MS HB909

Extends the repeal date of Section 37-61-8 from July 1, 2012 to July 1, 2015 for provisions requiring school districts with low maintenance fund balances to submit cost reduction plans.

School districts with an ending maintenance fund balance below 7% of total revenue deposited that fiscal year must prepare and file a cost reduction plan with the State Department of Education.

The State Board of Education may establish rules requiring districts to demonstrate cost savings through actual expenditure reductions and prioritize cuts to noninstructional personnel before reducing instructional staff or teacher supplements.

The State Department of Education must approve submitted plans or return them with guidance for revision and resubmission.

The act takes effect July 1, 2012 and the cost reduction plan requirement expires July 1, 2015.