Text: SF00170 Text: SF00172 Text: SF00100 - SF00199 Text: SF 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 section 298.20 or has entered into a loan 1 5 agreement pursuant to section 297.36 fails to pay principal or 1 6 interest on its bonds or loan agreements when due, upon 1 7 certification by the trustee or paying agent designated 1 8 pursuant to section 76.10 to the director of revenue and 1 9 finance, the director shall withhold and directly apply, from 1 10 any state appropriation to which the school district is 1 11 entitled, so much as is certified by the trustee or paying 1 12 agent, to the payment of the principal or interest on the 1 13 bonds or loan agreement of the school district then due. The 1 14 obligation of the director to withhold and directly apply 1 15 moneys from any state appropriation to which a school district 1 16 is entitled does not create any legal obligation of the state 1 17 to pay, when due, the principal or interest on the bonds or 1 18 loan agreements of the school district. All state 1 19 appropriations made to a school district shall be subject to 1 20 this section. 1 21 Sec. 2. Section 257.16, Code 2001, is amended to read as 1 22 follows: 1 23 257.16 APPROPRIATIONS. 1 24 There is appropriated each year from the general fund of 1 25 the state an amount necessary to pay the foundation aid and 1 26 supplementary aid under section 257.4, subsection 2. 1 27 All state aids paid under this chapter, unless otherwise 1 28 stated, shall be paid in monthly installments beginning on 1 29SeptemberJuly 15 of a budget year and ending on or about June 1 30 15 of the budget year as determined by the department of 1 31 management, taking into consideration the relative budget and 1 32 cash position of the state resources. 1 33 All moneys received by a school district from the state 1 34 under this chapter shall be deposited in the general fund of 1 35 the school district, and may be used for any school general 2 1 fund purpose, subject to the limitation provided in section 2 2 76.19 relating to use of moneys appropriated for the payment 2 3 of the principal or interest of school district bonds or loan 2 4 agreements in the event a school district fails to pay 2 5 principal or interest on such obligations when due. The 2 6 school district shall pay to the general fund of the school 2 7 district an amount equal to the amount of any moneys so 2 8 applied upon receipt of moneys derived from the levy 2 9 authorized pursuant to section 76.2. 2 10 Sec. 3. Section 298.10, Code 2001, is amended to read as 2 11 follows: 2 12 298.10 LEVY FOR CASH RESERVE. 2 13 The board of directors of a school districtmayshall 2 14 certify for levy by April 15 of a school year, a tax on all 2 15 taxable property in the school district in order to raise an 2 16 amountfor anecessary to maintain a cash reserve for a school 2 17 district's general fund as provided in section 298A.2A. The 2 18 amount raised for a necessary cash reserve does not increase a 2 19 school district's authorized expenditures as defined in 2 20 section 257.7. 2 21 Sec. 4. Section 298A.2, Code 2001, is amended to read as 2 22 follows: 2 23 298A.2 GENERAL FUND. 2 24 All moneys received by a school corporation from taxes and 2 25 other sources must be accounted for in the general fund, 2 26 except moneys required by law to be accounted for in another 2 27 fund. A cash reserve fund shall be maintained in the general 2 28 fund pursuant to section 298A.2A. 2 29 Sec. 5. NEW SECTION. 298A.2A CASH RESERVE FUND. 2 30 1. A cash reserve fund shall be established in the general 2 31 fund. Moneys contained within the cash reserve fund shall not 2 32 be transferred, used, obligated, appropriated, or otherwise 2 33 encumbered except as provided in this section. Interest or 2 34 earnings on moneys deposited in the cash reserve fund shall be 2 35 credited to the general fund. Moneys in the cash reserve fund 3 1 may be allocated to pay legal obligations of the general fund 3 2 when due, when sufficient funds from another source are not 3 3 available, but an amount equal to the amount allocated, with 3 4 the exception of allocations for nonrecurring emergency 3 5 expenditures pursuant to subsection 3, shall be returned to 3 6 the cash reserve fund by the end of each fiscal year. 3 7 2. The budgeted minimum balance maintained in the cash 3 8 reserve fund shall be equal to at least ten percent of a 3 9 school district's authorized budget for the current fiscal 3 10 year. Of this amount, a minimum of five percent of the cash 3 11 reserve fund balance shall be designated for cash flow 3 12 purposes. A school district may designate up to five percent 3 13 of the cash reserve fund balance for nonrecurring emergency 3 14 expenditures. 3 15 3. The moneys in the cash reserve fund designated for 3 16 nonrecurring emergency expenditures shall not be expended for 3 17 the payment of any recurring expenditure or collective 3 18 bargaining agreement or arbitrator's decision negotiated or 3 19 awarded pursuant to chapter 20. 3 20 4. The requirement in subsection 2 relating to maintaining 3 21 a ten percent cash reserve fund balance may be implemented or 3 22 phased in over a period of time commencing on, and expiring no 3 23 later than, three years from the effective date of this Act. 3 24 EXPLANATION 3 25 This bill provides for the establishment of a school bond 3 26 credit enhancement program for school district general 3 27 obligation bonds or loan agreements. The bill provides that 3 28 if a school district which has issued bonds pursuant to Code 3 29 chapter 296 or Code section 298.20 or has entered into a loan 3 30 agreement pursuant to Code section 297.36 fails to pay 3 31 principal or interest when due, upon certification by the 3 32 trustee or paying agent designated pursuant to Code section 3 33 76.10 to the director of revenue and finance, the director 3 34 will withhold and apply from any state appropriation to which 3 35 the school district is entitled, the amount certified to the 4 1 trustee or paying agent to the payment of the principal or 4 2 interest on the bonds or loan agreement of the school district 4 3 then due. The bill provides that the obligation of the 4 4 director to withhold and directly apply moneys does not create 4 5 any legal obligation of the state to pay the principal or 4 6 interest. The bill provides that all state appropriations 4 7 made to a school district shall be subject to these 4 8 provisions. 4 9 The bill also provides that state aid payments will be 4 10 payable in monthly installments beginning on July 15 of a 4 11 school budget year, rather than the September 15 starting date 4 12 provided for in Code section 257.16, and provides that moneys 4 13 received by a school district from the state pursuant to Code 4 14 chapter 257 and deposited in the general fund of the school 4 15 district will be subject to the withholding and payment 4 16 provisions by the director of revenue and finance, with the 4 17 school district obligated to repay the general fund for any 4 18 moneys so applied upon receipt of moneys derived from the levy 4 19 authorized pursuant to Code section 76.2. 4 20 The bill additionally provides that Code section 298.10 4 21 relating to authorization of a school district board of 4 22 directors to levy a tax on all taxable property in the school 4 23 district in order to maintain a cash reserve for a school 4 24 district's general fund will be required, rather than remain 4 25 optional, and that interest or earnings on moneys deposited in 4 26 the cash reserve fund will be credited to the general fund. 4 27 The bill provides that moneys in the cash reserve fund may be 4 28 used to pay legal obligations of the general fund when due 4 29 when sufficient funds from another source are not available. 4 30 The bill provides that an amount equal to the amount so 4 31 allocated, with the exception of allocations for nonrecurring 4 32 emergency expenditures, shall be returned to the cash reserve 4 33 fund by the end of each fiscal year. The bill provides that 4 34 the budgeted minimum balance maintained in the cash reserve 4 35 fund will be equal to at least 10 percent of a school 5 1 district's authorized budget, and that of this amount, a 5 2 minimum of 5 percent of the cash reserve fund balance shall be 5 3 designated for cash flow purposes. The bill further provides 5 4 that a school district may designate up to 5 percent of the 5 5 cash reserve fund balance for nonrecurring emergency 5 6 expenditures, and that moneys in the cash reserve fund shall 5 7 not be expended for the payment of any recurring expenditure 5 8 or collective bargaining agreement or arbitrator's decision 5 9 negotiated or awarded pursuant to Code chapter 20. 5 10 The bill additionally provides that the requirement 5 11 relating to maintaining a 10 percent balance in the cash 5 12 reserve fund may be implemented or phased in over a three-year 5 13 period beginning on the effective date of the bill. 5 14 LSB 2129SS 79 5 15 rn/pj/5
Text: SF00170 Text: SF00172 Text: SF00100 - SF00199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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