Bill > H1835

This bill amends existing law to allow regional school districts to establish a "stabilization fund," which is essentially a savings account for the district. This fund can be created with a majority vote of the regional district school committee and approval from a majority of the local government bodies in the member towns. The district can then put money into this fund each year, up to 5% of the previous year's budget contributions from member towns, or a larger amount if approved by the director of accounts, which is a state official overseeing municipal finance. Member towns have 60 days to consider the establishment of the fund, and if they don't act, they are considered to have approved it. The total amount in the fund cannot exceed 5% of the combined property values of all member towns, and any interest earned becomes part of the fund. The district's treasurer will manage the fund, and its balance and transactions must be reported annually to the member towns. The money in the stabilization fund can be used for purposes for which regional school districts can borrow money, or other district needs approved by the director of accounts, requiring a two-thirds vote of the regional district school committee. This provision also applies to regional school districts created by special laws.