MO HB679

Repeals and re-enacts section 165.011, RSMo, regarding school district fund accounting and reserve fund transfers.

Allows school districts to transfer unrestricted funds from the capital projects fund to the incidental fund to avoid becoming financially stressed as defined in section 161.520.

Permits transfers from capital projects to incidental fund when the combined June 30th unrestricted balance in incidental and teachers' funds is less than twenty percent of combined expenditures from those funds for that fiscal year.

Restricts transfers by requiring that funds derived from general obligation bond proceeds remain in the capital projects fund and cannot be transferred to the incidental fund.

Maintains existing restrictions on transfers between other school district funds (teachers', incidental, debt service, and capital projects) and establishes penalties for unlawful transfers through state aid deductions.