HB 410 -- SALE OF SCHOOL PROPERTY

The bill permits financially stressed school districts, upon
proper notice to the Department of Elementary and Secondary
Education, to place proceeds from sales of real property and
nonrealty in the incidental fund, as well as in the capital
projects fund.  Districts that are not financially stressed can
place such proceeds only in the capital projects fund.

The bill contains an emergency clause.

HB 410 -- SALE OF SCHOOL PROPERTY (Bray)

The bill permits financially stressed school districts, upon
proper notice to the Department of Elementary and Secondary
Education, to place proceeds from sales of real property and
nonrealty in the incidental fund, as well as in the capital
projects fund.  Districts that are not financially stressed
would place such proceeds only in the capital projects fund.

The bill contains an emergency clause.

FISCAL NOTE:  No impact on state funds.

HB 410, HCA 1 -- SALE OF SCHOOL PROPERTY

SPONSOR:  Bray

COMMITTEE ACTION:  Voted "do pass" by the Committee on Education
- Elementary and Secondary by a vote of 23 to 0.

The bill permits financially stressed school districts another
option in placing proceeds from sales of real property and
nonrealty.  Upon proper notice to the Department of Elementary
and Secondary Education, such districts may place property sales
proceeds in the capital projects fund, as well as in the
incidental fund.  Current law requires that the receipts from
sales of both types of property be placed in the incidental
fund; districts that are not financially stressed would continue
to place proceeds only in the incidental fund.

The bill contains an emergency clause.

HCA 1 -- Clears up a conflict in the statutes concerning the
placement of moneys from sale of real property; in districts
that are not financially stressed, such moneys may be deposited
only in the capital projects fund.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the bill offers a measure of
flexibility to financially distressed school districts.
Ideally, this provision will not have to be used again because
of better monitoring and counseling of districts by the
Department of Elementary and Secondary Education to detect
fiscal problems before they result in emergencies. The bill also
allows resolution of an emergency for one particular school
district without resort to teacher layoffs or lawsuits.

Testifying for the bill were Representative Bray; Department of
Elementary and Secondary Education; Cooperating School Districts
of Greater St. Louis; and Missouri National Education Association

OPPONENTS:  There was no opposition voiced to the committee.

Becky DeNeve, Research Analyst

HB 410 -- Sale of School Property

Sponsor:  Bray

The bill permits financially stressed school districts another
option in placing proceeds from sales of real property and
nonrealty.  Upon proper notice to the Department of Elementary
and Secondary Education, such districts may place property sales
proceeds in the capital projects fund, as well as in the
incidental fund.  Current law requires that the receipts from
sales of both types of property be placed in the incidental
fund; districts that are not financially stressed would continue
to place proceeds only in the incidental fund.

The bill contains an emergency clause.