MO HB1887

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% (for existing workshops) or the current fiscal year budget plus 5% (for 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, with a maximum of 10% of the current fiscal year budget allowed if no specific project has been approved.

Any excess reserves at the end of a fiscal year must be refunded to district taxpayers, though amounts may be transferred to capital projects if a specific project is board-approved and the account does not exceed projected costs plus 10%.

Existing reserves exceeding the limits on the effective date must be expended within three years or refunded to taxpayers.

Beginning February 1, 2013, sheltered workshop boards must annually report financial data to the Department of Health and Senior Services, with a $500 per day penalty for failure to comply, and the department must submit compiled reports to the general assembly by March 1 each year.