORKING DRAFT
2009
STATE OF
WYOMING
09LSO-0571

HOUSE BILL
NO.
HB0280

School district
s
-cash reserves.

Sponsored by:
Representative(s) Hammons, Harshman, Jorgensen and Miller

A BILL

for

AN ACT relating to
school districts;
restricting previously accumulated
school district
reserves as specified; imposing reporting duties
and granting rulemaking authority
;
and providing for an effective date.

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

Section 1.

W.S. 21
‑
13
‑
313(e) is amended to read:

21
‑
13
‑
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
‑
13
‑
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.

Expenditure of the
se
operating balance
s
and cash reserves
that
exist
ed
on June 30, 1997,
which remain unexpended as of
July
1, 2009,
shall be restricted to district emergency building and facility
needs
which are not covered by payments under W.S. 21
‑
15
‑
109
or are maintenance needs for facilities and buildings considered local enhancements under W.S. 21
‑
15
‑
111(a)(iii)
or to cost effective early retirement benefit plans offered by the district
. On and after
July
1, 2009, expenditure of these reserves shall be
in accordance with rule and regulation of the department of education
, shall demonstrate cost savings if expended for early retirement
and shall be
reported to and monitored by the department.

Revenues from settlements of protested amounts attributable to levies assessed under W.S. 21
‑
13
‑
102(a)(i)(A) and (ii)(A) and 21
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13
‑
201, regardless of the assessment year, shall be accounted for and excluded from the calculation under this subsection for a period of not more than one (1) year following that fiscal year in which the revenue was received by a district, as verified in writing by the district and certified by the county treasurer. Except as otherwise provided in 1997 Special Session Laws, chapter 3, section 306(e), as amended, and except as excluded under this subsection, that excess shall be deemed to be a state revenue under W.S. 21
‑
13
‑
310(a) for the purpose of determining distributions under W.S. 21
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13
‑
311 and amounts to be rebated under W.S. 21
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13
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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
‑
15
‑
109(e) for major building and facility repair and replacement shall be deemed restricted by law for expenditure as provided by W.S. 21
‑
15
‑
109(e) and shall not be considered an operating balance and cash reserve under this section.

Section 2.

This act is effective
July 1, 2009.

(END)

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HB0280