MS HB77

Requires each school district to limit budgeted administrative expenditures to $150,000 plus 4% of annual expenditures, excluding federal funds.

Applies limitations to salaries and fringe benefits in specific administrative functions including board services, executive administration, business services, fiscal services, and purchasing services as defined in the Mississippi Public School District Financial Accounting Manual.

Allows school districts to exclude costs that result in net savings by demonstrating to the Office of Educational Accountability that the expenditure prevents higher costs in non-administrative functions.

Limits required annual reductions to a maximum of 25% per year and exempts districts with five or fewer full-time administrative employees or those that can demonstrate comparable reductions occurred in the five-year period before 1993-1994.

Effective July 1, 2016, with authority for the State Board of Education to grant exemptions if the limitation would jeopardize fiscal integrity, operations, or educational service delivery.