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SB 57: "An Act relating to limits in a public school district budget on school and correspondence study program operating expenditures used for administrative expenses; and providing for an effective date."

00                             SENATE BILL NO. 57                                                                          
01 "An Act relating to limits in a public school district budget on school and                                             
02 correspondence study program operating expenditures used for administrative                                             
03 expenses; and providing for an effective date."                                                                         
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  AS 14.17.520(a) is repealed and reenacted to read:                                                   
06            (a)  During each fiscal year, a district shall budget for and spend a maximum of                             
07                 (1)  the following percentages of its adjusted school operating                                         
08       expenditures on the administrative expenses of the district budget:                                               
09            Average school ADM in district    Maximum expenditure                                                        
10            Less than 200                          25 percent                                                            
11            At least 200 but not more than 300     20 percent                                                            
12            Over 300 but not more than 400         15 percent                                                            
13            Over 400                               10 percent; and                                                       
14                 (2)  five percent of the amount received by the district under                                          
01       AS 14.17.430 for the administrative expenses of the district's correspondence study                               
02       programs, regardless of size.                                                                                     
03    * Sec. 2.  AS 14.17.520(c) is amended to read:                                                                     
04            (c)  The commissioner shall review the annual audit of each district for                                     
05       compliance with the expenditure limits [REQUIREMENTS] of (a) of this section.  If                             
06       the commissioner determines that a district exceeds [DOES NOT MEET] those limits                          
07       [REQUIREMENTS], the commissioner shall advise the district of the determination,                                  
08       calculate the amount of the excess [DEFICIENCY], and deduct that amount from state                            
09       aid paid to the district for the current fiscal year.  A deduction in state aid required                          
10       under this subsection begins with the payment for the second full month after the                                 
11       determination, unless a waiver has been granted by the board under (d) of this section.                           
12    * Sec. 3.  AS 14.17.520(d) is amended to read:                                                                     
13            (d)  A district that has been determined by the commissioner to be out of                                    
14       compliance with the expenditure limits [REQUIREMENTS] of this section may,                                    
15       within 20 days after [OF] the commissioner's determination, request a waiver by the                           
16       board of the imposition by the commissioner of any reduction in state aid payments                                
17       under (b) or (c) of this section.  The request must be in writing and must include an                             
18       analysis of the reasons and causes for the district's inability to comply with the                                
19       expenditure limits [REQUIREMENTS] of this section.  The board may grant the                                   
20       waiver if the board determines that the district's failure to meet the expenditure limits                     
21       [REQUIREMENTS] of this section was due to circumstances beyond the control of                                     
22       the district.  The request must also be submitted to the Legislative Budget and Audit                             
23       Committee, which shall review the district's request and forward the committee's                                  
24       recommendations on it to the board.                                                                               
25    * Sec. 4.  AS 14.17.520(f) is repealed and reenacted to read:                                                      
26            (f)  In this section,                                                                                        
27                 (1)  "adjusted school operating expenditures" means the total school                                    
28       operating expenditures for the district less school operating expenditures for district                           
29       correspondence schools;                                                                                           
30                 (2)  "ADM" has the meaning given in AS 14.17.990;                                                       
31                 (3)  "administrative expenses" includes indirect expenditures for                                       
01       instructional services and excludes expenditures for teachers, pupil support, utilities,                          
02       and maintenance; the term may be further defined by the board by regulation as                                    
03       necessary for implementation of this section; in this paragraph, "indirect expenditures"                          
04       means overhead costs not readily allocated to specific activities.                                                
05    * Sec. 5.  The uncodified law of the State of Alaska is amended by adding a new section to                         
06 read:                                                                                                                   
07       REVISOR'S INSTRUCTION.  The revisor of statutes is requested to substitute                                        
08 "Maximum expenditures for administration" for "Minimum expenditures for instruction" in                                 
09 the catchline of AS 14.17.520.                                                                                          
10    * Sec. 6.  This Act takes effect July 1, 2005.