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HB0030 • 2022

School finance-increasing cash reserves.

AN ACT relating to school finance; implementing modifications to the Wyoming education resource block grant model; increasing the amount that can be computed for a school district's operating balance and cash reserves; prohibiting expenditures on capital construction during a specified period; and providing for an effective date.

Budget Education
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Education
Last action
2022-03-08
Official status
enrolled
Effective date
3/8/2022

Plain English Breakdown

The official source material did not provide specific details on updates to reporting requirements or calculation methods beyond what is mentioned in the summary.

Increasing School District Cash Reserves

This law changes how school districts can save money, allowing them to keep more cash reserves and limiting their ability to spend it on building new schools.

What This Bill Does

  • Increases the limit of operating balances and cash reserves that a district can maintain from fifteen percent (15%) to thirty percent (30%) of the prior year's foundation program amount for fiscal years ending June 30, 2022 through June 30, 2026.
  • Requires school districts to separately account for and report any increase in their cash reserves during this period.
  • Prohibits schools from spending increased operating balance and cash reserves on capital construction except for repairs and replacements.

Who It Names or Affects

  • School districts in Wyoming
  • The Department of Education

Terms To Know

Operating balance and cash reserves
Money that schools can save but not spend on specific legal obligations or programs.
Foundation program amount
The basic budget for each school district based on student needs.

Limits and Unknowns

  • This law only applies to the period from June 30, 2022 through June 30, 2026.
  • It does not specify how schools should use their increased cash reserves during this time.

Bill History

  1. 2022-03-08 LSO

    Assigned Chapter Number 14

  2. 2022-03-08 Governor

    Governor Signed HEA No. 0003

  3. 2022-03-04 Senate

    S President Signed HEA No. 0003

  4. 2022-03-03 House

    H Speaker Signed HEA No. 0003

  5. 2022-03-03 LSO

    Assigned Number HEA No. 0003

  6. 2022-03-03 Senate

    S 3rd Reading:Passed 30-0-0-0-0

  7. 2022-03-02 Senate

    S 2nd Reading:Passed

  8. 2022-03-01 Senate

    S COW:Passed

  9. 2022-02-28 Senate

    S Placed on General File

  10. 2022-02-28 Senate

    S04 - Education:Recommend Do Pass 5-0-0-0-0

  11. 2022-02-23 Senate

    S Introduced and Referred to S04 - Education

  12. 2022-02-21 Senate

    S Received for Introduction

  13. 2022-02-21 House

    H 3rd Reading:Passed 46-10-4-0-0

  14. 2022-02-18 House

    H 2nd Reading:Passed

  15. 2022-02-17 House

    H COW:Passed

  16. 2022-02-16 House

    H Placed on General File

  17. 2022-02-16 House

    H04 - Education:Recommend Do Pass 8-0-1-0-0

  18. 2022-02-14 House

    H Introduced and Referred to H04 - Education 47-12-1-0-0

  19. 2022-02-11 House

    H Received for Introduction

  20. 2022-01-14 LSO

    Bill Number Assigned

Official Summary Text

Bill Summary - 22LSO-0105
Bill No.:

HB0030

Effective:

Immediately

LSO No.:

22LSO-0105

Enrolled Act No.:

HEA No. 0003

Chapter No.:

14

Prime Sponsor:

Joint Education Interim Committee

Catch Title:

School finance-increasing cash reserves.

Subject:

Increase of school district cash reserves limits.

Summary/Major Elements:

This act modifies the calculation of school districts' local revenues used within the education resource block grant model.

The act increases the limit of operating balances and cash reserves that a district can maintain from fifteen percent (15%) to thirty percent (30%) of the prior year's foundation program amount before any excess is counted as a local revenue for the fiscal year ending June 30, 2022, through the fiscal year ending June 30, 2026.

This act requires school districts to separately account for the increase authorized and prohibits expenditure of the increased operating balance and cash reserves on school capital construction.

Comments:

Amends the education resource block grant model and K-12 school finance.
The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent.

While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.

Current Bill Text

Read the full stored bill text
22LSO-0105

ORIGINAL House

Bill No
.
HB0030

ENROLLED ACT NO. 3,

HOUSE OF REPRESENTATIVES

SIXTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING
2022 Budget Session

AN ACT relating to school finance; implementing modifications to the Wyoming education resource block grant model; increasing the amount that can be computed for a school district's operating balance and cash reserves; prohibiting expenditures on capital construction during a specified period; 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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13
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313(e) is amended to read:

21
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13
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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,
and except where a different percentage is otherwise specified in this subsection,
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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13
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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. Revenues from settlements of protested amounts attributable to levies assessed under W.S. 21
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13
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102(a)(i)(A) and (ii)(A) and 21
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13
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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
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13
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310(a) for the purpose of determining distributions under W.S. 21
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13
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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
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15
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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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15
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109(e) and shall not be considered an operating balance and cash reserve under this section.
For the fiscal year ending June 30, 2022 through the fiscal year ending June 30, 2026, 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 thirty percent (30%) of the total foundation program amount computed under W.S. 21
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13
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309 for the preceding fiscal year. During this period, the amount of a district's operating balance and cash reserves that may be increased from fifteen percent (15%) to thirty percent (30%) of the total foundation program amount computed under W.S. 21
‑
13
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309 for the preceding fiscal year shall be accounted for and reported separately and shall not be transferred or expended for purposes of capital construction. For purposes of this subsection, "capital construction" does not include
major building and facility repair and replacement as defined under W.S. 21
‑
15
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109(a)(iii).

Section 2
.

This act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

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