MS HB32

State Department of Education must conduct a feasibility study to identify school districts and individual schools using cost-effective resource allocation practices that achieve high academic results, focusing on eliminating top-end administrative costs and implementing grade level proficiency standards.

Department shall develop a review process analyzing each school district's financial solvency by examining revenues, expenditures, student-to-staff ratios, fund balances, enrollment, tax rates, and audit reports for the preceding year and projected two-year outlook.

Department must create an electronic-based program for districts to submit financial data, capable of importing previous data and providing automatic alerts for concerning conditions such as abnormal student-to-staff ratios, rapid fund depletion, and budget discrepancies.

Districts projecting a general fund deficit within three school years must submit interim financial reports to the department and develop a financial plan for department approval to avoid insolvency.

School districts failing to submit an approved financial plan, failing to comply with an approved plan, or having an insufficiently implemented plan shall receive an "accredited-warned" status from the State Board of Education.