Massachusetts S1451 establishes reserve funds for school districts to cover unanticipated costs.

Massachusetts S1451 amends Chapter 40 of the General Laws to create reserve funds for school districts. These funds can be used to cover any unanticipated or unbudgeted costs, provided there is a majority vote from both the school committee and the board of selectmen or city council. For regional school districts, a majority vote from the legislative bodies in a majority of the member communities is required. The reserve fund balance cannot exceed 10% of the annual net school spending. The funds cannot be used to offset required municipal contributions towards net school spending.

Massachusetts S1451 establishes reserve funds for school districts to cover unanticipated costs.

Massachusetts S1451 amends Chapter 40 of the General Laws to create reserve funds for school districts. These funds can be used to cover any unanticipated or unbudgeted costs, provided there is a majority vote from both the school committee and the board of selectmen or city council. For regional school districts, a majority vote from the legislative bodies in a majority of the member communities is required. The reserve fund balance cannot exceed 10% of the annual net school spending. The funds cannot be used to offset required municipal contributions towards net school spending.