37-57-108 - Issuance of promissory notes by school districts in event of revenue shortfall.
§ 37-57-108. Issuance of promissory notes by school districts in event of revenue shortfall.
[From and after July 1, 2008, through June 30, 2010, this section shall read as follows:]
(1) In the event that the amount of revenue collected or estimated to be collected from local sources, on behalf of a school district during a fiscal year, is less than the amount provided for in the duly adopted budget of said school district for the fiscal year, then the school district may issue promissory notes in an amount and in the manner set forth in Section 27-39-333, not to exceed the estimated shortfall of revenue from local sources, but in no event to exceed twenty-five percent (25%) of its budget anticipated to be funded from the sources of the shortfall for the fiscal year. A school district issuing notes under the provisions of this section shall not be required to publish notice of its intention to do so or to secure the consent of the qualified electors or the tax levying authority of such school district.
(2) If the amount of revenue collected or estimated to be collected from local or other sources, on behalf of a school district during a fiscal year, is less than the amount provided for in the duly adopted budget of the school district for the fiscal year as a result of Hurricane Katrina, then the school district may issue promissory notes in an amount and in the manner set forth in Section 27-39-333, not to exceed the estimated shortfall of revenue from local or other sources, but in no event to exceed fifty percent (50%) of its budget anticipated to be funded from the sources of the shortfall for the fiscal year. Any school district issuing promissory notes under this subsection may do so only if such school district receives prior approval by the State Superintendent of Education that the school district received damage from Hurricane Katrina. In order for a school district to issue notes under the provisions of this section, the superintendent of the local school district must recommend such action to the school board and the board must duly adopt and enter upon its official minutes a resolution setting forth specific findings as to how the district meets the requirements of this section.
(a) Revenues collected from local or other sources on behalf of a school district for any fiscal year shall be deemed to include any funds received or anticipated to be received by the school district from the United States federal government or any agency thereof for the purpose of replacing the loss of operating funds that otherwise would have been derived from local or other sources for that fiscal year.
(b) Any school district may borrow funds from the United States federal government or any agency thereof to compensate for the loss of revenue collected or estimated to be collected on behalf of the school district from local or other sources during a fiscal year as a result of Hurricane Katrina may issue its promissory note to the United States federal government or any agency thereof, and may comply with and issue the regulations of the Untied States federal government or agency thereof regarding such promissory note. Provided, however, that this section does not authorize any school district to levy taxes or to pledge collateral for the security of such promissory note not otherwise allowed by law. The State of Mississippi may sign any promissory note as an equal co-obligor on any such note, and in the event the State of Mississippi signs such promissory note as a co-obligor, the full faith and credit of the State of Mississippi shall be pledged for the payment of such promissory note.
[From and after July 1, 2010, this section shall read as follows:]
In the event that the amount of revenue collected or estimated to be collected from local sources, on behalf of a school district during a fiscal year, is less than the amount provided for in the duly adopted budget of said school district for the fiscal year, then the school district may issue promissory notes in an amount and in the manner set forth in Section 27-39-333, not to exceed the estimated shortfall of revenue from local sources, but in no event to exceed twenty-five percent (25%) of its budget anticipated to be funded from the sources of the shortfall for the fiscal year. A school district issuing notes under the provisions of this section shall not be required to publish notice of its intention to do so or to secure the consent of the qualified electors or the tax levying authority of such school district.
Sources: Laws, 1993, ch. 562, § 5; Laws, 2005, 5th Ex Sess, ch. 23, § 1; Laws, 2006, ch. 308, § 1; Laws, 2008, ch. 556, § 2, eff from and after July 1, 2008.