Bill > S1451

This bill proposes to amend Massachusetts General Laws by allowing school districts to establish reserve funds for unanticipated or unbudgeted costs, subject to specific approval processes and limitations. School districts can create these reserve funds by obtaining a majority vote from both their school committee and legislative body (or, for regional school districts, from legislative bodies in a majority of member communities). The reserve fund can contain up to 10% of the district's annual net school spending, and funds can only be distributed after receiving majority votes from the school committee and the board of selectmen or city council. The district treasurer is permitted to invest these funds in authorized ways, with any earned interest becoming part of the reserve fund. Importantly, the bill explicitly states that money in these reserve funds cannot be counted against a municipality's required contributions to net school spending, which helps ensure that the reserve funds are truly supplemental and do not reduce existing educational funding commitments. This legislation provides school districts with greater financial flexibility to manage unexpected expenses without immediately requiring additional budget allocations or emergency funding requests.

Government Affairs

https://malegislature.gov/Bills/194/S1451