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 AS 14.17.520(a) is repealed and reenacted to read: 06 (a) During each fiscal year, a district shall budget for and spend a maximum of 07 (1) the following percentages of its adjusted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.