MS HB140

State Department of Education shall conduct a feasibility study identifying school districts and individual schools with cost-effective operations and high academic achievement, focusing on eliminating top-end costs and implementing standards for grade level proficiency.

Department must develop a review process to anticipate future financial solvency of each school district by analyzing revenues, expenditures, student-to-staff ratios, fund balances, enrollment, tax rates, audit reports, and first-quarter financial data for the current and following two school years.

Department shall create an electronic-based program for districts to submit financial information, allowing districts to enter estimates before budget adoption, with automatic alerts for concerning conditions such as unusual 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.

State Board of Education shall assign "accredited-warned" status to districts that fail to submit a plan, fail to obtain approval, fail to comply with an approved plan, or fail to properly implement a previously approved plan.