Session Law

Identifying Information:L. 2003 ch. 116
Other Identifying Information:2003 Substitute for Senate Bill 83
Tax Type:Other
Brief Description:An Act concerning school districts; relating to certain funds; enacting the school budgeting best practices reform act; amending K.S.A. 12-1663, 12-2615, 44-505c, 72-4141, 72- 5390, 72-6409, 72-6425, 72-6428, 72-8209, 72-8223, 72-8302, 72-8316, 72-8317, 72- 8415a, 72-8415b, 75-6110, 79-2926 and 79-2927 and repealing the existing sections; also repealing K.S.A. 72-3703.
Keywords:


Body:

CHAPTER 116

Substitute for SENATE BILL No. 83

(Amended by Chapter 158)


An Act concerning school districts; relating to certain funds; enacting the school budgeting

best practices reform act; amending K.S.A. 12-1663, 12-2615, 44-505c, 72-4141, 72-

5390, 72-6409, 72-6425, 72-6428, 72-8209, 72-8223, 72-8302, 72-8316, 72-8317, 72-

8415a, 72-8415b, 75-6110, 79-2926 and 79-2927 and repealing the existing sections; also


repealing K.S.A. 72-3703.


Be it enacted by the Legislature of the State of Kansas:

New Section 1. (a) There is hereby established in every school dis-

trict a special liability expense fund. Moneys in such fund shall be used

to:

(1) Pay the cost of providing for its defense and the defense of em-

ployees pursuant to the Kansas tort claims act and for the payment of

claims and other direct and indirect costs resulting from the implemen-

tation of such act; and

(2) pay judgments rendered against the district.

(b) The district shall credit to the special liability expense fund any

moneys received by the district from any source which may be lawfully

utilized for the purposes specified by this section including the proceeds

of tax levies hereinafter authorized and provided. Any balance remaining

in the special liability expense fund at the end of the budget year shall

be carried forward into that fund for succeeding budget years. Such fund

shall not be subject to the provisions of K.S.A. 79-2925 through 79-2937,

and amendments thereto. In making the budget of the district, the

amounts credited to and the amount on hand in such special fund, and

the amount expended therefrom, shall be included in the annual budget

for the information of the residents of the district. Interest earned on the

investment of moneys in any such fund shall be credited to that fund.

(c) Whenever the governing body of any school district determines

that moneys from other sources will be insufficient to pay such costs, the

governing body is hereby authorized to levy an annual tax upon all taxable

tangible property within the district in an amount determined by the

governing body to be necessary for such purpose and to pay a portion of

the principal and interest on bonds issued by cities under the authority

of K.S.A. 12-1774, and amendments thereto, for the financing of rede-

velopment projects upon property located in such school district.

New Sec. 2. (a) There is hereby established in every school district

a special reserve fund. Moneys in such fund shall be used to:

(1) Pay claims, judgments, expenses and other purposes relating to

health care services, disability income benefits and group life insurance

benefits as authorized by K.S.A. 72-8415a, and amendments thereto;

(2) pay costs relating to uninsured losses; and

(3) pay the cost of workers compensation insurance and workers com-

pensation claims, awards, expenses and other purposes authorized by the

workers compensation act.

(b) Any balance remaining in the special reserve fund at the end of

the budget year shall be carried forward into that reserve fund for suc-

ceeding budget years. Such fund shall not be subject to the provisions of

K.S.A. 79-2925 through 79-2937, and amendments thereto. In preparing

the budget of such school district, the amounts credited to and the

amount on hand in the special reserve fund, and the amount expended

therefrom shall be included in the annual budget for the information of

the residents of the school district. Interest earned on the investment of

moneys in any such fund shall be credited to that fund.

New Sec. 3. (a) There is hereby established in every school district

a textbook and student materials revolving fund. Moneys in such fund

shall be used to:

(1) Purchase any items designated in K.S.A. 72-5389, and amend-

ments thereto;

(2) pay the cost of materials or other items used in curricular, extra-

curricular or other school-related activities; and

(3) purchase textbooks as authorized by K.S.A. 72-4141, and amend-

ments thereto.

(b) Any balance remaining in the textbook and student materials re-

volving fund at the end of the budget year shall be carried forward into

that fund for succeeding budget years. Such fund shall not be subject to

the provisions of K.S.A. 79-2925 through 79-2937, and amendments

thereto. In preparing the budget of such school district, the amounts

credited to and the amount on hand in the textbook and student materials

revolving fund, and the amount expended therefrom shall be included in

the annual budget for the information of the residents of the school dis-

trict. Interest earned on the investment of moneys in any such fund shall

be credited to that fund.

Sec. 4. K.S.A. 12-2615 is hereby amended to read as follows: 12-

2615. (a) The governing body of any city, county or school district may

establish by resolution a risk management reserve fund for the purpose

of providing moneys to reimburse such city, county or school district, in

whole or in part, from insurable losses not otherwise insured pay the costs

relating to any uninsured loss. The governing body of a city or county

may pay such costs from the risk management reserve fund of the city or

county. The board of education of any school district may pay such costs

from the special reserve fund of the district. The resolution establishing

such risk management reserve fund shall prescribe the purposes for which

moneys in the fund may be used, and any expenditure therefrom shall

require the approval of the governing body. Moneys may be paid into

such risk management reserve fund or special reserve fund from any

source which may be lawfully utilized for such purposes, including trans-

fers from the general fund, from any special liability expense fund estab-

lished in accordance with the provisions of K.S.A. 75-6110, and amend-

ments thereto, or from any other fund or grant program account of the

governmental unit in reasonable proportion to the estimated cost of self

insuring the risk losses covered by such reserve fund. Such fund funds.

Such funds shall not be subject to the provisions of K.S.A. 79-2925 to 79-

2937, inclusive, and acts amendatory thereof or supplemental thereto,

except that through 79-2937, and amendments thereto. In making the

budget of such city, county or school district, the amounts credited to and

the amount on hand in such reserve fund, and the amount expended

therefrom, shall be included in the annual budget for the information of

the residents. Interest earned on the investment of moneys in such re-

serve fund shall be credited to such fund.

(b) If the governing body of any city, county or school district shall

determine determines on an actuarial basis that money which has been

credited to such fund, or any part thereof, is no longer needed for the

purposes for which it was established, said the governing body may trans-

fer such amount not needed to the funds or accounts from which the

money was received. Any money so transferred shall be budgeted in ac-

cordance with the provisions of K.S.A. 79-2925 to 79-2937, inclusive, and

acts amendatory thereof or supplemental through 79-2937, and amend-

ments thereto.

Sec. 5. K.S.A. 44-505c is hereby amended to read as follows: 44-

505c. Any city, county, school district or other political subdivision or

municipality is hereby authorized to pay the cost of workmen's compen-

sation coverage for its employees as provided by this act and may pay

such costs from the various funds from which compensation is paid to its

employees. School districts may pay such costs from the special reserve

fund of the school district. Any such city, county, political subdivision or

municipality, except a school district, may levy annually at the time of its

levy of taxes an additional tax for such purpose and, in the case of cities,

counties and school districts, for the purpose of paying a portion of the

principal and interest on bonds issued by a city under the authority of

K.S.A. 12-1774, and amendments thereto, which, together with any other

fund available shall be sufficient to provide the cost thereof. Any taxing

subdivision authorized to levy a tax under this section, in lieu of levying

such tax, may pay such costs from any employee benefits contribution

fund established pursuant to K.S.A. 12-16,102, and amendments thereto.

Counties shall provide for coverage of district court officers and employ-

ees whose total salary is payable by counties. Such tax shall not be subject

to any tax levy limit prescribed by article 19 of chapter 79 of the Kansas

Statutes Annotated, or acts amendatory thereof or supplemental thereto.

Taxes levied by counties and cities under the authority of this act shall be

exempt from the limitations imposed under the provisions of K.S.A. 79-

5001 to 79-5016, inclusive, and amendments thereto.

Sec. 6. K.S.A. 72-4141 is hereby amended to read as follows: 72-

4141. The board of education of any school district may establish a school

textbook rental plan for such grades as are maintained by the district

whereby such board shall purchase school textbooks to be used by the

pupils upon the payment by such pupils of a rental fee. Moneys received

by the board of education under this section shall be deposited in the

textbook and student materials revolving fund of the school district.

Sec. 7. K.S.A. 72-5390 is hereby amended to read as follows: 72-

5390. (a) The board of education of any school district may prescribe,

assess and collect fees and supplemental charges for:

(1) The use, rental or purchase by pupils of any of the items desig-

nated in K.S.A. 72-5389, and amendments thereto, to offset, in part or in

total, the expense of purchasing such items; and

(2) participation in activities, or the use of facilities, materials and

equipment, which participation or use is not mandatory, but optional to

pupils, whether incidental to curricular, extracurricular or other school-

related activities.

(b) Except as otherwise provided in this section, Moneys received by

a board of education under this section shall be deposited in the general

textbook and student materials revolving fund of the school district and

shall be considered reimbursements to the district for the purpose of the

school district finance and quality performance act and may be expended

whether the same have been budgeted or not and amounts so expended

shall not be considered operating expenses.

(c) Moneys received by a board of education under this section for

the use, rental or purchase by pupils of any of the items designated in

paragraph (a) of K.S.A. 72-5389, and amendments thereto, may be de-

posited in the revolving fund established by the board for the purpose of

purchasing textbooks under the provisions of article 41 of chapter 72 of

Kansas Statutes Annotated, and the board may expend moneys from such

revolving fund for the purpose of purchasing the items.

(d) The board of education may establish a revolving fund for the

purpose of purchasing any of the items designated in paragraphs (b)

through (e) of K.S.A. 72-5389, and amendments thereto, and moneys

received by the board of education under this section for use, rental or

purchase by pupils of any of the items may be deposited in such revolving

fund.

Sec. 8. K.S.A. 72-6409 is hereby amended to read as follows: 72-

6409. (a) ``General fund'' means the fund of a district from which oper-

ating expenses are paid and in which is deposited the proceeds from the

tax levied under K.S.A. 72-6431, and amendments thereto, all amounts

of general state aid under this act, payments under K.S.A. 72-7105a, and

amendments thereto, payments of federal funds made available under

the provisions of title I of public law 874, except amounts received for

assistance in cases of major disaster and amounts received under the low-

rent housing program, and such other moneys as are provided by law.

(b) ``Operating expenses'' means the total expenditures and lawful

transfers from the general fund of a district during a school year for all

purposes, except expenditures for the purposes specified in K.S.A. 72-

6430, and amendments thereto.

(c) ``General fund budget'' means the amount budgeted for operating

expenses in the general fund of a district.

(d) ``Budget per pupil'' means the general fund budget of a district

divided by the enrollment of the district.

(e) ``Program weighted fund'' means and includes the following funds

of a district: Transportation fund, Vocational education fund, and bilin-

gual education fund.

(f) ``Categorical fund'' means and includes the following funds of a

district: Special education fund, food service fund, driver training fund,

adult education fund, adult supplementary education fund, area voca-

tional school fund, inservice education fund, parent education program

fund, summer program fund, extraordinary school program fund, and

educational excellence grant program fund.

Sec. 9. K.S.A. 72-6425 is hereby amended to read as follows: 72-

6425. (a) There is hereby established in every district a fund which shall

be called the transportation fund which fund shall consist of all moneys

deposited therein or transferred thereto according to law. All moneys

received by the district for pupil transportation shall be credited to the

transportation general fund. The expenses of a district attributable to

pupil transportation shall be paid from the transportation general fund.

Any district may transfer moneys from its capital outlay fund to its trans-

portation fund for the purpose of purchasing buses and bus equipment.

If a board determines that any moneys which have been transferred to

its transportation fund from its capital outlay fund are not needed for the

purchase of buses or bus equipment, the board may transfer the moneys

back to the capital outlay fund.

(b) The provisions of this section shall take effect and be in force

from and after July 1, 1992.

(b) The transportation fund of each district is hereby abolished. Any

moneys in such fund shall be transferred and credited to the general fund

of the school district.

Sec. 10. K.S.A. 72-6428 is hereby amended to read as follows: 72-

6428. (a) Any lawful transfer of moneys from the general fund of a district

to any other fund shall be an operating expense in the year the transfer

is made. The board of any district may transfer moneys from the general

fund to any categorical fund of the district in any school year. The board

of any district may transfer moneys from the general fund to any program

weighted fund of the district in any school year, subject to the following

conditions:

(1) No board shall transfer moneys in any amount from the general

fund to a program weighted fund prior to maturation of the obligation of

the fund necessitating the transfer.

(2) The board may transfer moneys in an amount not to exceed the

amount of the obligation of the program weighted fund necessitating the

transfer.

(b) The board of any district may transfer moneys from the general

fund to the technology education fund of the district in any school year,

subject to the conditions imposed upon transferability of moneys from

the general fund to program weighted funds of the district.

(c) The board of any district may transfer moneys from the general

fund to the contingency reserve fund of the district in any school year,

subject to the limitations imposed upon the amount authorized to be

maintained in the contingency reserve fund under K.S.A. 72-6426, and

amendments thereto.

(d) (c) The board of any district may transfer moneys from the general

fund to the capital outlay fund of the district in any school year, subject

to the following conditions:

(1) No board shall transfer moneys in any amount from the general

fund to the capital outlay fund prior to June 1 in any school year.

(2) The board of any of the districts with 10,000 or more enrollment

may transfer moneys in an amount not to exceed an amount equal to 1%

of the general fund budget.

(3) The board of any district, other than the districts with 10,000 or

more enrollment, may transfer moneys in an amount not to exceed an

amount equal to 2% of the general fund budget.

(4) No board shall transfer moneys in any amount from the general

fund to the capital outlay fund in any school year commencing after June

30, 1993, unless such board, in its adopted budget for such year, shall

have budgeted a capital outlay levy at (A) not less than a 3.5 mill rate or

(B) not less than the mill rate necessary to produce the same amount of

money that would have been produced by a 3.5 mill rate in the 1988-89

school year, whichever of (A) or (B) is the greater mill rate.

(e) Any district may make capital outlay expenditures from the gen-

eral fund for acquisition of equipment and repair of school buildings.

(f) The provisions of this section shall take effect and be in force from

and after July 1, 1992.

(d) The board of any district may transfer moneys from the general

fund to the special reserve fund.

(e) The board of any district may transfer moneys from the general

fund to the special liability expense fund.

(f) The board of any district may transfer moneys from the general

fund to the textbook and student materials revolving fund.

Sec. 11. K.S.A. 72-8209 is hereby amended to read as follows: 72-

8209. Whenever any judgment rendered against any school district shall

become becomes final, the governing body thereof shall make a tax levy

board of education may levy a tax at the first tax levying period after such

judgment becomes final, sufficient to pay such amount and for the pur-

pose of paying a portion of the principal and interest on bonds issued by

cities under the authority of K.S.A. 12-1774, and amendments thereto,

for the financing of redevelopment projects upon property located within

the school district and such tax levy may be levied outside of tax levy

limitations prescribed by law. Such tax shall be collected as other school

district taxes, but no execution shall issue on such judgment against the

school district. In case the governing body neglects to levy the tax as

hereinbefore provided, then the judgment creditor may have and recover

a judgment against the officer or officers so in default, for the amount

due him or her on such judgment, with costs. Revenue from such levy

shall be deposited in the special liability expense fund of the school district.

Sec. 12. K.S.A. 72-8302 is hereby amended to read as follows: 72-

8302. (a) The board of education of a school district may provide or

furnish transportation for pupils who are enrolled in the school district

to or from any school of the school district or to or from any school of

another school district attended by such pupils in accordance with the

provisions of an agreement entered into under authority of K.S.A. 72-

8233, and amendments thereto.

(b) (1) When any or all of the conditions specified in this provision

exist, the board of education of a school district shall provide or furnish

transportation for pupils who reside in the school district and who attend

any school of the school district or who attend any school of another

school district in accordance with the provisions of an agreement entered

into under authority of K.S.A. 72-8233, and amendments thereto. The

conditions which apply to the requirements of this provision are as fol-

lows:

(A) The residence of the pupil is inside or outside the corporate limits

of a city, the school building attended is outside the corporate limits of a

city and the school building attended is more than 21/2 miles by the usually

traveled road from the residence of the pupil; or

(B) the residence of the pupil is outside the corporate limits of a city,

the school building attended is inside the corporate limits of a city and

the school building attended is more than 21/2 miles by the usually traveled

road from the residence of the pupil; or

(C) the residence of the pupil is inside the corporate limits of one

city, the school building attended is inside the corporate limits of a dif-

ferent city and the school building attended is more than 21/2 miles by

the usually traveled road from the residence of the pupil.

(2) The provisions of this subsection are subject to the provisions of

subsections (c) and (d).

(c) The board of education of every school district is authorized to

adopt rules and regulations to govern the conduct, control and discipline

of all pupils while being transported in school buses. The board may

suspend or revoke the transportation privilege or entitlement of any pupil

who violates any rules and regulations adopted by the board under au-

thority of this subsection.

(d) The board of education of every school district may suspend or

revoke the transportation privilege or entitlement of any pupil who is

detained at school at the conclusion of the school day for violation of any

rules and regulations governing pupil conduct or for disobedience of an

order of a teacher or other school authority. Suspension or revocation of

the transportation privilege or entitlement of any pupil specified in this

subsection shall be limited to the school day or days on which the pupil

is detained at school. The provisions of this subsection do not apply to

any pupil who has been determined to be an exceptional child, except

gifted children, under the provisions of the special education for excep-

tional children act.

(e) (1) Subject to the limitations specified in this subsection, the

board of education of any school district may prescribe and collect fees

to offset, totally or in part, the costs incurred for the provision or fur-

nishing of transportation for pupils. The limitations which apply to the

authorization granted by this subsection are as follows:

(A) Fees for the provision or furnishing of transportation for pupils

shall be prescribed and collected only to recover the costs incurred as a

result of and directly attributable to the provision or furnishing of trans-

portation for pupils and only to the extent that such costs are not reim-

bursed from any other source provided by law;

(B) fees for the provision or furnishing of transportation may not be

assessed against or collected from any pupil who is counted in determin-

ing the transportation weighting of the school district under the provisions

of the school district finance and quality performance act or any pupil

who is determined to be a child with disabilities under the provisions of

the special education for exceptional children act or any pupil who is

eligible for free or reduced price meals under the national school lunch

act or any pupil who is entitled to transportation under the provisions of

subsection (a) of K.S.A. 72-8306, and amendments thereto, and who re-

sides 21/2 miles or more by the regular route of a school bus from the

school attended;

(C) fees for the provision or furnishing of transportation for pupils in

accordance with the provisions of an agreement entered into under au-

thority of K.S.A. 72-8233 or 72-8307, and amendments thereto, shall be

controlled by the provisions of the agreement.

(2) All moneys received by a school district from fees collected under

this subsection shall be deposited in the transportation general fund of

the district.

Sec. 13. K.S.A. 72-8316 is hereby amended to read as follows: 72-

8316. (a) Any board of education, pursuant to a policy developed and

adopted by it, may provide for the use of district-owned or leased school

buses when such buses are not being used for regularly required school

purposes. The policy may provide for:

(1) (A) Transporting parents and other adults to or from school-re-

lated functions or activities, (B) transporting pupils to or from functions

or activities sponsored by organizations, the membership of which is prin-

cipally composed of children of school age, and (C) transporting persons

engaged in field trips in connection with their participation in an adult

education program maintained by the transporting school district or by

any other school district, within or outside the boundaries of the trans-

porting school district; and

(2) contracting with (A) the governing body of any township, city or

county for transportation of individuals, groups or organizations, (B) the

governing authority of any nonpublic school for transportation of pupils

attending such nonpublic school to or from interschool or intraschool

functions or activities, (C) the board of trustees of any community college

for transportation of students enrolled in such community college to or

from attendance at class at the community college or to and from func-

tions or activities of the community college, (D) a public recreation com-

mission established and operated under the laws of this state, for any

purposes related to the operation of the recreation commission and all

programs and services thereof, (E) the board of education of any other

school district for transportation, on a cooperative and shared-cost basis,

of pupils, school personnel, parents and other adults to or from school-

related functions or activities, or (F) a four-year college or university, area

vocational school or area vocational-technical school for transportation of

students to or from attendance at class at the four-year college or uni-

versity, area vocational school or area vocational-technical school or for

transportation of students, alumni and other members of the public to or

from functions or activities of the four-year college or university, area

vocational school or area vocational-technical school.

(b) The costs related to the use of school buses under authority of

this section shall not be considered in determining the transportation

weighting of a school district under article 64 of chapter 72 of Kansas

Statutes Annotated.

(c) Transportation fees may be charged by the board to offset, totally

or in part, the costs incurred for the use of school buses under authority

of this section.

(d) Any revenues received by a board of education as transportation

fees or under any contract entered into pursuant to this section shall be

deposited in the transportation general fund of the district and shall be

considered reimbursements to the district for the purpose of the school

district finance and quality performance act. Such revenues may be ex-

pended whether the same have been budgeted or not.

(e) The provisions of subsection (c) of K.S.A. 8-1556, and amend-

ments thereto, apply to the use of school buses under authority of this

section.

Sec. 14. K.S.A. 72-8317 is hereby amended to read as follows: 72-

8317. (a) The board of education of any school district, pursuant to a

policy developed and adopted by the board, may provide that whenever

the school district furnishes school bus transportation for pupils of the

school district to or from attendance at class in an area vocational school,

area vocational-technical school, technical college, community college, or

four-year college or university, adults who are students enrolled at any

such educational institution may be furnished such school bus transpor-

tation to or from attendance at class, on a space available basis, along with

the pupils of the school district. Whenever any school district shall furnish

transportation for adult students pursuant to a policy adopted under au-

thority of this section, such transportation shall be furnished subject to

such terms and conditions as the board of education of the school district

shall impose.

(b) Fees for the furnishing of transportation for adult students pur-

suant to a policy adopted under authority of this section may be charged

such adult students to offset, totally or in part, any costs incurred by a

school district in the furnishing of such transportation, or such transpor-

tation may be furnished free of charge. Any revenues received by a board

of education as fees charged adult students for transportation furnished

under authority of this section shall be deposited in the transportation

general fund of the district and may be expended whether the same have

been budgeted or not.

Sec. 15. K.S.A. 72-8415a is hereby amended to read as follows: 72-

8415a. (a) If the board of education of any school district elects to act as

a self-insurer for the provision of health care services, disability income

benefits or a group life insurance benefit as authorized by K.S.A. 72-8414,

and amendments thereto, the board shall make payments for claims, judg-

ments and expenses for health care services, disability income benefits or

group life insurance benefits, whichever is applicable from the special

reserve fund of the school district.

The board of education may enter into a trust agreement with any

corporate entity having the powers of a trust company within the state of

Kansas, and may transfer from time to time amounts held in the special

reserve fund to the custody of the trustee for safeguarding and investment.

Any such trust agreement may grant the trustee the power to exercise

such fiscal management and administrative control as may be necessary

for the lawful and efficient management of any such amounts transferred

to the custody of the trustee.

(b) If the board of education of any school district or the board of

trustees of any community college elects to act as a self-insurer for the

provision of health care services or, disability income benefits, or a group

life insurance benefit, or all three, as authorized by K.S.A. 72-8414, and

amendments thereto, it shall by resolution the board shall create a sep-

arate health care services reserve fund or disability income benefits re-

serve fund, or a separate group life insurance benefit reserve fund, or all

three, in the budget of the school district or community college, which-

ever is applicable, which shall be reserve funds for the payments of claims,

judgments and expenses for health care services or disability income ben-

efits or group life insurance benefits, whichever is applicable. Any balance

remaining in any such reserve fund at the end of the fiscal year shall be

carried forward into that reserve fund for succeeding fiscal years. No such

fund shall be subject to the provisions of K.S.A. 79-2925 through 79-2937,

and amendments thereto, except that. In preparing the budget of such

school district or community college, the amounts credited to and the

amount on hand in any such reserve fund, and the amount expended

therefrom shall be included in the annual budget for the information of

the residents. Interest earned on the investment of moneys in any such

fund shall be credited to that fund.

(b) In the discretion of the board of education or The board of trus-

tees, it may enter into a trust agreement with any corporate entity having

the powers of a trust company within the state of Kansas, and may transfer

from time to time amounts held in the health care services reserve fund

or the disability income benefits reserve fund, or the group life insurance

benefit reserve fund, or all three, to the custody of the trustee for safe-

guarding and investment. Any such trust agreement may grant the trustee

the power to exercise such fiscal management and administrative control

as may be necessary for the lawful and efficient management of any such

amounts transferred to the custody of the trustee.

Sec. 16. K.S.A. 72-8415b is hereby amended to read as follows: 72-

8415b. (a) Any school district or community college that elects to become

a self-insurer under the provisions of K.S.A. 72-8414, and amendments

thereto, may transfer such amounts moneys from its general fund to the

health care services reserve fund or the disability income benefits reserve

fund, or the group life benefit reserve fund, or all three, as may be

deemed necessary to meet the cost of health care services or disability

income benefits, or group life insurance claims, whichever is applicable

special reserve fund of the district as provided by K.S.A. 72-6428, and

amendments thereto.

(b) Any community college that elects to become a self-insurer under

the provisions of K.S.A. 72-8414, and amendments thereto, may transfer

such amounts from its general fund to the health care services reserve

fund or the disability income benefits reserve fund, or the group life ben-

efit reserve fund, or all three, as may be deemed necessary to meet the

cost of health care services or disability income benefits, or group life

insurance claims, whichever is applicable.

Sec. 17. K.S.A. 75-6110 is hereby amended to read as follows: 75-

6110. (a) Except as provided for school districts, payments by municipal-

ities for the cost of providing for its defense and the defense of employees

pursuant to this act and for the payment of claims and other direct and

indirect costs resulting from the implementation of this act may be paid

from the general or other existing fund of such municipality or from a

special liability expense fund established for such purpose pursuant to

subsection (b). School districts shall make such payments from the special

liability expense fund of the school district.

(b) Whenever the governing body of any municipality shall determine

that it is advisable to establish a special fund for the payment of such

costs and to establish a reserve therefor, in lieu of paying the same out

of the general or other existing fund of the municipality, such governing

body may create and establish a special liability expense fund for the

payment of such costs and may place therein any moneys received by the

municipality from any source whatsoever which may be lawfully utilized

for such purpose including the proceeds of tax levies hereinafter author-

ized and provided. Such fund shall not be subject to the provisions of

K.S.A. 79-2925 to 79-2937, inclusive, and any acts amendatory thereof or

supplemental thereto, except that through 79-2937, and amendments

thereto. In making the budget of such municipality, the amounts credited

to and the amount on hand in such special fund, and the amount ex-

pended therefrom, shall be included in the annual budget for the infor-

mation of the residents of such municipality.

(c) Whenever the governing body of any municipality which is au-

thorized by law to levy taxes upon property has established a special lia-

bility expense fund under the provisions of this section and shall deter-

mine determines that moneys from other sources will be insufficient to

pay such costs, the governing body is hereby authorized to may levy an

annual tax upon all taxable tangible property within the municipality in

an amount determined by the governing body to be necessary for such

purpose and in the case of cities, counties and school districts and coun-

ties, to pay a portion of the principal and interest on bonds issued by cities

under the authority of K.S.A. 12-1774, and amendments thereto, for the

financing of redevelopment projects upon property located in such city

or county or such school district.

Sec. 18. K.S.A. 79-2926 is hereby amended to read as follows: 79-

2926. (a) Subject to the provisions of subsection (b), the director of ac-

counts and reports shall prepare and prescribe forms for the annual budg-

ets of all taxing subdivisions or municipalities of the state. Such forms

shall show the information required by this act and by K.S.A. 1973 Supp.

79-4401 et seq., necessary and proper to fully disclose complete infor-

mation as to the financial condition of such taxing subdivision or munic-

ipality, and the receipts and expenditures thereof, both past and antici-

pated.

(b) (1) From and after July 1, 2004 and based upon recommendations

by the state department of education, the director shall prepare and pre-

scribe forms for the annual budget and a summary of the proposed budget

of school districts. The state department of education shall make such

recommendations after considering the best practices and standards es-

tablished by the government finance officers association and the associ-

ation of school business officials.

(2) (A) The school district budget form shall include a separate table

outlining the aggregate amount of expenditures for salaries and wages for

the following categories:

(i) Certified and noncertified administrators;

(ii) persons employed full-time as teachers;

(iii) other certified employees who are not employed full-time as

teachers;

(iv) classified employees;

(v) other positions designated by the state department of education;

and

(vi) substitutes and other temporary employees.

(B) The school district budget form shall show the number of full-time

employee positions specified in paragraph (A) of this subsection and the

average salaries or wages for such positions.

(C) The school district budget form shall show any other information

recommended by the state department of education.

(3) The summary of the proposed budget form shall include:

(A) An overview of the proposed budget of the school district and the

budgetary process;

(B) a summary of the changes in the proposed budget from the pre-

vious budget year;

(C) a summary of the estimated expenditures to be made and revenues

to be received in the ensuing budget year and the sources of such revenue;

(D) the internet website address for school building report cards com-

piled by the state department of education; and

(E) any other information specified by the state department of edu-

cation.

(4) Nothing in this subsection (b) shall be construed as limiting the

authority of school districts to develop and provide material or informa-

tion in addition to that required by the state department of education.

(5) The state department of education shall provide technical advice

and assistance to school districts to insure compliance with the provisions

of this section.

(c) All such budget and tax levy forms shall be printed by the director

division of printing and in such quantity as required by the director. The

director shall deliver the forms for all school districts to the clerk of the

board of education of each school district. The forms for all other taxing

subdivisions or municipalities of the state shall be delivered by the direc-

tor to the county clerk of each county, who shall immediately deliver the

same to the presiding officer of the governing body of the said respective

taxing subdivisions or municipalities within the county. Whenever in ar-

ticle 29 of chapter 79 of Kansas Statutes Annotated the words state au-

ditor or auditor of state, or words of like effect, occur, the same shall

mean director of accounts and reports.

Sec. 19. K.S.A. 79-2927 is hereby amended to read as follows: 79-

2927. (a) The governing body of each taxing subdivision or municipality

shall meet not later than the first day of August of each year, and shall

prepare in writing on forms furnished by the director of accounts and

reports a budget itemized and classified by funds and showing amounts

to be raised by taxation and from other sources for the ensuing budget

year. The budget shall show in parallel columns all amounts and items to

be expended for the ensuing budget year and the amounts appropriated

for corresponding or other items during the current budget year and

amounts expended for corresponding or other items during the preceding

budget year. The budget for each fund shall not include any item for

sundry or miscellaneous purposes in excess of 10% of the total. Except

for school districts, municipal universities and community colleges, the

budget for each fund may include a non-appropriated balance of not to

exceed 5% of the total of each fund.

(b) The budget shall show in parallel columns the amount of revenue

actually received from taxation and from other sources, with the amount

from each source separately stated for the preceding budget year and the

amount actually received and estimated to be received from taxation and

from sources other than direct taxation with the amount for each source

separately stated for the current budget year and also the amount esti-

mated to be received during the ensuing budget year, with the amount

estimated to be received from each source separately stated. Except as

provided by section 20, and amendments thereto, the budget of expend-

itures for each fund shall balance with the budget of revenues for such

fund and that portion of the budget of revenues to be derived from ad

valorem property taxation shall not exceed the amount of tax which can

be raised by any fund limit or aggregate limit placed upon such fund.

New Sec. 20. (a) When preparing the budget for a school district,

the board of education of the district shall budget to expend only the

amount estimated to be spent from each fund of the school district.

(b) Except as provided by this subsection, any unexpended moneys

remaining in a fund of a school district at the end of the budget year may

be carried forward into such fund for succeeding budget years. The pro-

visions of this subsection shall not apply to the general fund or the sup-

plemental general fund of the school district.

(c) Whenever unexpended moneys in a school district fund are car-

ried forward into such fund for the succeeding budget year, the budget

of the school district shall reflect the ending balance in such fund which

the school district estimates will be carried forward to the succeeding

budget year.

(d) If the board of education determines it is necessary to expend

moneys which had been budgeted to be carried forward into the next

succeeding budget year, the board shall amend its previously adopted

budget. Any amended budget shall be subject to the same publication,

notice and public hearing requirements as is required by K.S.A. 79-2929,

and amendments thereto, for the adoption of the original budget.

New Sec. 21. (a) Each year the board of education of a school district

shall prepare a budget and a summary of the proposed budget. Such

budget and summary shall be in the form prescribed by the director

pursuant to K.S.A. 79-2926, and amendments thereto.

(b) The budget and the summary of the proposed budget shall be on

file at the administrative offices of the school district. Copies of such

budget and summary shall be available upon request.

(c) The notice required to be published by K.S.A. 79-2929, and

amendments thereto, shall include a statement that the budget and the

summary of the proposed budget is on file at the administrative offices

of the district and that copies of such budget and summary are available

upon request.

New Sec. 22. (a) From and after July 1, 2004, each year the board

of education of a school district shall prepare a profile of the school dis-

trict. The profile shall include any information specified by the state de-

partment of education to be included in such profile, including but not

limited to, information relating to the governing body of the school dis-

trict, an overview of the budget of the school district adopted by the board

pursuant to K.S.A. 79-2925 through 79-2935, and amendments thereto,

and the budgetary process.

(b) The profile of the school district shall be on file at the adminis-

trative offices of the school district. Copies of the profile of the school

district shall be available upon request.

(c) The notice required to be published by K.S.A. 79-2929, and

amendments thereto, shall include a statement that a profile of the school

district will be on file at the administrative offices of the district after the

board adopts the budget for the ensuing budget year and that copies of

the profile will be available upon request.

Sec. 23. K.S.A. 12-1663 is hereby amended to read as follows: 12-

1663. (a) Where any public agency receives federal aid through any fed-

eral agency for any purpose to be used alone or with funds of the public

agency, such federal aid may be expended without regard to budget lim-

itations and over, above or outside the budget, and such expenditures

shall not be charged against the budget of the current or any other budget

year of the public agency; and. Where a public agency spends from budg-

eted funds and later is reimbursed by federal aid, such expenditure from

budgeted funds shall be a reimbursed expense and if received after the

budget year, shall increase the current budget to the same amount unless

the budget had anticipated and included the reimbursement as income.

(b) In addition to the requirements of subsection (a), a school district

shall include all revenues and expenditures, including, but not limited to,

federal aid and other grants, gifts and miscellaneous income, in all budget

documents prepared by the school district, including documents submit-

ted to the department of education. In order to account for such revenues

and expenditures separately, each school district shall budget for federal

aid and other grants and gifts, other than scholarships, received, which

funds shall not be subject to limitations on the expenditure of moneys in

such funds.

Sec. 24. K.S.A. 72-8223 is hereby amended to read as follows: 72-

8223. (a) The secretary of social and rehabilitation services shall pay tui-

tion to the board of education of any school district for children in any

institution under the jurisdiction of the secretary who attend any of the

schools of such school district. The amount of tuition shall be determined

on the basis of the average operating cost per pupil of the school district,

less the proportionate amount of state aid received by such school district

as determined by the state board of education. Whenever feasible, the

board of education of such school district shall work with the department

of social and rehabilitation services to maximize federal matching funds.

(b) Payments of tuition received under this section by the board of

education of any school district for attendance of children at school in

regular educational programs shall be deposited in the general fund of

the school district and considered as reimbursements of the district for

the purpose of the school district finance and quality performance act.

tuition reimbursement fund.

(c) There is hereby established in every district a fund which shall be

called the tuition reimbursement fund, which fund shall consist of all

moneys deposited therein or transferred thereto according to law. The

expenses of a district attributable to the costs of providing educational

services to a child in an institution under the jurisdiction of the secretary

who attends the school shall be paid from the tuition reimbursement fund.

Sec. 25. K.S.A. 12-1663, 12-2615, 44-505c, 72-3703, 72-4141, 72-

5390, 72-6409, 72-6425, 72-6428, 72-8209, 72-8223, 72-8302, 72-8316,

72-8317, 72-8415a, 72-8415b, 75-6110, 79-2926 and 79-2927 are hereby

repealed.

Sec. 26. This act shall take effect and be in force from and after its

publication in the statute book.

Approved April 21, 2002.


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Date Composed: 10/29/2003 Date Modified: 10/29/2003