Sec. 10-51. Fiscal year. Budget. Payments by member towns; adjustments to payments. Investment of funds. Temporary borrowing. Reserve funds.
Sec. 10-51. Fiscal year. Budget. Payments by member towns; adjustments to
payments. Investment of funds. Temporary borrowing. Reserve funds. (a) The fiscal year of a regional school district shall be July first to June thirtieth. Except as otherwise provided in this subsection, not less than two weeks before the annual meeting
held pursuant to section 10-47, the board shall hold a public district meeting to present
a proposed budget for the next fiscal year. Any person may recommend the inclusion
or deletion of expenditures at such time. After the public hearing, the board shall prepare
an annual budget for the next fiscal year, make available on request copies thereof and
deliver a reasonable number to the town clerk of each of the towns in the district at least
five days before the annual meeting. At the annual meeting on the first Monday in May,
the board shall present a budget which includes a statement of (1) estimated receipts
and expenditures for the next fiscal year, (2) estimated receipts and expenditures for the
current fiscal year, (3) estimated surplus or deficit in operating funds at the end of the
current fiscal year, (4) bonded or other debt, (5) estimated per pupil expenditure for the
current and for the next fiscal year, and (6) such other information as is necessary in
the opinion of the board. Persons present and eligible to vote under section 7-6 may
accept or reject the proposed budget except as provided below. No person who is eligible
to vote in more than one town in the regional school district is eligible to cast more than
one vote on any issue considered at a regional school district meeting or referendum
held pursuant to this section. Any person who violates this section by fraudulently casting more than one vote or ballot per issue shall be fined not less than three hundred
dollars or more than five hundred dollars and shall be imprisoned not less than one year
or more than two years and shall be disenfranchised. The regional board of education
may, in the call to the meeting, designate that the vote on the motion to adopt the budget
shall be by paper ballots at the district meeting held on the budget or by a "yes" or "no"
vote on the voting machines in each of the member towns on the day following the
district meeting. If submitted to a vote by voting machine, questions may be included
on the ballot for persons voting "no" to indicate whether the budget is too high or too
low, provided the vote on such questions shall be for advisory purposes only and not
binding upon the board. Two hundred or more persons qualified to vote in any regional
district meeting called to adopt a budget may petition the regional board, in writing, at
least three days prior to such meeting, requesting that any item or items on the call of
such meeting be submitted to the persons qualified to vote in the meeting for a vote by
paper ballot or on the voting machines in each of the member towns on the day following
the district meeting and in accordance with the appropriate procedures provided in section 7-7. If a majority of such persons voting reject the budget, the board shall, within
four weeks thereafter and upon notice of not less than one week, call a district meeting
to consider the same or an amended budget. Such meetings shall be convened at such
intervals until a budget is approved. If the budget is not approved before the beginning
of a fiscal year, the disbursing officer for each member town, or the designee of such
officer, shall make necessary expenditures to such district in amounts equal to the total of
the town's appropriation to the district for the previous year and the town's proportionate
share in any increment in debt service over the previous fiscal year, pursuant to section
7-405 until the budget is approved. The town shall receive credit for such expenditures
once the budget is approved for the fiscal year. After the budget is approved, the board
shall estimate the share of the net expenses to be paid by each member town in accordance
with subsection (b) of this section and notify the treasurer thereof. With respect to adoption of a budget for the period from the organization of the board to the beginning of
the first full fiscal year, the board may use the above procedure at any time within such
period. If the board needs to submit a supplementary budget, the general procedure
specified in this section shall be used.
(b) For the purposes of this section, "net expenses" means estimated expenditures,
including estimated capital expenditures, less estimated receipts as presented in a regional school district budget. On the date or dates fixed by the board, each town in the
district shall pay a share of the cost of capital outlay, including costs for school building
projects under chapter 173, and current expenditures necessary for the operation of the
district. The board shall determine the amount to be paid by each member town. Such
amount shall bear the same ratio to the net expenses of the district as the number of
pupils resident in such town in average daily membership in the regional school district
during the preceding school year bears to the total number of such pupils in all the
member towns, provided that the board may recalculate such amount based on the number of pupils in average daily membership in the regional school district for the current
school year and may adjust each member town's payment to the regional school district
for the following fiscal year by the difference between the last such payment and the
recalculated amount. Until the regional school district has been in operation for one
year, such amounts shall be based on the average daily membership of pupils in like
grades from each of such towns at any school at which children were in attendance at
the expense of such towns during the preceding school year.
(c) The board shall deposit or invest temporarily any funds which are not needed
immediately for the operation of the school district as permitted in section 7-400 or
7-402. Any income derived from such deposits or investments shall be used at least
semiannually to reduce the net expenses. The board shall use any budget appropriation
which has not been expended by the end of the fiscal year to reduce the net expenses
of the district for the following fiscal year. The board may borrow funds temporarily
and issue notes or other obligations, and pay interest thereon, in anticipation of payments
to be made to it by a member town or the state, for the operation of its schools. Such
notes or obligations shall be authorized by resolution of the board, and shall be general
obligations of the regional school district and its member towns. The date, maturity,
interest rate, form, manner of sale and other terms of such notes or other obligations
shall be determined by the board or any officer or body to whom the board delegates
authority to make such determinations. Such notes may be renewed from time to time,
provided all such notes shall mature and be payable no later than the end of the fiscal
year during which such member town or state payments are payable.
(d) (1) Prior to June 7, 2006, upon the recommendation and the approval of a majority of members on the board, a regional board of education may create a reserve fund
to finance a specific capital improvement or the acquisition of any specific piece of
equipment. Such fund shall thereafter be termed "reserve fund for specific capital improvements or equipment purchases". No annual appropriation to such fund shall exceed
one per cent of the annual district budget. Appropriations to such fund shall be included
in the share of net expenses to be paid by each member town until the fund established
pursuant to this subdivision is discontinued. The board shall annually submit a complete
and detailed report of the condition of such fund to the member towns. Such fund may
be discontinued, after recommendation by the board and approval by the board, and any
amounts held in the fund shall be transferred to the general fund of the district.
(2) On and after June 7, 2006, a regional board of education, by a majority vote of
its members, may create a reserve fund for capital and nonrecurring expenditures. Such
fund shall thereafter be termed "reserve fund for capital and nonrecurring expenditures".
The aggregate amount of annual and supplemental appropriations by a district to such
fund shall not exceed one per cent of the annual district budget for such fiscal year.
Annual appropriations to such fund shall be included in the share of net expenses to be
paid by each member town. Supplemental appropriations to such fund may be made from
estimated fiscal year end surplus in operating funds. Interest and investment earnings
received with respect to amounts held in the fund shall be credited to such fund. The
board shall annually submit a complete and detailed report of the condition of such fund
to the member towns. Upon the recommendation and approval by the regional board of
education, any part or the whole of such fund may be used for capital and nonrecurring
expenditures, but such use shall be restricted to the funding of all or part of the planning,
construction, reconstruction or acquisition of any specific capital improvement or the
acquisition of any specific item of equipment. Upon the approval of any such expenditure
an appropriation shall be set up, plainly designated for the project or acquisition for
which it has been authorized, and such unexpended appropriation may be continued until
such project or acquisition is completed. Any unexpended portion of such appropriation
remaining after such completion shall revert to said fund. If any authorized appropriation
is set up pursuant to the provisions of this subsection and through unforeseen circumstances the completion of the project or acquisition for which such appropriation has
been designated is impossible to attain the board, by a majority vote of its members,
may terminate such appropriation which then shall no longer be in effect. Such fund
may be discontinued, after the recommendation and approval by the regional board of
education, and any amounts held in the fund shall be transferred to the general fund of
the district.
(1949 Rev., S. 1378; 1951, 1953, S. 906d; 1969, P.A. 698, S. 13; 1971, P.A. 679, S. 3, 4; P.A. 81-188; P.A. 83-82, S.
1, 2; 83-309, S. 1, 2; P.A. 84-255, S. 6, 21; 84-476, S. 1, 2; P.A. 92-262, S. 7, 42; P.A. 93-158, S. 5, 11; P.A. 94-245, S.
20, 46; P.A. 95-282, S. 5, 11; P.A. 96-244, S. 38, 63; P.A. 01-173, S. 9, 67; P.A. 04-117, S. 3; P.A. 06-192, S. 4.)
History: 1969 act added Subsec. (a) concerning budget adoption procedure, defined "net expenses" in Subsec. (b) and
incorporated former provisions in Subsec. (b) in newly simplified wording and added Subsec. (c) concerning investment
of funds and use of proceeds to reduce net expenses; 1971 act expanded voting provisions in Subsec. (a) to include provisions
concerning fraudulent voting and voting by machine and amended Subsec. (c) to permit temporary borrowing by board;
P.A. 81-188 added proviso in Subsec. (b) re recalculation of town's payment; P.A. 83-82 and 83-309 amended Subsec.
(a) allowing all regional school districts to designate in the call to the meeting that vote on motion to adopt budget shall
be by paper ballot or vote on machines where previously only districts comprised of four or more towns could do so; P.A.
84-255 amended Subsec. (a) clarifying that the vote on the motion to adopt the budget shall be by paper ballots at the
district meeting held on the budget or by a "yes" or "no" vote on the voting machines in each of the member towns on the
day following the district meeting; P.A. 84-476 added new Subsec. (d) re creation of a reserve fund to finance a specific
capital improvement or the acquisition of any specific piece of equipment; P.A. 92-262 amended Subsec. (a) to add the
provisions concerning a vote by voting machine; P.A. 93-158 amended Subsec. (c) by authorizing board to issue and pay
interest on notes and other obligations and adding provision specifying that notes or obligations issued in anticipation of
payment shall be obligations of the district and its members, effective June 23, 1993; P.A. 94-245 amended Subsec. (a) to
change the time frame for the board to call a district meeting if a budget is rejected from "two" to "four" weeks, effective
June 2, 1994; P.A. 95-282 made technical changes in Subsec. (c), effective July 6, 1995, provided "any designation of a
depository of public funds of the state or any municipality or regional school district, and any prescription of the method
of supervision of the investment and reinvestment of trust funds of a municipality, made in accordance with the applicable
provisions of sections 4-33, 7-401, 7-402, 7-403, subsection (c) of section 10-52 or subsection (d) of section 10-56 in effect
on or before July 6, 1995, shall remain in effect until rescinded or otherwise modified in accordance with the provisions
of public act 95-282" (Revisors note: The reference to "section 10-52" appears to be a clerical error since Subsec. (c) of
Sec. 10-51 was amended by Sec. 5 of P.A. 95-282); P.A. 96-244 revised effective date section of P.A. 95-282 but without
affecting this section; P.A. 01-173 amended Subsec. (b) to redefine "net expenses" to include estimated capital expenditures,
and to include costs for school building projects in capital outlay, effective July 1, 2001; P.A. 04-117 amended Subsec.
(a) to make a technical change and to authorize necessary expenditures by the disbursing officer for each member town
of a regional school district if the budget is not approved before the beginning of a fiscal year, effective July 1, 2004; P.A.
06-192 amended Subsec. (d) by designating existing language as Subdiv. (1) and amending same by allowing for termination
of existing reserve fund and by adding new Subdiv. (2) re reserve fund for capital and nonrecurring expenditures, effective
June 7, 2006.
See Sec. 7-380b re issuance of bonds, notes or other obligations authorized before June 23, 1993.
Cited. 141 C. 401.