This bill proposes several updates to the current statutes regarding insolvent school districts. It modifies the criteria for determining a school district's insolvency by changing the threshold for accumulated deficits from "five per cent" to "percent" of the revenue control limit. Additionally, it clarifies the jurisdiction of the state board of education, which will now have the authority to demonstrate insolvency or gross mismanagement by a preponderance of evidence. The bill also updates the language regarding the receiver's powers, ensuring that the receiver's authority is effective immediately upon appointment and that they must report any legal violations to the state board.

Furthermore, the bill introduces new provisions that address the financial implications for school districts and charter schools when a district in receivership ceases operations due to financial insolvency. It allows these entities to revise their budgets and average daily membership counts and mandates adjustments to state aid based on student transfers. The bill also stipulates that a percentage of property tax levy revenues must be distributed on a pro rata basis to schools enrolling students from the insolvent district. Overall, these changes aim to enhance the management and oversight of financially troubled school districts while ensuring a smoother transition for affected students.

Statutes affected:
Introduced Version: 15-103