Bill > H1878

This bill allows regional school districts, which are entities formed by multiple towns to share educational resources, to establish a "stabilization fund" to set aside money for future needs. This fund can be created with a majority vote from the regional school district's committee and approval from the majority of the towns that make up the district, with a provision that if a town doesn't respond within 60 days, they are considered to have approved. The district can contribute up to five percent of the previous year's apportioned costs to this fund annually, or a larger amount if approved by the director of accounts, a state official overseeing municipal finance. The total amount in the fund cannot exceed five percent of the combined property values of all member towns, and any interest earned becomes part of the fund. The fund's balance and transactions must be reported annually to the member towns. The regional school district's treasurer will manage the fund, and the money can be used for purposes for which the district can borrow or for other approved district needs, requiring a two-thirds vote from the regional district school committee. This provision also applies to regional school districts created by special laws.