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 from a deficit of five per cent percent of the revenue control limit to maintain consistency in language. The bill also clarifies the jurisdiction of the state board of education, affirming that it shall have has the responsibility to demonstrate insolvency or gross mismanagement. Additionally, it updates the language regarding the receiver's powers, stating that they shall be are effective upon appointment and outlines the receiver's authority to manage contracts and financial decisions during the receivership period. Furthermore, the bill introduces new provisions that address the operational procedures for school districts in receivership. It allows for adjustments to budgets and average daily membership counts for schools enrolling students from the insolvent district, and mandates the superintendent of public instruction to adjust state aid accordingly. The bill also stipulates that the receiver must distribute a percentage of property tax levy revenues to schools that enroll students from the district in receivership, ensuring a fair allocation based on student transfers. Lastly, the act is designated as an emergency measure, allowing it to take effect immediately to address urgent public needs.

Statutes affected:
Introduced Version: 15-103