MO HB106

Sheltered workshop boards cannot hold general operating reserves exceeding one year's estimated annual operating costs, calculated as either the average of the three preceding fiscal years plus 5% (existing workshops) or the current fiscal year budget plus 5% (new workshops).

Capital improvement projects and other one-time or special expenditures are exempt from reserve limitations and must be held in a separate account not commingled with general operating reserves.

Any general operating reserves exceeding the limits at fiscal year-end must be refunded to district taxpayers, unless deposited into the capital improvements account for board-approved projects (capped at projected costs plus 10%).

Boards cannot hold more than 10% of the current fiscal year's general operating budget in the capital improvements account without an approved specific project; excess amounts must be refunded to taxpayers.

Boards must adopt a written reserve policy consistent with these requirements, and any excessive reserves existing when the law takes effect must be expended within three years or refunded to taxpayers.