72-6426. Contingency reserve fund; limitations.
72-6426
72-6426. Contingency reserve fund;limitations.(a) There is hereby established in every district a fund which shall be calledthe contingency reserve fund. Such fund shall consist of all moneys depositedtherein or transferred thereto according to law. The fund shall be maintainedfor payment of expenses of a district attributable to financial contingenciesas determined by the board.
(b) (1) Except as otherwise provided in subsection (c), at no time inschool year 2008-2009 through school year 2011-2012 shall the amount maintainedin the contingency reserve fund exceed an amount equal to 10% of the generalfund budget of the district for the school year.
(2) Except as otherwise provided insubsection (c), at no time in school year2012-2013 or any school year thereafter shall the amount maintained in thecontingency reservefund exceed anamount equal to 6% of the general fund budget of the district for the schoolyear.
(c) (1) If the amount in the contingency reserve fund of adistrict is in excess of the amount authorized under subsection(b), and if such excess amount is the resultof areductionin the general fund budget of the district for the school year because of adecrease in enrollment, the district may maintain the excess amount in the funduntil depletion of such excess amount by expenditure from the fund for thepurposes thereof.
(2) The limitation on the amount which may be maintained in thecontingency reserve fund imposed under subsection (b) shall not apply to anydistrict whose state financial aid is computed under the provisions of K.S.A.72-6445a, and amendments thereto. Any such district may maintain the excessamount in the fund until depletion of such excess amount by expenditure fromthe fund for the purposes thereof.
History: L. 1992, ch. 280, § 22;L. 1993, ch. 51, § 1;L. 1995, ch. 160, § 5;L. 2002, ch. 196, § 3;L. 2005, ch. 2, § 11 (Special Session);L. 2006, ch. 197, § 18;L. 2009, ch. 106, § 2; Apr. 30.