00SENATE BILL NO. 193                                                                                                     
01 "An Act relating to a limitation on administrative expenditures of school districts;                                    
02 and providing for an effective date."                                                                                   
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 14.17 is amended by adding a new section to read:                                                   
05  Sec. 14.17.085.  Maximum expenditure for administration.  (a)  A district                                             
06 may not budget for or spend more than $950 per ADM multiplied by the area cost                                          
07 differential under AS 14.17.051 in each fiscal year on the combined school                                              
08 administration and district administration components of the district budget.                                           
09  (b)  The commissioner shall reject a district budget that does not comply with                                        
10 (a) of this section and, unless a waiver has been granted by the board under (d) of this                                
11 section, shall withhold payments of state aid from that district, beginning with the                                    
12 payment for the second full month after rejection and continuing until the school board                                 
13 of the district revises the district budget to comply with (a) of this section.                                         
14  (c)  The commissioner shall review the annual audit of each district for                                              

01 compliance with the expenditure requirements of (a) of this section.  If the                                            
02 commissioner determines that a district does not meet those requirements, the                                           
03 commissioner shall advise the district of the determination and calculate the percentage                                
04 of over expenditure and deduct that percentage from state aid paid to the district for                                  
05 the current fiscal year, beginning with the payment for the second full month after the                                 
06 determination, unless a waiver has been granted by the board under (d) of this section.                                 
07  (d)  A district that has been determined by the commissioner to be out of                                             
08 compliance with the requirements of this section may, within 20 days of the                                             
09 commissioner's determination, request a waiver by the board of the imposition by the                                    
10 commissioner of any reduction in state aid payments under (b) or (c) of this section.                                   
11 The request must be submitted to the Legislative Budget and Audit Committee and                                         
12 must be in writing and include an analysis of the reasons and causes for the district's                                 
13 inability to comply with the requirements of this section.  The Legislative Budget and                                  
14 Audit Committee shall review the district's request and forward it, along with the                                      
15 committee's recommendations on it, to the board, which shall either grant or deny the                                   
16 waiver.                                                                                                                 
17  (e)  The commissioner shall submit an annual report on actions taken by the                                           
18 commissioner or the board under this section to the Legislative Budget and Audit                                        
19 Committee by April 15 of each year.                                                                                     
20    * Sec. 2.  This Act takes effect July 1, 1997.