Sectional Analysis for SB 193

School Administrative Expense Cap

Sec. 1

1. Adds a new section to AS 14.17, establishing that a district may not budget for or expend more than $950 per ADM multiplied by the area cost differential under statute for the combined school administration and district administration components.
2. Provides authority to the commissioner to reject a budget which does not comply with (a) and also to withhold payments to the district until the budget is revised to comply with (a), subject to a waiver process set forth in (d);
3. Directs the commissioner to review annual district audits for compliance and sets forth a process for deducting amounts from state aid if they are not in compliance, subject to the waiver in (d);
4. Establishes a process by which a district can request a waiver by the board. The process is to submit a written request to the LB&A, who then reviews the request and makes recommendations to the board. The board shall then either grant or deny the waiver.
5. Requires the commissioner to annually submit a report on actions by the commissioner or the board under this section to the LB&A.

Sec. 2. Effective date of the legislation.

SB 193: S(HES): 5/2/97: mj