Text: HSB00232 Text: HSB00234 Text: HSB00200 - HSB00299 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 76.19 STATE SCHOOL BOND CREDIT 1 2 ENHANCEMENT PROGRAM. 1 3 If a school district that has issued bonds pursuant to 1 4 chapter 296 or has entered into a loan agreement pursuant to 1 5 section 297.36 fails to pay principal or interest on its bonds 1 6 or loan agreements when due, upon certification by the trustee 1 7 or paying agent designated pursuant to section 76.10 to the 1 8 director of revenue and finance, the director shall withhold 1 9 and directly apply, from any state appropriation to which the 1 10 school district is entitled, so much as is certified to the 1 11 trustee or paying agent, to the payment of the principal or 1 12 interest on the bonds or loan agreement of the school district 1 13 then due. The obligation of the director to withhold and 1 14 directly apply moneys from any state appropriation to which a 1 15 school district is entitled does not create any legal 1 16 obligation of the state to pay, when due, the principal or 1 17 interest on the bonds or loan agreements of the school 1 18 district. All state appropriations made to a school district 1 19 shall be subject to the provisions of this section. 1 20 Sec. 2. Section 257.16, Code 1999, is amended to read as 1 21 follows: 1 22 257.16 APPROPRIATIONS. 1 23 There is appropriated each year from the general fund of 1 24 the state an amount necessary to pay the foundation aid and 1 25 supplementary aid under section 257.4, subsection 2. 1 26 All state aids paid under this chapter, unless otherwise 1 27 stated, shall be paid in monthly installments beginning on 1 28SeptemberJuly 15 of a budget year and ending on or about June 1 29 15 of the budget year as determined by the department of 1 30 management, taking into consideration the relative budget and 1 31 cash position of the state resources. 1 32 All moneys received by a school district from the state 1 33 under this chapter shall be deposited in the general fund of 1 34 the school district, and may be used for any school general 1 35 fund purpose, subject to the limitation provided in section 2 1 76.19 relating to use of moneys appropriated for the payment 2 2 of the principal or interest of school district bonds or loan 2 3 agreements in the event a school district fails to pay 2 4 principal or interest on such obligations when due. The 2 5 school district shall repay the general fund of the school 2 6 district for any moneys so applied upon receipt of moneys 2 7 derived from the levy authorized pursuant to section 76.2. 2 8 Sec. 3. Section 298.10, Code 1999, is amended to read as 2 9 follows: 2 10 298.10 LEVY FOR CASH RESERVE. 2 11 The board of directors of a school districtmayshall 2 12 certify for levy by April 15 of a school year, a tax on all 2 13 taxable property in the school district in order to raise an 2 14 amountfor anecessary to maintain a cash reserve for a school 2 15 district's general fund as provided in section 298A.2A. The 2 16 amount raised for a necessary cash reserve does not increase a 2 17 school district's authorized expenditures as defined in 2 18 section 257.7. 2 19 Sec. 4. Section 298A.2, Code 1999, is amended to read as 2 20 follows: 2 21 298A.2 GENERAL FUND. 2 22 All moneys received by a school corporation from taxes and 2 23 other sources must be accounted for in the general fund, 2 24 except moneys required by law to be accounted for in another 2 25 fund. A cash reserve fund shall be maintained in the general 2 26 fund pursuant to section 298A.2A. 2 27 Sec. 5. NEW SECTION. 298A.2A CASH RESERVE FUND. 2 28 1. A cash reserve fund shall be established in the general 2 29 fund. Moneys contained within the cash reserve fund shall not 2 30 be transferred, used, obligated, appropriated, or otherwise 2 31 encumbered except as provided in this section. Interest or 2 32 earnings on moneys deposited in the cash reserve fund may be 2 33 allocated to pay legal obligations of the general fund when 2 34 due, when sufficient funds from another source are not 2 35 available, but an amount equal to the amount allocated, with 3 1 the exception of allocations for nonrecurring emergency 3 2 expenditures pursuant to subsection 3, shall be returned to 3 3 the cash reserve fund by the end of each fiscal year. 3 4 2. The minimum balance maintained in the cash reserve fund 3 5 shall be equal to at least ten percent of a school district's 3 6 authorized budget for the current fiscal year. Of this 3 7 amount, a minimum of five percent of the cash reserve fund 3 8 balance shall be maintained and designated for cash flow 3 9 purposes. A school district may maintain and designate up to 3 10 five percent of the cash reserve fund balance for nonrecurring 3 11 emergency expenditures. 3 12 3. The moneys in the cash reserve fund may be expended by 3 13 the board of directors of a school district for nonrecurring 3 14 emergency expenditures. Moneys in the cash reserve fund shall 3 15 not be expended for the payment of any recurring expenditure 3 16 or collective bargaining agreement of arbitrator's decision 3 17 negotiated or awarded pursuant to chapter 20. 3 18 4. The requirement in subsection 2 relating to maintaining 3 19 a five-percent cash reserve for cash flow purposes may be 3 20 implemented or phased-in over a period of time commencing on, 3 21 and expiring no later than, three years from the effective 3 22 date of this Act. 3 23 EXPLANATION 3 24 This bill provides for the establishment of a school bond 3 25 credit enhancement program for school district general 3 26 obligation bonds or loan agreements. The bill provides that 3 27 if a school district which has issued bonds pursuant to Code 3 28 chapter 296 or has entered into a loan agreement pursuant to 3 29 Code section 297.36 fails to pay principal or interest when 3 30 due, upon certification by the trustee or paying agent 3 31 designated pursuant to Code section 76.10 to the director of 3 32 revenue and finance, the director will withhold and apply from 3 33 any state appropriation to which the school district is 3 34 entitled, the amount certified to the trustee or paying agent 3 35 to the payment of the principal or interest on the bonds or 4 1 loan agreement of the school district then due. The bill 4 2 provides that the obligation of the director to withhold and 4 3 directly apply moneys does not create any legal obligation of 4 4 the state to pay the principal or interest. The bill provides 4 5 that all state appropriations made to a school district shall 4 6 be subject to these provisions. 4 7 The bill also provides that state aid payments will be 4 8 payable in monthly installments beginning on July 15 of a 4 9 school budget year, rather than the September 15 starting date 4 10 provided for in Code section 257.16, and provides that moneys 4 11 received by a school district from the state pursuant to Code 4 12 chapter 257 and deposited in the general fund of the school 4 13 district will be subject to the withholding and payment 4 14 provisions by the director of revenue and finance, with the 4 15 school district obligated to repay the general fund for any 4 16 moneys so applied upon receipt of moneys derived from the levy 4 17 authorized pursuant to Code section 76.2. 4 18 The bill additionally provides that the provisions in Code 4 19 section 298.10 relating to authorization of a school district 4 20 board of directors to levy a tax on all taxable property in 4 21 the school district in order to maintain a cash reserve for a 4 22 school district's general fund will be required, rather than 4 23 remain optional, and that interest or earnings on moneys 4 24 deposited in the cash reserve fund may be used to pay legal 4 25 obligations of the general fund when due when sufficient funds 4 26 from another source are not available. The bill provides that 4 27 an amount equal to the amount so allocated, with the exception 4 28 of allocations for nonrecurring emergency expenditures, shall 4 29 be returned to the cash reserve fund by the end of each fiscal 4 30 year. The bill provides that the minimum balance maintained 4 31 in the cash reserve fund will be equal to at least 10 percent 4 32 of a school district's authorized budget, and that of this 4 33 amount, a minimum of 5 percent of the cash reserve fund 4 34 balance shall be maintained and designated for cash flow 4 35 purposes. The bill further provides that a school district 5 1 may maintain and designate up to 5 percent of the cash reserve 5 2 fund balance for nonrecurring emergency expenditures, and that 5 3 moneys in the cash reserve fund shall not be expended for the 5 4 payment of any recurring expenditure or collective bargaining 5 5 agreement of arbitrator's decision negotiated or awarded 5 6 pursuant to Code chapter 20. 5 7 The bill additionally provides that the requirement 5 8 relating to maintaining a 5 percent cash reserve for cash flow 5 9 purposes may be implemented or phased-in over a three-year 5 10 period beginning on the effective date of the bill. 5 11 LSB 2416HC 78 5 12 rn/jw/5
Text: HSB00232 Text: HSB00234 Text: HSB00200 - HSB00299 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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