SB 685 - This act makes several changes pertaining to capital projects funding for school districts.

Under current law, funds transferred to capital projects, known as the "24 cents" transfer, must be used to pay current year obligations. This act would allow the transfers to be made each year by a district without a requirement that the funds be expended in the current year.

The act allows school districts which maintain an operating fund balance of at least fifteen percent of yearly expenditure from operating funds and an operating levy of no less than the lesser of the district's tax rate ceiling or the $2.75 minimum levy to increase the "24 cents" transfer to 40 cents.

The act allows school districts to transfer from operating funds to the capital projects fund, prior to June 30, 1999, any amount of the transfer previously allowed pursuant to Section 165.011, RSMo, until June 30, 1995 and which was not made by that date. Current law allowed districts, prior to June 30, 1995, to "sweep" funds from the operating funds to the capital projects fund until the operating fund balance was reduced to no less than 8% of the operating fund expenditures for the 1994-95 school year. A similar provision is found in SCS/HCS/HB 1469.
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