Senate Bill 2978

AN ACT TO AMEND SECTION 37-57-108, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE BORROWING AUTHORITY OF SCHOOL DISTRICTS IN THE EVENT OF LOCAL REVENUE SHORTFALL ALSO APPLIES TO REDUCTIONS IN ANTICIPATED ALLOCATIONS IN ADEQUATE EDUCATION PROGRAM ALLOTMENTS OR EDUCATION ENHANCEMENT FUNDS; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 37-57-108, Mississippi Code of 1972, is amended as follows:

37-57-108. In the event that the amount of revenue collected or estimated to be collected from local sources, on behalf of a school district during a fiscal year, is less than the amount provided for in the duly adopted budget of said school district for the fiscal year, or in the event that the amount of state funds received for adequate education program allotments, education enhancement funds, or other funds appropriated by the Mississippi Legislature, are less than the school district's entitlement of the appropriated amount due to reductions in allocations, as certified by the State Department of Education, then the school district may issue promissory notes in an amount and in the manner set forth in Section 27-39-333, not to exceed the estimated shortfall of revenue from the respective state or local sources, but in no event to exceed twenty-five percent (25%) of its budget anticipated to be funded from the respective sources of the shortfall for the fiscal year. A school district issuing notes under the provisions of this section shall not be required to publish notice of its intention to do so or to secure the consent of the qualified electors or the tax levying authority of such school district.

SECTION 2. This act shall take effect and be in force from and after its passage.