HOUSE BILL NO. 3275 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE RIGGS.
7065H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal sections 164.011, 165.011, and 165.051, RSMo, and to enact in lieu thereof three new sections relating to moneys in school funds, with a delayed effective date.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 164.011, 165.011, and 165.051, RSMo, are repealed and three 2 new sections enacted in lieu thereof, to be known as sections 164.011, 165.011, and 165.051, 3 to read as follows: 164.011. 1. The school board of each district annually shall prepare an estimate of the 2 amount of money to be raised by taxation for the ensuing school year, the rate required to 3 produce the amount, and the rate necessary to sustain the school or schools of the district for 4 the ensuing school year, to meet principal and interest payments on the bonded debt of the 5 district and to provide the funds to meet other legitimate district purposes. In preparing the 6 estimate, the board shall have sole authority in determining what part of the total authorized 7 rate shall be used to provide revenue for each of the funds as authorized by section 165.011. 8 Prior to setting tax rates for the teachers' and incidental funds, the school board of each school 9 district annually shall set the tax rate for the capital projects fund as necessary to meet the 10 expenditures of the capital projects fund after all transfers allowed pursuant to subsection [4] 11 5 of section 165.011. Furthermore the tax rate set in the capital projects fund shall not require 12 the reduction of the equalized combined tax rates for the teachers' and incidental funds to be 13 less than the greater of the minimum operating levy for the current year for school purposes 14 established under subsection 2 of section 163.021.
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 3275 2
15 2. The school board of each district shall forward the estimate to the county clerk on 16 or before September first. In school districts divided by county lines, the estimate shall be 17 forwarded to the proper officer of each county in which any part of the district lies. 18 3. When revising its tax rate each year, the aggregate increase in the valuation of 19 property assessed by the state tax commission for the current year over that of the previous 20 year shall be considered new construction and improvement. 21 4. The department of elementary and secondary education and any other government 22 agency involved in the tax rate process shall update the necessary forms, reports, and 23 documents in order to implement the provisions of this section. 165.011. 1. (1) The following funds are created for the accounting of all school 2 moneys: "Teachers' Fund", "Incidental Fund", "Capital Projects Fund" and "Debt Service 3 Fund". The treasurer of the school district shall open an account for each fund specified in 4 this section[, and]. 5 (2) All moneys received from the county school fund and all moneys derived from 6 taxation for teachers' wages shall be placed to the credit of the teachers' fund. 7 (3) All tuition fees, state moneys received under section 163.031, and all other 8 moneys received from the state except as herein provided shall be placed to the credit of the 9 teachers' and incidental funds at the discretion of the district board of education, except as 10 provided in subsection 5 of section 163.031. 11 (4) Money received from other districts for transportation and money derived from 12 taxation for incidental expenses shall be credited to the incidental fund. 13 (5) All money derived from taxation or received from any other source for the 14 erection of buildings or additions thereto and the remodeling or reconstruction of buildings 15 and the furnishing thereof, for the payment of lease-purchase obligations, for the purchase of 16 real estate, or from sale of real estate, schoolhouses or other buildings of any kind, or school 17 furniture, from insurance, from sale of bonds other than refunding bonds shall be placed to the 18 credit of the capital projects fund. 19 (6) All moneys derived from the sale or lease of sites, buildings, facilities, 20 furnishings, and equipment by a school district as authorized under section 177.088 shall be 21 credited to the capital projects fund. 22 (7) Money derived from taxation for the retirement of bonds and the payment of 23 interest thereon shall be credited to the debt service fund, which shall be maintained as a 24 separate bank account. 25 (8) Receipts from delinquent taxes shall be allocated to the several funds on the same 26 basis as receipts from current taxes, except that where the previous years' obligations of the 27 district would be affected by such distribution, the delinquent taxes shall be distributed 28 according to the tax levies made for the years in which the obligations were incurred. HB 3275 3
29 (9) All refunds received shall be placed to the credit of the fund from which the 30 original expenditures were made. 31 (10) Money donated to the school districts shall be placed to the credit of the fund 32 where it can be expended to meet the purpose for which it was donated and accepted. 33 (11) Money received from any other source whatsoever shall be placed to the credit of 34 the fund or funds designated by the board. 35 2. (1) The school board may transfer any portion of the unrestricted balance 36 remaining in the incidental fund to the teachers' fund. 37 (2) Any district that uses an incidental fund transfer to pay for more than twenty-five 38 percent of the annual certificated compensation obligation of the district and has an incidental 39 fund balance on June thirtieth in any year in excess of fifty percent of the combined incidental 40 teachers' fund expenditures for the fiscal year just ended shall be required to transfer the 41 excess from the incidental fund to the teachers' fund. 42 (3) If a balance remains in the debt service fund, after the total outstanding 43 indebtedness for which the fund was levied is paid, the board may transfer the unexpended 44 balance to the [capital projects fund] teachers' fund. 45 (4) If a balance remains in the bond proceeds after completion of the project for 46 which the bonds were issued, the balance shall be transferred from the incidental or capital 47 projects fund to the debt service fund. 48 (5) After making all placements of interest otherwise provided by law, a school 49 district may transfer from the capital projects fund to the [incidental] teachers' fund the 50 interest earned from undesignated balances in the capital projects fund. 51 3. A school district may borrow from one of the following funds: teachers' fund, 52 incidental fund, or capital projects fund, as necessary to meet obligations in another of those 53 funds; provided that the full amount is repaid to the lending fund within the same fiscal year. 54 [3.] 4. Tuition shall be paid from either the teachers' or incidental funds. Employee 55 benefits for certificated staff shall be paid from the teachers' fund. 56 [4.] 5. (1) Other provisions of law to the contrary notwithstanding, the school board 57 of a school district that meets the provisions of subsection 5 of section 163.031 may transfer 58 from the incidental fund to the capital projects fund the sum of: 59 [(1)] (a) The amount to be expended for transportation equipment that is considered 60 an allowable cost under state board of education rules for transportation reimbursements 61 during the current year; plus 62 [(2)] (b) Any amount necessary to satisfy obligations of the capital projects fund for 63 state-approved area vocational-technical schools; plus 64 [(3)] (c) Current year obligations for lease-purchase obligations entered into prior to 65 January 1, 1997; plus HB 3275 4
66 [(4)] (d) The amount necessary to repay costs of one or more guaranteed energy 67 savings performance contracts to renovate buildings in the school district, provided that the 68 contract is only for energy conservation measures as defined in section 640.651 and provided 69 that the contract specifies that no payment or total of payments shall be required from the 70 school district until at least an equal total amount of energy and energy-related operating 71 savings and payments from the vendor pursuant to the contract have been realized by the 72 school district; plus 73 [(5)] (e) An amount not to exceed the greater of: 74 [(a)] a. One hundred sixty-two thousand three hundred twenty-six dollars; or 75 [(b)] b. Seven percent of the state adequacy target multiplied by the district's 76 weighted average daily attendance[,]. 77 78 [provided that] 79 (2) Transfer amounts in excess of ten percent of the current year obligations of the 80 capital projects fund authorized under this [subdivision] subsection may be transferred only 81 by a resolution of the school board approved by a majority of the board members in office 82 when the resolution is voted on and identifying the specific capital projects to be funded 83 directly by the district by the transferred funds and an estimated expenditure date, which 84 shall be within one fiscal year. 85 [5.] 6. Beginning in the 2006-07 school year, a district meeting the provisions of 86 subsection 5 of section 163.031 and not making the transfer under paragraph (e) of 87 subdivision [(5)] (1) of subsection [4] 5 of this section, nor making payments or expenditures 88 related to obligations made under section 177.088 may transfer from the incidental fund to the 89 debt service fund or the capital projects fund the greater of: 90 (1) The state aid received in the 2005-06 school year as a result of no more than 91 eighteen cents of the sum of the debt service and capital projects levy used in the foundation 92 formula and placed in the respective debt service or capital projects fund, whichever fund had 93 the designated tax levy; or 94 (2) Five percent of the state adequacy target multiplied by the district's weighted 95 average daily attendance. 96 [6.] 7. Beginning in the 2006-07 school year, the department of elementary and 97 secondary education shall deduct from a school district's state aid calculated pursuant to 98 section 163.031 an amount equal to the amount of any transfer of funds from the incidental 99 fund to the capital projects fund or debt service fund performed during the previous year in 100 violation of this section; except that the state aid shall be deducted over no more than five 101 school years following the school year of an unlawful transfer based on a plan from the 102 district approved by the commissioner of elementary and secondary education. HB 3275 5
103 [7.] 8. (1) A school district may transfer unrestricted funds from the capital projects 104 fund to the incidental fund in any year to avoid becoming financially stressed as defined in 105 subsection 1 of section 161.520. 106 (2) If on June thirtieth of any fiscal year the sum of unrestricted balances in a school 107 district's incidental fund and teacher's fund is less than twenty percent of the sum of the 108 school district's expenditures from those funds for the fiscal year ending on that June thirtieth, 109 the school district may, during the next succeeding fiscal year, transfer to its incidental fund 110 an amount up to and including the amount of the unrestricted balance in its capital projects 111 fund on that June thirtieth. 112 (3) For purposes of this subsection, in addition to any other restrictions that may 113 apply to funds in the school district's capital projects fund, any funds that are derived from the 114 proceeds of one or more general obligation bond issues shall be considered restricted funds 115 and shall not be transferred to the school district's incidental fund. 116 9. Beginning in the 2027-28 school year and in all subsequent school years: 117 (1) All interest earned from balances in the teachers' fund, incidental fund, 118 capital projects fund, and debt service fund created under subsection 1 of this section 119 shall be used to supplement, not supplant, moneys used for teacher salaries to the extent 120 that such interest is not otherwise obligated by other provisions of state law; and 121 (2) The capital projects fund shall be capped at a maximum of ten percent of 122 undesignated balances with any undesignated balances over ten percent to be 123 transferred at the beginning of the fiscal year to the teachers' fund, which shall be 124 used to supplement, not supplant, moneys used for teacher salaries. 165.051. If any school district has money in the teachers', incidental, capital projects 2 or debt service fund not needed within a reasonable period of time for the purpose for which 3 the money was received, the school board in the district, if it deems it advisable, may invest 4 the funds in either open time deposits or certificates of deposit secured under the provisions of 5 sections 110.010 and 110.020; or in bonds, redeemable at maturity at par, of the state of 6 Missouri, of the United States, or of any wholly owned corporation of the United States; or in 7 other short term obligations of the United States, or in any instrument permitted by law for the 8 investment of state moneys. No open time deposits shall be made or bonds purchased to 9 mature beyond the date that the funds are needed for the purpose for which they were 10 received by the school district. Interest accruing from the investment of the surplus funds in 11 such deposits or bonds shall be credited to the teachers' fund [from which the money was 12 invested] and shall be used to supplement, not supplant, moneys used for teacher salaries 13 to the extent that such interest is not otherwise obligated by other provisions of state 14 law. HB 3275 6
Section B. The repeal and reenactment of sections 164.011, 165.011, and 165.051 of 2 this act shall become effective upon July 1, 2027. ✔
Statutes affected: