HB2457 - 442R - House Bill Summary

House of Representatives

HB 2457

schools; interest; classroom enhancement

Sponsors: Representative Marsh

X	Committee on Education
	Committee on Appropriations
	Caucus and COW
	As Passed the House

HB 2457 allows school district governing boards to budget the interest earned on maintenance and operations monies for classroom enhancement.

History

School budgets contain a section called maintenance and operations (M&O), the budgeted amount related to the daily operations of a school. Allowable uses of M&O monies can be found in the Uniform System of Financial Records (USFR), the system of financial reporting required by statute that schools and school districts utilize.

The county treasurer is charged with receiving and holding school district monies in accounts. School district monies are pooled by the county treasurer and the interest earned on the monies is apportioned at least quarterly to the appropriate school district based on an average monthly balance. By the 15^th calendar day of each month, the county treasurer must inform the county school superintendent of the end-of-month balances of each school district account. By August 1 of each year, the county school superintendent is required to include the anticipated interest earned on invested monies in the estimate of the amount of school monies available for the ensuing year.

Currently, the interest earned on the invested monies is used by the county school superintendent to help offset the property tax levied to support the school district.

Provisions

· Allows school district governing boards to use the interest earned on M&O monies for classroom enhancement.

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· 44th Legislature Analyst Initials _______