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 8  AN ACT concerning school district finance; relating to local option budg-
 9    ets; amending K.S.A. 1996 Supp. 72-6433 and repealing the existing
10    section; also repealing K.S.A. 1996 Supp. 72-6433a.
11
12  Be it enacted by the Legislature of the State of Kansas:
13    Section 1.  K.S.A. 1996 Supp. 72-6433 is hereby amended to read as
14  follows: 72-6433. (a) (1) The board of any district may adopt a local option
15  budget in each school year for a period of time not to exceed four school
16  years in an amount not to exceed the state prescribed percentage of the
17  amount of state financial aid determined for the district in the school year
18  if the board of the district determines that adoption of such a budget
19  would be in the best interests of the district. No district may adopt a
     local
20  option budget under authority of this subsection until a resolution au-
21  thorizing adoption of such a budget is passed by the board and published
22  once in a newspaper having general circulation in the district. The reso-
23  lution shall be published in substantial compliance with the following
24  form:
25  Unified School District No. ____________,
26                                                __________________ County,
     Kansas.
27                                     RESOLUTION
28  Be It Resolved that:
29    The board of education of the above-named school district shall be
     authorized to adopt
30  a local option budget in each school year for a period of time not to exceed
     ______ years
31  in an amount not to exceed ______% of the amount of state financial aid
     determined for
32  the current school year. The local option budget authorized by this
     resolution may be
33  adopted, unless a petition in opposition to the same, signed by not less
     than 5% of the
34  qualified electors of the school district, is filed with the county election
     officer of the home
35  county of the school district within 30 days after publication of this
     resolution. In the event
36  a petition is filed, the county election officer shall submit the question
     of whether adoption
37  of the local option budget shall be authorized to the electors of the school
     district at an
38  election called for the purpose or at the next general election, as is
     specified by the board
39  of education of the school district.
40                                    CERTIFICATE
41    This is to certify that the above resolution was duly adopted by the
     board of education of
42  Unified School District No. ______,  ____________ County, Kansas, on the
     ______ day of
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 2  -____________, 19______.
 3
     ______________________________
 4                                                  Clerk of the board of
     education.
 5    All of the blanks in the resolution shall be appropriately filled. The
 6  blank preceding the word ``years'' shall be filled with a specific number,
 7  not to exceed the number 4, and the blank preceding the percentage
 8  symbol shall be filled with a specific number. No word shall be inserted
 9  in either of the blanks. The percentage specified in the resolution shall
10  not exceed the state prescribed percentage. The resolution shall be pub-
11  lished once in a newspaper having general circulation in the school dis-
12  trict. If no petition as specified above is filed in accordance with the
13  provisions of the resolution, the board may adopt a local option budget.
14  If a petition is filed as provided in the resolution, the board may notify
15  the county election officer of the date of an election to be held to submit
16  the question of whether adoption of a local option budget shall be au-
17  thorized. If the board fails to notify the county election officer within 30
18  days after a petition is filed, the resolution shall be deemed abandoned
19  and no like resolution shall be adopted by the board within the nine
20  months following publication of the resolution.
21    (2)  If any district is authorized to adopt a local option budget, but
22  the board of such district chooses, in any year, not to adopt such a budget,
23  or chooses to adopt such budget in an amount less than the amount of
24  the district prescribed percentage of the amount of state financial aid in
25  any school year, such board of education may do so. If the board of any
26  district refrains from adopting a local option budget in any one or more
27  school years or refrains from budgeting the total amount authorized for
28  any one or more school years, the authority of such district to adopt a
29  local option budget shall not thereby be extended beyond the original
30  period specified in the resolution authorizing adoption of such budget,
31  nor shall the amount authorized to be budgeted in any succeeding school
32  year be increased thereby.
33    (3)  Whenever an initial resolution has been adopted under this sub-
34  section, and such resolution specified a lesser percentage than the state
35  prescribed percentage, the board of the district may adopt one or more
36  subsequent resolutions under the same procedure as provided for the
37  initial resolution and subject to the same conditions, and shall be author-
38  ized to increase the percentage as specified in any such subsequent res-
39  olution for the remainder of the period of time specified in the initial
40  resolution. Any percentage specified in a subsequent resolution or in sub-
41  sequent resolutions shall be limited so that the sum of the percentage
42  authorized in the initial resolution and the percentage authorized in the
43  subsequent resolution or in subsequent resolutions is not in excess of the
44  state prescribed percentage in any school year.
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 2    -(4)  The board of any district that has adopted a local option budget
 3  and levied a tax under authority of K.S.A. 72-6435, and amendments
 4  thereto, may initiate, at any time after the final levy is certified to the
 5  county clerk under any current authorization, procedures to renew its
 6  authority to adopt a local option budget subject to the conditions and in
 7  the manner specified in provision (1) of this subsection and, at four-year
 8  intervals thereafter, may in like manner and subject to like conditions
 9  renew such authorization for successive four-year periods.
10    (5)  As used in this subsection:
11    (A)  ``Authorized to adopt a local option budget'' means that a district
12  has adopted a resolution under this subsection, has published the same,
13  and either that the resolution was not protested or that it was protested
14  and an election was held by which the adoption of a local option budget
15  was approved.
16    (B)  ``District prescribed percentage'' means the percentage specified
17  in a resolution under which a district is authorized to adopt a local option
18  budget.  No such percentage shall exceed the state prescribed percentage.
19    (C)  ``State prescribed percentage'' means 25%.
20    (b) (1)  The board of any district to which the provisions of this sub-
21  section apply may adopt a local option budget in the 1997-98 school year
22  or in the 1998-99 school year or in both such school years if the board of
23  the district determines that adoption of such a budget would be in the
24  best interests of the district. The adoption of a local option budget in
     the
25  1997-98 school year under authority of this subsection shall require a
26  majority vote of the members of the board and shall require no other
27  procedure, authorization or approval. The provisions of this subsection
28  apply to any district that is was authorized to adopt and that adopts
29  adopted a local option budget in the 1996-97 school year and, in order to
30  be authorized to adopt a local option budget in the 1997-98 subsequent
31  school year years, would be required by operation of this section prior to
32  its amendment by this act to initiate procedures to renew its authority to
33  adopt a local option budget, subject to the conditions and in the manner
34  specified in subsection (a), after certifying to the county clerk the levy
     of
35  a tax for the purpose of financing all or a portion of the local option
     budget
36  adopted in the 1996-97 school year.
37    (2)  The amount of a local option budget adopted by the board of a
38  district in the 1997-98 school year under authority of this subsection shall
39  not exceed an amount equal to the district prescribed percentage of the
40  amount of state financial aid determined for the district in the school
41  year. For the purposes of this provision, the term district prescribed per-
42  centage means the percentage specified in the resolution under which a
43  district is was authorized to adopt a local option budget in the 1996-97
44  school year.
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 2    -(3)  To the extent the provisions of subsection (a) conflict with this
 3  subsection, the provisions of this subsection shall control.
 4    (4)  The provisions of this subsection shall expire on June 30, 1998
 5  1999.
 6    (c) (1)  There is hereby established in every district that adopts a
     local
 7  option budget a fund which shall be called the supplemental general fund.
 8  The fund shall consist of all amounts deposited therein or credited thereto
 9  according to law.
10    (2)  Subject to the limitation imposed under provision (3), amounts in
11  the supplemental general fund may be expended for any purpose for
12  which expenditures from the general fund are authorized or may be trans-
13  ferred to the general fund of the district or to any program weighted fund
14  or categorical fund of the district.
15    (3)  Amounts in the supplemental general fund may not be expended
16  nor transferred to the general fund of the district for the purpose of mak-
17  ing payments under any lease-purchase agreement involving the acqui-
18  sition of land or buildings which is entered into pursuant to the
     provisions
19  of K.S.A. 72-8225, and amendments thereto.
20    (4)  Any unexpended and unencumbered cash balance remaining in
21  the supplemental general fund of a district at the conclusion of any school
22  year in which a local option budget is adopted shall be disposed of as
23  provided in this subsection. If the district did not receive supplemental
24  general state aid in the school year and the district is authorized to adopt
25  a local option budget in the ensuing school year, the total amount of the
26  cash balance remaining in the supplemental general fund shall be main-
27  tained in such fund or transferred to the general fund of the district. If
28  such a district is not authorized to adopt a local option budget in the
29  ensuing school year, the total amount of the cash balance remaining in
30  the supplemental general fund shall be transferred to the general fund
31  of the district. If the district received supplemental general state aid in
32  the school year, transferred or expended the entire amount budgeted in
33  the local option budget for the school year, and is authorized to adopt a
34  local option budget in the ensuing school year, the total amount of the
35  cash balance remaining in the supplemental general fund shall be main-
36  tained in such fund or transferred to the general fund of the district. If
37  such a district is not authorized to adopt a local option budget in the
38  ensuing school year, the total amount of the cash balance remaining in
39  the supplemental general fund shall be transferred to the general fund
40  of the district. If the district received supplemental general state aid in
41  the school year, did not transfer or expend the entire amount budgeted
42  in the local option budget for the school year, and is not authorized to
43  adopt a local option budget in the ensuing school year, the total amount
44  of the cash balance remaining in the supplemental general fund shall be
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 2  -transferred to the general fund of the district. If the district received
 3  supplemental general state aid in the school year, did not transfer or
 4  expend the entire amount budgeted in the local option budget for the
 5  school year, and is authorized to adopt a local option budget in the en-
 6  suing school year, the state board shall determine the ratio of the amount
 7  of supplemental general state aid received to the amount of the local
 8  option budget of the district for the school year and multiply the total
 9  amount of the cash balance remaining in the supplemental general fund
10  by such ratio. An amount equal to the amount of the product shall be
11  transferred to the general fund of the district. The amount remaining in
12  the supplemental general fund may be maintained in such fund or trans-
13  ferred to the general fund of the district.
14    Sec. 2.  K.S.A. 1996 Supp. 72-6433 and 72-6433a are hereby re-
15  pealed.
16    Sec. 3.  This act shall take effect and be in force from and after its
17  publication in the statute book.