SB 0543 Revises school district transfers of funds for capital purposes
LR Number:2060L.03T Fiscal Note:2060-03
Last Action:06/27/01 - Signed by Governor Journal page:
Title:HCS SB 543
Effective Date:August 28, 2001
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Current Bill Summary

HCS/SB 543 - ONE-TIME TRANSFER - This act allows certain districts, currently including Campbell R-II in Dunklin County, to make a one-time transfer of operating funds to the Capital Projects Fund following any single year increase in assessed value of at least 20% due to the siting of a new electric generating plant.

The transfer may be made in an amount equal to twice the transfer amount otherwise permitted for the year the transfer is made. The transfer shall be made prior to the end of the second fiscal year following the fiscal year in which the increase in assessed valuation is effective. The transfer may be made without regard to whether the transferred funds are used for current expenditures. No transfer shall be made pursuant to this subsection after June 30, 2003.

This act is similar to the TAT version of HB 725 (2000).

TRANSFERS OF SCHOOL FUNDS GENERALLY - The act revises existing limitations on the amount of transfers of operating funds to the capital projects fund. The amount of classroom instructional capital expenses which may be made from operating funds is changed to the greater of: 1) 25% of the Guaranteed Tax Base or "GTB" (about $33,000 for the current school year); or 2) 2.25% of the district's line 1 entitlement for the second preceding year. The act retains existing transfer authority for "grandfathered" lease purchases, allowed transportation expenses and area vocational-technical school capital expenses.

The "6 cents plus 18 cents times the GTB" transfer is replaced by authority to transfer the greater of: 1) 9% of the district's line 1 entitlement for the preceding year, or 2) the GTB (about $130,000 for the current school year. This transfer can only be made for a capital projects purpose identified and approved by a school board resolution. This transfer is permitted each year for a district meeting the teacher salary expenditure requirements of section 165.016, RSMo, with certain limitations. For any other district, the transfer can only be made for current year expenditures. The existing eligibility criteria for transfers are retained.

Similar provisions are contained in SB 480.

CAPITAL EXPENDITURES - No school district shall make any expenditure for any lease purchase, pursuant to section 177.088, RSMo, and incurred on or after January 1, 1997, from the district's capital projects fund unless the district levies local capital projects fund taxes, in the current year, no less than the amount of such expenditure. Any expenditure made in violation of this requirement shall be considered an unlawful transfer of funds under section 165.011, RSMo, and that amount shall be deducted from the school district's state aid in the following school year.

Similar provisions are contained in SB 480.