This bill amends the laws governing unexpended balances and unallocated general operating fund balances of school administrative units in the following ways.
1. It changes the current requirement that the unexpended balance of all money raised by a school administrative unit received for school purposes be carried forward and credited to the unit for educational programs in the ensuing year, to instead require that the unexpended balance be carried forward and spent by the unit in the ensuing year.
2. It changes the current requirement that unallocated general operating fund balances in excess of 5% of the previous fiscal year's school budget be used to reduce the state and local share of the total allocation for the purpose of computing state subsidy, to instead require that the unallocated balances in excess of 5% be used to fund educational programs. It authorizes school boards to carry forward unallocated balances in excess of 5% of the previous year's school budget and spend those funds for educational programs in the next year or over a period not to exceed 3 years.
3. It strikes language that applies only to fiscal years 2021-22, 2022-23, 2023-24 and
2024-25.

Statutes affected:
Bill Text LD 1518, HP 1003: 20-A.15004, 20-A.15689