Bill > H2304

This bill allows municipalities to establish a Regional School Assessment Reserve Fund to help manage unexpected increases in regional school assessment costs. Specifically, municipalities can create this fund through a majority vote, and they can transfer money into it to prepare for years when their regional school assessment (the amount a municipality pays to support a regional school district) increases by more than 3.5%. The fund has two key restrictions: first, its balance cannot exceed 10% of the annual regional assessment, and second, funds can only be withdrawn through another majority vote in years when the assessment increases by more than 3.5%, with the goal of reducing the increase to no more than 2.5%. The municipal treasurer is permitted to invest the reserve fund money in ways authorized by existing law, and any interest earned will be added to the fund. This bill provides municipalities with a financial tool to help smooth out potentially significant year-to-year increases in school assessment costs, offering some predictability and financial flexibility for local governments.

Government Affairs

https://malegislature.gov/Bills/194/H2304