Summary

Kansas HB 2261 (Open States or Kansas Legislature) extends school districts “fund flexibility” to enable them to spend unencumbered funds from certain programs on general operating expenses, with the intent that the majority of these funds be spent in the classroom or for instruction. It also removes a cap on the amount of money that may be kept in a contingency reserve fund.

Legislative Analysis

HB 2261 allows a school district to transfer unencumbered cash balances for the 2013-2014 school year and each school year after for general operating expenses of the district. These monies may come from each of the following funds: at-risk education, bilingual education, contingency reserve, professional development, summer program, one-third of textbook and student materials, one-third of special education, virtual school, vocational education, parent education, and driver training. The maximum amount that can be transferred from the unencumbered funds can’t exceed $250 multiplied by the adjusted enrollment of the district. The goal of this legislation is that at least 65% of the aggregate of all unencumbered balances authorized for expenditure will be spent in the classroom or for instruction.

HB 2261 removes any cap on the amount of money that can be maintained in a district’s contingency reserve fund. Before this legislation, districts were allowed to keep up to 10% of their general fund budget in a contingency reserve fund.

In addition, this legislation requires that the superintendent of a school district report the unencumbered balances in each of the funds named in the bill to the local board of education at the board’s July meeting, and to the State Board of Education by July 15 of each year.

HB 2261 may have a positive impact on digital learning by giving districts more flexibility with spending and freeing up additional funding for classroom and instructional resources, which may include digital elements.

Legislative History

Detailed Vote History: Legiscan |  Open States

Approved by Governor Sam Brownback on 5/22/2013