HB 5446 Summary

• Establishes criteria for school districts to lose organization and be declared dissolved, including insufficient qualified personnel, failure to submit or implement deficit elimination plans, financial non-viability, enrollment between 300-2,400 pupils, enrollment decline of 10% or more, and worsening operating fund deficits.

• Requires intermediate school boards or the superintendent of public instruction to declare dissolution, order attachment of territory to other school districts, and distribute assets equitably while considering pupil demographics including free/reduced lunch and special education enrollment.

• Allows dissolved school districts with outstanding debt to retain limited separate identity as a taxing unit for debt repayment and permits property tax levies for debt service and sinking fund purposes.

• Permits reorganization of dissolved school districts after July 1, 2013 if all debt is retired, school buildings are available through return from receiving districts, bonds, or private donation, and residents vote to reorganize.

• Requires newly reorganized school districts to operate under 5-year probationary agreements with intermediate school districts requiring budget approval, with exemption of dissolved district test scores from adequate yearly progress calculations for 3 school years following dissolution.