House Bill 1170

AN ACT TO REQUIRE THE SCHOOL BOARD OF A SCHOOL DISTRICT HAVING A CERTAIN ENDING FUND BALANCE IN THE 2010, 2011 AND 2012 FISCAL YEARS TO SUBMIT A PLAN FOR BUDGET CUTS TO THE STATE DEPARTMENT OF EDUCATION; TO AUTHORIZE THE STATE BOARD OF EDUCATION TO ADOPT RULES AND REGULATIONS SPECIFYING THE REQUIRED CONTENTS OF THE PLAN; TO REQUIRE THE DEPARTMENT TO APPROVE OR RETURN THE PLAN TO THE SCHOOL DISTRICT WITH INSTRUCTIONS; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) During the 2010, 2011 and 2012 fiscal years, whenever a school district has an ending fund balance in the maintenance fund of the school district which is an amount equal to less than seven percent (7%) of the total revenue deposited into the district maintenance fund during that fiscal year, the school board of the school district shall prepare and file with the State Department of Education a plan under which the district intends to reduce costs in the district. The plan must be submitted by the school board to the department contemporaneously with the budgetary information required under Section 37-61-9(2).

(2) The State Board of Education may adopt rules and regulations prescribing the specific contents required to be included in a plan submitted by a local school board to the department under subsection (1) of this section. The rules and regulations may include provisions addressing the following matters:

(a) A description of the financial data or documents and budgetary information that a district must submit to the department;

(b) A description of the manner by which the school district intends to achieve costs savings, demonstrated by actual reductions in budgeted expenditures;

(c) A requirement that before a school board makes expenditure cuts by reductions in the number of instructional employees or by reducing any discretionary supplemental amounts paid to instructional personnel, significant cost savings must be demonstrated by reducing the number of noninstructional personnel or the amounts paid to those employees, or both; and

(d) Any other information deemed necessary by the State Board of Education.

(3) After analyzing a plan that has been filed with the department under subsection (1), the department shall either approve the plan as submitted by the school board or alternatively, withhold approval and return the plan to the district with guidance or instructions, which may require resubmission of the plan by the school board for further review after changes have been made to the plan.

(4) This section shall stand repealed on July 1, 2012.

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