161.527. District not required to reduce operating levy, when--restrictions on administrative costs and salaries--exemptions from restrictions, limitation--extension on exemptions may be submitted to
District not required to reduce operating levy, when--restrictions onadministrative costs and salaries--exemptions from restrictions,limitation--extension on exemptions may be submitted to voters.
161.527. 1. If a school district, which has an assessed valuationper average daily attendance equal to or less than the state averageassessed valuation per average daily attendance, has transmitted by Julyfifteenth to the department of elementary and secondary education thereport required by section 162.821, RSMo, and such school district hasreceived a notice pursuant to section 161.525, such school district is notrequired to reduce its operating levy pursuant to section 164.013, RSMo,when the district next determines its tax rate in accordance with theprovisions of section 164.011, RSMo. However, if a school district doesnot reduce its operating levy as permitted in this subsection, the schooldistrict shall not in the current and next school year increase:
(1) Its administrative costs; or
(2) The aggregate amount of funds paid for salaries of employees ofthe district.
2. The restrictions on increasing administrative costs and funds paidfor salaries as provided for in subsection 1 of this section shall continuein the district for each subsequent school year until combined balances inthe teachers' and incidental funds at the end of a fiscal year are equal toor exceed three percent of the amount expended from the funds during theprevious fiscal year as determined by the department of elementary andsecondary education. Such restrictions provided for in subsection 1 ofthis section shall not apply to increased expenditures of the districtnecessary to maintain health insurance coverage for district employees atthe same level that may have been provided by the district prior toimplementation of the restrictions. Further, the restrictions shall notapply to increased expenditures of the district necessary to meet thedistrict's share of contributions for employees who are members of thepublic school retirement system of Missouri, the public school retirementsystem of the school district of Kansas City, or the public schoolretirement system of the city of St. Louis.
3. The exemption from reduction authorized by subsection 1 of thissection shall be limited to two tax years, at which time the district maysubmit to the voters of the district the question of whether to continuesuch exemption.
(L. 1992 S.B. 581 § 3 subsecs. 2, 3, 4, A.L. 1998 S.B. 781, A.L. 2005 S.B. 287)Effective 7-01-06