261.20 - SCHOLARSHIP AND TUITION GRANT RESERVE FUND.
261.20 SCHOLARSHIP AND TUITION GRANT RESERVE FUND.
1. A scholarship and tuition grant reserve fund is created to
assure that financial assistance will be available to all students
who are awarded scholarships or tuition grants through programs
funded under this chapter. The fund is created as a separate fund in
the state treasury, and moneys in the fund shall not revert to the
general fund unless, and then only to the extent that, the funds
exceed the maximum allowed balance.
2. The maximum balance of the scholarship and tuition grant
reserve fund is an amount equal to one percent of the funds
appropriated to the scholarship and tuition grant programs under
section 261.25 during the preceding fiscal year. The moneys in the
fund shall be placed in separate accounts within the fund, according
to the source and purpose of the original appropriation. Moneys in
the various accounts shall only be used to alleviate a current fiscal
year shortfall in appropriations for scholarship or tuition grant
programs that have the same nature as the programs for which the
moneys were originally appropriated. At the conclusion of a fiscal
year, any surplus appropriations made to the commission for
scholarship or tuition grant programs are appropriated to the
scholarship and grant reserve fund in an amount equal to the amount
of the surplus or the amount necessary to achieve the maximum
balance, whichever amount is less.
3. Transfers of moneys from the scholarship and tuition grant
reserve fund to appropriation accounts in which there is a current
fiscal year shortfall may be made only with the prior written
approval of the governor. At least two weeks before moneys are
transferred from the fund, the commission shall notify the
chairpersons of the standing appropriations committees of the general
assembly and the co-chairpersons of the education appropriations
subcommittee of the proposed transfer. The notice shall include
information concerning the amount of and reason for the proposed
transfer. The chairpersons shall be given at least two weeks to
review and comment on the proposed transfer before the transfer can
be made.
4. The commission shall annually report to the general assembly
the methodology and manner in which the commission makes the
determination of awards for programs for which funds are appropriated
under section 261.25. Section History: Recent Form
89 Acts, ch 300, § 4
Referred to in § 261.2