House Bill 1170 Summary

• School districts with ending fund balances below 7% of total maintenance fund revenue in fiscal years 2010, 2011, and 2012 must submit a cost reduction plan to the State Department of Education alongside their annual budget submission.

• The State Board of Education may adopt rules specifying required plan contents, including demonstration of actual budgetary reductions and a requirement that noninstructional personnel reductions be prioritized before reducing instructional staff.

• School districts are authorized to furlough all instructional, noninstructional, and administrative employees for up to 3 days during the 2010-2011 and 2011-2012 school years, with employees receiving 1/2 day of personal leave for each furlough day.

• Licensed and nonlicensed employees furloughed without pay are credited with additional personal leave of 1/2 day per furlough day, and school districts may reduce the state minimum salary on a pro rata daily basis to comply with furlough provisions.

• School districts may reduce local salary supplements on a limited basis during 2010-2012 in conformity with furlough requirements; these provisions expire July 1, 2012.