MO SB907

Repeals and reenacts section 165.011, RSMo, governing school district fund accounting and transfers.

Permits a district in a first-classification county with 115,000-150,000 inhabitants maintaining its office in a home rule city with 13,500-15,000 inhabitants to make a one-time transfer during the 2014-15 school year of unrestricted incidental funds to the capital projects fund, provided the incidental fund balance does not fall below 20 percent, for constructing capital projects to improve student safety.

Establishes procedures for school districts to transfer funds between four accounts: teachers' fund, incidental fund, capital projects fund, and debt service fund, with restrictions on amounts and purposes.

Authorizes the Department of Elementary and Secondary Education to deduct from a school district's state aid any unlawful transfers from the incidental fund to capital projects or debt service funds, with deductions spread over no more than five school years.

Allows school districts to transfer unrestricted capital projects funds to the incidental fund to avoid financial stress when combined incidental and teachers' fund balances fall below 20 percent of expenditures, excluding bond proceeds.