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Coding: Words which are struck through are deletions from existing law;
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Regular Session, 2010
SENATE BILL NO. 240
BY SENATOR MURRAY
SCHOOLS. Allows the Orleans Parish School Board to exclude certain costs from the
amount of local funds that it would otherwise be required to transfer to the RSD. (8/15/10)
AN ACT1
To enact R.S. 17:1990(C)(2)(a)(iii), relative to the Recovery School District; to allow the2
Orleans Parish School Board to deduct certain costs from the amount of local3
revenues that it would otherwise be required to transfer to the district; to require a4
report accounting for such excluded monies; and to provide for related matters.5
Notice of intention to introduce this Act has been published.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 17:1990(C)(2)(a)(iii) is hereby enacted to read as follows: 8
ยง1990. Recovery School District; creation; governance; operation9
* * *10
C.11
* * *12
(2)(a)13
* * *14
(iii)(aa) In addition to the exclusions allowed pursuant to R.S.15
17:1990(C)(2)(a)(i), when calculating the amount of money a city, parish, or16
other local public school board is required to allocate and transfer to the school17 SB NO. 240
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district relative to schools transferred to the district, the Orleans Parish School1
Board shall be allowed to exclude an amount equal to the actual amount2
expended by the board for the following items:3
(I) Costs incurred on workers' compensation claims filed against the4
board prior to August 29, 2005, including related administrative costs.5
(II) Costs associated with legal claims arising against the board prior to6
August 29, 2005, and legal claims against the board after August 29, 2005, that7
are directly attributable to Hurricane Katrina or Act 35 of the 2005 First8
Extraordinary Session of the Legislature of Louisiana.9
(III) Employer's cost of health insurance for retired participants in the10
board's plan as of July 1, 2009, which shall not exceed twenty-five percent of the11
total premium cost.12
(IV) A supplement of two hundred dollars per month for health13
insurance premiums for retired participants in the board's plan as of July 1,14
2009.15
(V) Costs of short-term borrowing, including but not limited to attorney16
fees and interest, to provide stabilized cash flow to the Recovery School District17
and charter schools.18
(VI) A fee of one-tenth of one percent of total ad valorem and sales taxes19
collected.20
(bb) The total amount of the exclusions provided for in Subitem (aa) of21
this Item shall not exceed six million dollars annually. Actual expenditures in22
excess of six million dollars in any year shall be carried forward for recapture23
in future years, if available.24
(cc) The exclusions provided for in Subitem (aa) of this Item shall expire25
upon the extinguishment of the costs associated therewith, upon any action of26
the board to reduce the constitutional millage from the level in effect for Fiscal27
Year 2009-2010, except as required pursuant to a property reassessment, or28
twelve months following the full settlement of Orleans Parish School Board29 SB NO. 240
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Special Community Disaster Loans, whichever occurs first.1
(dd) The excluded costs enumerated in Subitem (aa) of this Item shall2
be included as a footnote to the annual financial statements of the Orleans3
Parish School Board and audited by its certified public accountant. These4
audited financial statements shall be submitted to the state Department of5
Education, to account for any monies so excluded, within one hundred eighty6
days of the end of each fiscal year. Any audit adjustments to these exclusions7
shall be added to or deducted from, as the case may be, the subsequent year's8
exclusions.9
The original instrument was prepared by Jeanne Johnston. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Cathy Wells.
DIGEST
Murray (SB 240)
Present law allows local public school boards to exclude local revenues specifically
dedicated by the legislature or the voters to capital outlay or debt service or which was
actually expended for facilities acquisition and construction as reported to the state Dept. of
Education (DOE) from the amount otherwise required to be transferred to the Recovery
School District (RSD) for schools transferred from the local school system to the RSD.
Proposed law retains present law and allows the Orleans Parish School Board (OPSB) to
additionally exclude an amount equal to the amount actually expended by the board for the
following items:
1. Costs incurred on workers' compensation claims filed against the board prior to
August 29, 2005, including related administrative costs.
2. Costs associated with legal claims arising against the board prior to August 29, 2005,
and legal claims against the board after August 29, 2005, that are directly attributable
to Hurricane Katrina or Act 35 of the 2005 First Extraordinary Session.
3. Employer's cost of health insurance for retired participants in the board's plan as of
July 1, 2009, which shall not exceed twenty-five percent of the total premium cost.
4. A supplement of two hundred dollars per month for health insurance premiums for
retired participants in the board's plan as of July 1, 2009.
5. Costs of short-term borrowing, including attorney fees and interest, to provide
stabilized cash flow to the Recovery School District and charter schools.
6. A fee of one-tenth of one percent of total ad valorem and sales taxes collected.
Provides that the total amount of these exclusions shall not exceed $6 million annually.
Further provides that actual expenditures in excess of $6 million in any year shall be carried
forward for recapture in future years, if available. SB NO. 240
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Provides that these exclusions shall expire upon the extinguishment of the costs associated
with them, upon any action of the board to reduce the constitutional millage from the level
in effect for FY 2009-2010, except as required pursuant to a property reassessment, or 12
months following the full settlement of OPSB Special Community Disaster Loans,
whichever occurs first.
Requires OPSB to include the excluded costs as a footnote to the annual financial statements
as audited by its certified public accountant and be submitted to DOE within 120 days of the
end of each fiscal year. Further requires that any audit adjustments be added or deducted to
the subsequent year's exclusions.
Effective August 15, 2010.
(Adds 17:1990(C)(2)(a)(iii))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Education to the
original bill.
1. Expands the items which may be excluded from the calculation of local
revenue.
2. Reduces the total amount of exclusions from $9 million/year to $6
million/year and allows for carry forward of excess amounts.
3. Provides for expiration of the itemized exclusions contingent upon prescribed
circumstances.
4. Provides for auditing of annual report by legislative auditor and submission
date for report to DOE.
5. Provides for audit adjustments to be reflected in exclusions for subsequent
year.
Senate Floor Amendments to engrossed bill.
1. Changes from having OPSB report annually to the Dept. of Education
accounting for moneys excluded to providing that such moneys be included
as a footnote to the annual financial statement.