00 SENATE BILL NO. 267 01 "An Act relating to powers and duties of the Legislative Budget and Audit Committee; 02 relating to public school financial information and audits; and establishing a public 03 school financial data Internet website." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05  * Section 1. AS 14.03.078(a) is amended to read: 06 (a) The department shall provide to the legislature and school districts by 07 February 15 of each year by electronic means an annual report regarding the progress 08 of each school and school district toward high academic performance by all students. 09 The report required under this section must include 10 (1) information described under AS 14.03.120; 11 (2) progress of the department 12 (A) toward implementing the school accountability provisions 13 of AS 14.03.123; and 14 (B) in assisting high schools to become accredited; 01 (3) a description of the resources provided to each school and school 02 district for coordinated school improvement activities and staff training in each school 03 and school district; 04 (4) each school district's and each school's progress in aligning 05 curriculum with state education performance standards; 06 (5) a description of the efforts by the department to assist a public 07 school or district that receives a low performance designation under AS 14.03.123; 08 (6) a description of intervention efforts by each school district and 09 school for students who are not meeting state performance standards; 10 (7) the number and percentage of turnover in certificated personnel and 11 superintendents; 12 (8) a summary of the categories of certificated administrative 13 employees employed by each school district that includes the ratio of 14 (A) the number of certificated administrative employees in 15 each category employed by each school district compared to the number of 16 students enrolled in the school district on October 1 of the previous year; 17 (B) the total number of certificated administrative employees 18 employed by each school district compared to the total number of teachers 19 employed by the school district on October 1 of the previous year; and 20 (C) the total number of teachers employed by each school 21 district compared to the total number of students enrolled in the school district 22 on October 1 of the previous year; 23 (9) the progress made to implement the reading intervention programs 24 established under AS 14.30.760 - 14.30.780, including data on how school districts are 25 using in-service days for culturally responsive professional development in reading 26 instruction; [AND] 27 (10) the effectiveness and participation rates of the parents as teachers 28 program established under AS 14.03.420, including measures of efficiency and 29 effectiveness that demonstrate the effects of the program on school readiness; and 30 (11) a link to the public school financial data Internet website of  31 the Legislative Budget and Audit Committee established under AS 24.20.207. 01  * Sec. 2. AS 14.14.050(a) is amended to read: 02 (a) The school board in each school district shall, before October 1 of each 03 year, provide for an audit of all school accounts for the school year ending the 04 preceding June 30. To make the audit the school board shall contract with a public 05 accountant who has no personal interest, direct or indirect, in the fiscal affairs of the 06 district. One certified copy of the audit shall be filed with the Legislative Budget and  07 Audit Committee, one certified copy shall be filed with the commissioner, and one 08 certified copy shall be posted in a public place at the principal administrative office of 09 the district. 10  * Sec. 3. AS 14.14.050(b) is amended to read: 11 (b) The audit shall conform in form to requirements established by the 12 Legislative Budget and Audit Committee. The Legislative Budget and Audit  13 Committee shall inform the commissioner if a school district fails to file a  14 certified copy of the audit with the Legislative Budget and Audit Committee 15 [COMMISSIONER]. The commissioner shall withhold all payments of state funds 16 after November 15 to a school district that fails to file a certified copy of the audit with 17 the Legislative Budget and Audit Committee [DEPARTMENT]. 18  * Sec. 4. AS 14.14.050(c) is amended to read: 19 (c) The Legislative Budget and Audit Committee [COMMISSIONER] may 20 provide for a reaudit or an audit check in a school district if [IN] the Legislative  21 Budget and Audit Committee determines [COMMISSIONER'S JUDGMENT] it is 22 necessary to substantiate the reported expenditures. 23  * Sec. 5. AS 14.17.505 is amended to read: 24 Sec. 14.17.505. Fund balance in school operating fund. (a) A district may 25 not accumulate in a fiscal year an unreserved portion of its year-end fund balance in its 26 school operating fund, as categorized by the uniform revenue and expenditure  27 fund codes and function codes described in AS 24.20.207(a)(1)(B) [DEFINED BY 28 DEPARTMENT REGULATIONS], that is greater than 10 percent of its expenditures 29 for that fiscal year. 30 (b) The Legislative Budget and Audit Committee [DEPARTMENT] shall 31 review each district's annual audit under AS 14.14.050 for the preceding fiscal year to 01 ascertain its year-end operating fund balance. The Legislative Budget and Audit  02 Committee shall determine the amount by which the unreserved portion of that 03 balance exceeds the amount permitted in (a) of this section, and shall inform the  04 department of the amount. The department shall deduct the amount [BE 05 DEDUCTED] from the state aid that would otherwise be paid to the district in the 06 current fiscal year. 07  * Sec. 6. AS 24.20 is amended by adding a new section to read: 08 Sec. 24.20.207. Public school financial data Internet website. (a) The 09 Legislative Budget and Audit Committee shall develop, operate, and maintain a 10 searchable Internet website that provides financial information available from each 11 school district's annual audit filed under AS 14.14.050(a). The committee shall, not 12 later than February 15 of each year, provide on the Internet website, at a minimum, 13 (1) financial information from the audits for each of the preceding 10 14 fiscal years; the financial information must be 15 (A) provided in the form of tables, charts, graphs, or other 16 formats that are easily understood; 17 (B) categorized using uniform revenue and expenditure fund 18 codes and function codes; and 19 (C) sortable by fiscal year, school district, school, fund code, 20 and function code; 21 (2) reference materials to assist the public in understanding the 22 financial information provided on the website, including a description of the fund 23 codes and function codes used; 24 (3) a comprehensive report of each school district's operating fund 25 budget and actual operating fund expenditures, including 26 (A) the committee's determination of the school district's year- 27 end operating fund balance under AS 14.17.505(b) and the amount by which 28 the unreserved portion of that balance exceeds the amount permitted under 29 AS 14.17.505(a); 30 (B) all reserved or committed funds, including encumbrances, 31 inventory, and prepaid expenses; and 01 (C) funds held in reserve for self-insurance or risk 02 management; and 03 (4) a tool that allows a user of the Internet website to compare 04 (A) the school district's operating fund expenditures by 05 function code; 06 (B) a school's per pupil expenditures with the per pupil 07 expenditures of other schools in a district; and 08 (C) the school district's operating fund expenditures 09 (i) for instructional functions with the school district's 10 operating fund expenditures for noninstructional functions; and 11 (ii) for certificated personnel with the school district's 12 operating fund expenditures for classified personnel. 13 (b) The uniform revenue and expenditure fund codes and function codes 14 described in (a)(1)(B) of this section must, at a minimum, categorize the following 15 costs by specific fund code or function code: 16 (1) district administration, including specific fund codes and function 17 codes for 18 (A) executive administration; 19 (B) business services; and 20 (C) centralized data processing; 21 (2) technology, including specific fund codes and function codes for 22 (A) hardware; 23 (B) software licensing; 24 (C) instructional technology support; and 25 (D) infrastructure maintenance; 26 (3) utilities, including specific fund codes and function codes for 27 (A) heating oil; 28 (B) electricity; 29 (C) water; and 30 (D) sewer; 31 (4) building maintenance, including specific fund codes and function 01 codes for 02 (A) routine repairs; 03 (B) custodial services; 04 (C) groundskeeping; and 05 (D) long-term facility preservation efforts; and 06 (5) operations, including specific fund codes and function codes for 07 (A) employee base salaries; 08 (B) the school district's contribution to employee health care 09 insurance premiums; 10 (C) the school district's contribution to employee health savings 11 accounts; 12 (D) other employee benefits; 13 (E) property insurance; 14 (F) liability insurance; 15 (G) workers' compensation insurance; 16 (H) motor vehicle insurance; 17 (I) building rental expenses; 18 (J) custodial and maintenance supplies; and 19 (K) the school district's proportionate share of the payments 20 made by the state for the teachers' retirement system and the public employees' 21 retirement system. 22 (c) The Internet website and the materials posted on the Internet website must 23 be accessible to the public at no cost. 24 (d) Nothing in this section requires disclosure of information that is 25 confidential under state or federal law. However, the committee shall provide 26 aggregated or summarized information describing confidential revenue and 27 expenditures if the aggregated or summarized information protects confidentiality. 28  * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 TRANSITION: FINANCIAL INFORMATION FOR PRECEDING FISCAL YEARS. 31 (a) Notwithstanding the requirement in AS 24.20.207(a)(1), enacted by sec. 6 of this Act, that 01 the Legislative Budget and Audit Committee provide on the Internet website established 02 under AS 24.20.207(a), enacted by sec. 6 of this Act, financial information available from 03 each school district's annual audit filed under AS 14.14.050(a) for each of the preceding 10 04 fiscal years, the committee shall 05 (1) not later than February 15, 2028, provide the information for the preceding 06 fiscal year; 07 (2) not later than February 15, 2029, provide the information for the preceding 08 two fiscal years; 09 (3) not later than February 15, 2030, provide the information for the preceding 10 three fiscal years; 11 (4) not later than February 15, 2031, provide the information for the preceding 12 four fiscal years; 13 (5) not later than February 15, 2032, provide the information for the preceding 14 five fiscal years; 15 (6) not later than February 15, 2033, provide the information for the preceding 16 six fiscal years; 17 (7) not later than February 15, 2034, provide the information for the preceding 18 seven fiscal years; 19 (8) not later than February 15, 2035, provide the information for the preceding 20 eight fiscal years; and 21 (9) not later than February 15, 2036, provide the information for the preceding 22 nine fiscal years.