53A-19-105 - School district interfund transfers.
53A-19-105. School district interfund transfers.
(1) A school district shall spend revenues only within the fund for which they were originallyauthorized, levied, collected, or appropriated.
(2) Except as otherwise provided in this section, school district interfund transfers of residualequity are prohibited.
(3) The State Board of Education may authorize school district interfund transfers of residualequity when a district states its intent to create a new fund or expand, contract, or liquidate an existingfund.
(4) The State Board of Education may also authorize school district interfund transfers ofresidual equity for a financially distressed district if the board determines the following:
(a) the district has a significant deficit in its maintenance and operations fund caused bycircumstances not subject to the administrative decisions of the district;
(b) the deficit cannot be reasonably reduced under Section 53A-19-104; and
(c) without the transfer, the school district will not be capable of meeting statewide educationalstandards adopted by the State Board of Education.
(5) The board shall develop standards for defining and aiding financially distressed schooldistricts under this section in accordance with Title 63G, Chapter 3, Utah Administrative RulemakingAct.
(6) (a) All debt service levies not subject to certified tax rate hearings shall be recorded andreported in the debt service fund.
(b) Debt service levies under Subsection 59-2-924(3)(e)(iii) that are not subject to the publichearing provisions of Section 59-2-919 may not be used for any purpose other than retiring generalobligation debt.
(c) Amounts from these levies remaining in the debt service fund at the end of a fiscal year shallbe used in subsequent years for general obligation debt retirement.
(d) Any amounts left in the debt service fund after all general obligation debt has been retiredmay be transferred to the capital projects fund upon completion of the budgetary hearing processrequired under Section 53A-19-102.
Amended by Chapter 204, 2009 General Session