SB 361-FN – AS AMENDED BY THE SENATE
02/23/06 0953s
2006 SESSION
04/10
SENATE BILL 361-FN
AN ACT relative to school district contingency funds.
This bill allows a school district to establish a nonlapsing fund of up to 2 percent of the prior year’s annual budget expenses to meet general operating or unanticipated expenses.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
02/23/06 0953s
06-2618
04/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT relative to school district contingency funds.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 School Money; Contingency Fund. Amend RSA 198:4-b to read as follows:
198:4-b Contingency Fund. Every school district annually by an article in the warrant, and the governing body of a city upon recommendation of the school board, when the operation of the schools is by a department of the city, may establish a contingency fund of up to 2 percent of the prior year’s annual budget expenses to meet the cost of general operating or unanticipated expenses that may arise during the year. At no time shall the balance of the fund exceed 4 percent of the prior year’s annual budget expenses. Moneys in this fund shall be nonlapsing and may be expended in any fiscal year. A detailed report of all expenditures from the contingency fund shall be made annually by the school board and published with their report.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
06-2618
Amended 3/17/06
SB 361 FISCAL NOTE
AN ACT relative to school district contingency funds.
FISCAL IMPACT:
The Department of Education and the New Hampshire Municipal Association state this bill, as amended by the Senate (Amendment #2006-0953s), will have an indeterminable fiscal impact on local expenditures and revenues in FY 2006 and each year thereafter. There will be no fiscal impact on state and county revenue or expenditures.
METHODOLOGY:
The New Hampshire Municipal Association assumed this bill will impact local school expenditures and revenues but is not able to determine the amount or direction.
The Department of Education indicated that under this bill, school districts could transfer unexpended appropriations into a non-lapsing contingency fund, which is limited to 4% of the prior years budgeted expenditures. The Department assumed no voter approval would be needed to expend these funds in subsequent years. The Department indicated under current law, school districts may include a contingency fund in their annual budget, however, these amounts lapse to the fund balance at the end of the year.
The New Hampshire Association of Counties states this bill will have no fiscal impact on county revenue or expenditures.