House Bill 902

AN ACT TO AMEND SECTION 37-9-35, MISSISSIPPI CODE OF 1972, TO RESTRICT THE DISCHARGE OR RELEASE OF TEACHERS AND ADMINISTRATORS BY LOCAL SCHOOL DISTRICTS WHICH EXPERIENCE A DECREASE IN ADEQUATE EDUCATION PROGRAM FUNDS DUE TO A REDUCTION IN THE AVERAGE DAILY ATTENDANCE DURING ANY SCHOOL YEAR; TO PROVIDE THAT IN THE EVENT OF A REDUCTION OF FUNDING, TEACHERS AND ADMINISTRATORS SHALL BE THE LAST TO BE DISCHARGED OR RELEASED BY THE SCHOOL DISTRICT; TO AMEND SECTION 27-104-13, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE STATE FISCAL OFFICER SHALL NOT REDUCE ANY ALLOCATIONS OF FUNDS TO THE STATE DEPARTMENT OF EDUCATION WHEN STATE REVENUES FALL BELOW THE REVENUE ESTIMATE; TO PROVIDE THAT THE STATE DEPARTMENT OF EDUCATION SHALL NOT REDUCE ANY FUNDS DESIGNATED FOR TEACHER'S AND ADMINISTRATOR'S COMPENSATION UNDER THE ADEQUATE EDUCATION PROGRAM WHEN REALLOCATING OF THOSE FUNDS TO LOCAL SCHOOL DISTRICTS APPROPRIATED BY THE LEGISLATURE AND ALLOCATED BY THE STATE FISCAL OFFICER; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 37-9-35, Mississippi Code of 1972, is amended as follows:

37-9-35. No school district shall employ any teachers to be paid, in whole or in part, from adequate education program funds in excess of the number allowable under Chapter 19 of this title, but as provided in that chapter the number of teachers paid, in whole or in part, from adequate education program funds shall be determined by the average daily attendance for the preceding year, and a reduction in the average daily attendance during a current year from that existing in the preceding year shall not authorize the discharge or release of a teacher or teachers during the current year or any year subsequent thereto, provided that the school district has taken the necessary steps to account for the reduction in adequate education funds to preserve teacher and administrative positions without detriment. In the event that the reduction in funding requires the discharge or release of district personnel, teachers and principals shall be the last alternative to cuts in order to maintain a balanced operating budget. Nothing herein shall be construed to prohibit any school district from employing such additional teachers as it may deem necessary provided that such teachers are paid wholly from funds other than adequate education program funds.

SECTION 2. Section 27-104-13, Mississippi Code of 1972, is amended as follows:

27-104-13. (1) The State Fiscal Officer may disapprove or reduce and revise the estimates of general funds and state-source special funds for any general fund or special fund agency and for the "administration and other expenses" budget of the Mississippi Department of Transportation, in an amount not to exceed five percent (5%), if at any time he finds that funds will not be available within the period for which the budget is drawn, or if at any time he finds that the requested expenditures, or any part thereof, are not authorized by law, and that action shall be reported to the Legislative Budget Office.

The State Fiscal Officer may, upon his determination of need based upon a finding that funds will not be available within the period for which the budget is drawn, transfer funds as provided in Section 27-103-203, from the Working Cash-Stabilization Reserve Fund to the General Fund to supplement the general fund revenue.

If the estimates of general funds and state-source special funds of all general fund and special fund agencies and of the "administration and other expenses" budget of the Mississippi Department of Transportation have been reduced by five percent (5%), additional reductions may be made, but shall consist of a uniform percentage reduction of general funds and state-source special funds to all general fund and special fund agencies and to the "administration and other expenses" budget of the Mississippi Department of Transportation.

Any state-source special funds reduced under the provisions of this subsection (1) shall be transferred to the State General Fund upon requisitions for warrants signed by the respective agency head, and the transfer shall be made within a reasonable period to be determined by the State Fiscal Officer.

The provisions of this subsection (1) authorizing the State Fiscal Officer to disapprove or reduce and revise the estimates of general funds and state-source special funds for the "administration and other expenses" budget of the Mississippi Department of Transportation shall be suspended during the period from June 30, 2009, through June 30, 2010.

(2) The Department of Revenue and University Research Center, utilizing all available revenue forecast data, shall annually develop a general fund revenue estimate to be adopted by the Legislative Budget Office as of the date of sine die adjournment.

If, at the end of October, or at the end of any month thereafter of any fiscal year, the revenues received for the fiscal year fall below ninety-eight percent (98%) of the Legislative Budget Office general fund revenue estimate at the date of sine die adjournment, the State Fiscal Officer shall reduce allocations of general funds and state-source special funds to general fund and special fund agencies and to the "administration and other expenses" budget of the Mississippi Department of Transportation, except those agencies that are exempt under this subsection (2) for purposes specified herein, in an amount necessary to keep expenditures within the sum of actual general fund receipts, including any transfers to the General Fund from the Working Cash-Stabilization Reserve Fund for the fiscal year.

The State Fiscal Officer may, upon his determination of need based on the revenue shortfall, transfer funds as provided in Section 27-103-203 from the Working Cash-Stabilization Reserve Fund to the General Fund to supplement the general fund revenue. State-source special funds in an amount equal to any reduction made under the provisions of this subsection (2) shall be transferred to the State General Fund upon requisitions for warrants signed by the respective agency head, and the transfer shall be made within a reasonable period to be determined by the State Fiscal Officer.

No agency's allocation shall be reduced in an amount to exceed five percent (5%); however, if the allocations of general funds and state-source special funds to all general fund and special fund agencies and to the "administration and other expenses" budget of the Mississippi Department of Transportation, except those agencies that are exempt under this subsection (2) for purposes specified herein, have been reduced by five percent (5%), any additional reductions required to be made under this subsection (2) shall consist of a uniform percentage reduction of general funds and state-source special funds to all general fund and special fund agencies and to the "administration and other expenses" budget of the Mississippi Department of Transportation, except those agencies that are exempt under this subsection (2) for purposes specified herein. Any receipt from loans authorized by Sections 31-17-101 through 31-17-123 shall not be included as revenue receipts.

The State Fiscal Officer shall immediately send notice of any action taken under authority of this subsection (2) to the Legislative Budget Office.

The provisions of this subsection (2) requiring the State Fiscal Officer to reduce allocations of general funds and state-source special funds * * * to the "administration and other expenses" budget of the Mississippi Department of Transportation shall be suspended during the period from June 30, 2009, through June 30, 2010.

The State Fiscal Officer shall not reduce any allocation of general funds and state-source special funds to the State Department of Education under this subsection (2). The State Department of Education shall not reduce any funds to local school districts designated for teacher and administrator compensation under Section 39-19-7 of the adequate education program in its reallocation of funds appropriated by the Legislature and allocated by the State Fiscal Officer.

(3) For the purpose of this section, the term "state-source special funds" means any special funds in any agency derived from any source, but shall not include the following special funds: special funds derived from federal sources, from local or regional political subdivisions, from agricultural commodity assessments, or from donations; special funds derived from additional fees paid for the issuance of distinctive motor vehicle license tags or plates authorized under the provisions of Chapter 19, Title 27, Mississippi Code of 1972; special funds held in a fiduciary capacity for the benefit of specific persons or classes of persons; special funds of the Mississippi Veterans Affairs Board that are paid to the board by the veteran residents of state veterans homes to fund their monthly expenses at the state veterans homes; self-generated special funds of the state institutions of higher learning or the state community or junior colleges; special funds of Mississippi Industries for the Blind, the State Port at Gulfport, Yellow Creek Inland Port, Pat Harrison Waterway District, Pearl River Basin Development District, Pearl River Valley Water Management District, Tombigbee River Valley Water Management District, Yellow Creek Watershed Authority, or Coast Coliseum Commission; special funds of the Department of Wildlife, Fisheries and Parks and the Department of Marine Resources derived from the issuance of hunting or fishing licenses; and special funds generated by agencies whose primary function includes the establishment of standards and the issuance of licenses for the practice of a profession within the State of Mississippi.

SECTION 3. This act shall take effect and be in force from and after July 1, 2012.