Sec. 1. 20-A MRSA §15613, sub-§9, as amended by PL 1985, c. 797, §61, is further amended to read:

9. Balance of allocations. Notwithstanding any other public or private statute, general operating fund balances at the end of a school administrative unit's fiscal year shall must be carried forward to meet the next year's school school's needs in the next year or over a period not to exceed 3 years. Unallocated balances in excess of 3% of the previous year's school budget shall must be used to reduce the state and local allocations share of the foundation allocation for the purpose of computing state subsidy. School boards have the discretion of carrying forward unallocated balances in excess of 3% of the previous year's school budget and disbursing these funds in the next year or over a period not to exceed 3 years.

SUMMARY

This bill permits school boards to carry forward general operating fund balances at the end of a school administrative unit's fiscal year to meet the needs of the school administrative unit for up to 3 years. Under this bill, school boards will have the discretion of carrying forward unallocated balances in excess of 3% of the previous year's school budget for up to 3 years to reduce the state and local allocations for the purpose of computing state subsidy.